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Wednesday, August 06, 2014

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NEWS OF THE DAY

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PLP NEWS ALERTS EMAIL No. 178-2014

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NEWS HEADLINES Top Stories ................................................................................................................................................... 6

Tensions deepen as an obdurate Imran demands Prime Minister's exit, re-elections ................................ 6

Government banking on PPP: Zardari speaks to Imran, Siraj ....................................................................... 7

MQM leaders to meet Nawaz today ............................................................................................................. 8

Debate on invocation of Article 245: Jurisdiction of high court still intact: Nisar ........................................ 9

Government faces tough time in National Assembly ................................................................................. 10

Petitions filed under Article 199 declared maintainable ............................................................................ 11

Pakistan faces governance challenges: World Bank ................................................................................... 12

Afghan soldier guns down US general in Kabul .......................................................................................... 14

30 militants killed in North Waziristan military operation ......................................................................... 15

Pakistan again demands handing over of Fazlullah .................................................................................... 15

Gaza truce holds, officials travel to Cairo for talks ..................................................................................... 16

British minister Sayeeda Warsi resigns over Gaza policy ........................................................................... 18

Obsolete power system: Ministry not aware of funding requirements ..................................................... 19

India lashes WTO, defends decision on failed trade deal ........................................................................... 20

Ecclestone relieved at bribery trial deal ..................................................................................................... 21

THE RUPEE: upward trend .......................................................................................................................... 22

Sugar export: SBP reduces advance deposit requirement ......................................................................... 23

Presence of former ministers in body: AGP, PAC members at daggers drawn .......................................... 24

Treason trial: prosecution witness fails to respond to question ................................................................ 25

World Bank pledges millions to Ebola fight ................................................................................................ 26

Egypt to dig 'new Suez canal' at cost of $4 billion ...................................................................................... 26

Man held over 'bomb hoax' on Qatar-UK flight .......................................................................................... 27

Index inches up ........................................................................................................................................... 27

ISE index improves by 15.8 points .............................................................................................................. 28

BRIndex30 gains 93.58 points ..................................................................................................................... 28

Business and Economy: Pakistan ............................................................................................................. 30

Eighth Pakistan SME Forum to be held on August 19 ................................................................................. 30

Political uncertainty hitting economy: PIAF ................................................................................................ 30

Political parties urged to join hands for economic revival ......................................................................... 31

Activity at Karachi and Qasim ports ............................................................................................................ 32

Shipping Intelligence ................................................................................................................................... 33

Frequently delayed flights: UK aviation authorities warn PIA again .......................................................... 36


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Lack of automation for IT deduction at source: GPO incapable to differentiate between filers, non-filers .................................................................................................................................................................... 37

Engro Foods posts Rs 329 million earnings in 1H2014 ............................................................................... 38

McDonald's clarification ............................................................................................................................. 38

Presence of former ministers in body: AGP, PAC members at daggers drawn .......................................... 39

Company News: Pakistan ......................................................................................................................... 41

Askari General Insurance Company Limited ............................................................................................... 41

LG Electronics' net profit surges by 165 percent in Q2 .............................................................................. 43

Company News: World ............................................................................................................................. 45

Bank of Cyprus completes 1 billion euro private share placement ............................................................ 45

Credit Agricole profit plunges on Espirito Santo hit ................................................................................... 45

Time Inc cuts full-year revenue forecast .................................................................................................... 46

Taxation: Pakistan .................................................................................................................................... 48

New two-tier ST regime for retailers: tax experts seek FBR clarification ................................................... 48

IRS, PCS officers asked to submit declaration of assets by August 15 ........................................................ 49

Cotton and Textiles: Pakistan .................................................................................................................. 50

Cotton market: prices up amid rising demand by mills .............................................................................. 50

Growers hold protest against cut in cotton price ....................................................................................... 51

Energy supply constraints: textile industry's growth being marred: APTMA ............................................. 51

Tax evasion Fabric importers to be issued show cause notices ................................................................. 52

PTA for installation of four RO plants in tannery zone ............................................................................... 53

Agriculture and Allied: Pakistan ............................................................................................................. 55

Sugar export: SBP reduces advance deposit requirement ......................................................................... 55

Daily trading report of PMEX ...................................................................................................................... 56

Government urged to purge PGJDC BoD of political appointments .......................................................... 56

China has vast scope for export of Pakistani gems, jewellery: PCJCCI chief ............................................... 57

Pak-China Economic Corridor to open avenues of cooperation in agriculture sector: first CAC Pakistan Summit opens ............................................................................................................................................. 58

Country spent $1.859 billion on palm oil import during fiscal year 2014 .................................................. 59

IT and Computers: Pakistan .................................................................................................................... 60

Centaurus Mall chooses Makkays ............................................................................................................... 60

Fuel and Energy: Pakistan ....................................................................................................................... 61

Ahsan briefs German Ambassador about energy projects ......................................................................... 61

Net oil, gas production up by seven percent: OGDCL to start exploration activities in 17 new blocks ..... 62

Obsolete power system: Ministry not aware of funding requirements ..................................................... 63


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Fatal accidents: K-Electric refutes Sindh government's allegations ........................................................... 64

Fuel and Energy: World ............................................................................................................................ 65

Brent settles at nine-month low on oversupply fears, weak demand ....................................................... 65

OMV says Russia sanctions don't impact South Stream pipeline ............................................................... 66

BR Research: All ....................................................................................................................................... 67

OGDC amasses record profits ..................................................................................................................... 67

Two cheers for Cherat ................................................................................................................................. 68

ABL in fine form .......................................................................................................................................... 69

EFOODS: struggle continues ....................................................................................................................... 70

Crime Updates ........................................................................................................................................... 72

16 POs arrested in Lahore ........................................................................................................................... 72

Peshawar: Huge cache of explosives seized ............................................................................................... 72

5 robbers arrested in Islamabad ................................................................................................................. 72

Nowshera: DI Khan jailbreak prisoner held ................................................................................................ 73

2 girls raped in Pakpattan ........................................................................................................................... 73

Miscellaneous New .................................................................................................................................... 74

Addressing energy woes: LNG supply to CNG stations could save $1.4 billion .......................................... 74

Gas supplies: Fearing public anger, govt delays decision on price hike ..................................................... 75

Gems and jewellery: Pakistan should unearth wealth, exploit advantage ................................................. 77

Corporate results: Allied Bank records healthy profit ................................................................................ 78

Corporate results: OGDC notches up profit of Rs123 billion ...................................................................... 79

Regional grouping: Visa-on-arrival facility proposed for SAARC ................................................................ 80

Businessmen in India to discuss trade potential......................................................................................... 81

CAC summit: An exhibition to promote Pakistan’s agriculture .................................................................. 82

UK MPs demand end to Israeli restrictions on Palestinian land ................................................................. 83

Seven Summits in Seven Continents: Brother-sister duo receive rousing welcome .................................. 84

Precautions: Anti-dengue drives under way in twin cities ......................................................................... 85

Water-borne diseases: ICT to form rapid response force........................................................................... 86

Fundamental rights: ‘245 does not curtail court’s powers’ ........................................................................ 86

Partial pause: LHC extends stay order against metro bus .......................................................................... 87

Better coordination: OIC secretary general visits Comstech ...................................................................... 88

Concept cars: NUST race car finishes in top half at international competition .......................................... 89

Celebrating August 14: H-8 college plans events, competitions ................................................................ 90

Developing research: Media Development Trust and FAST sign MoU ....................................................... 90

OPEN MARKET FOREX RATES ...................................................................................................................... 92


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INTER BANK RATES ...................................................................................................................................... 93

Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) ................................................................................... 94


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Top Stories

Tensions deepen as an obdurate Imran demands Prime Minister's exit, re-elections August 06, 2014

ZULFIQAR AHMAD

Making it crystal clear that the time to negotiate with government is over, Pakistan Tehreek-e-Insaf (PTI) chairman Imran Khan Tuesday demanded the resignation of Prime Minister Nawaz Sharif with a call for re-elections. Speaking at a crowded press conference here, Khan said that his party would hold its planned 'long march' protest in Islamabad at any cost as the country is at crossroads due to a fractured democracy which has now been turned into a 'monarchy'. "These leaders who have been befooling the nation in the name of democracy since the creation of Pakistan deprived us of the freedom our forefathers had achieved after great sacrifices and now our 'long march' is meant to get back that freedom," he maintained. To a question about the duration of his sit-in, he said it will continue unless the government announces re-elections. The PTI has been moving from pillar-to-post for verification of voters' thumb impressions in four constituencies for the last 14 months, but that in vain. "We knocked every door to seek justice but had to return empty handed, so ultimately we'd no option but to come on roads for our rights and the Islamabad march will the biggest march in [Pakistan's] history, where we will demand re-elections," he contended. Khan said all members of National Assembly belonging to PTI, which has 34 lawmakers in the 342-member house, are ready to resign at his call, as part of the struggle for a fair, free and transparent election. He also said that it is not only PTI as there are other political parties that are also ready to resign. But he refused to give further details, saying these parties will themselves reveal it later "as resignation is just not an issue". "We shall not leave the capital until our demand is met," warned the PTI leader who has made a demand for mid-term polls under a newly independent election commission as the principal aim of the party's nearly three-month-old protest campaign over alleged fraud in 2013 elections. "We want real democracy and an end to the kingship of a family in the country to pave the way for building a new Pakistan," said Khan, whose party runs the government in Khyber Pakhtunkhwa province. To a question about disagreement with Dr Tahirul Qadri for jumping into the fray hand in hand, he said both the parties might join hands later. "We might be together somewhere in the middle of the road, as ours is Azadi March and his is a revolutionary march," he clarified. He said the caretaker set-up, judiciary and the Election Commission of Pakistan rigged the 2013 polls in favour of Pakistan Muslim League-Nawaz (PML-N), and he would announce the names of those involved in that rigging on August 11. The PTI chairman alleged that massive irregularities took place at 17,000 polling stations while extra votes were enlisted in 90


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constituencies after the issuance of electoral rolls which led to change the whole scenario. To a question about Mehmood Khan Achakzai's criticism, he said that the Pashtoon nationalist leader needs to make it clear "whether he is with the monarchy or with democracy." He rejected the notion of being backed by the army for holding protest against the government, saying his party had a track record of calling a spade a spade whether it's army or the judiciary. "The man who was backed by army, took money from ISI; created IJI to topple a democratically elected government is now your prime minister," he said. About invocation of Article 245 in federal capital ahead of PTI long march, he said, "we're glad that the government invoked Article 245, because the army will protect us". He warned Punjab police and the government once again that if they took any action against his supporters or put him under house arrest, the entire country will be paralysed.

Copyright Business Recorder, 2014

Government banking on PPP: Zardari speaks to Imran, Siraj August 06, 2014

Prime Minister Nawaz Sharif on Tuesday reportedly spent a busy day to discuss the current political situation with his key allies and leader of the opposition. In over two-hour-long talks with leader of the opposition in the National Assembly Syed Khurshid Shah, chief of Pakhtunkhwa Milli Awami Party (PkMAP) Mahmood Khan Achakzai, Jamiat Ulema-e-Islam (JUI-F) Chief Maulana Fazlur Rehman and head of Qaumi Watan Party Aftab Ahmad Khan Sherpao, Nawaz Sharif reportedly expressed his views on the situation. The meeting with these leaders took place hours after the PkMAP Chief Mehmood Khan Achakzai requested the PM in the National Assembly to convene a meeting of all the heads of political parties to find a way out of the prevailing situation. Sources said the issue of Article 245 also came under discussion during the meeting. Finance Minister Ishaq Dar, Senator Pervaiz Rashid and Khawaja Saad Rafiq were also present. A statement said that the declaration announced after the meeting said; the current political situation came under discussion and all the leaders agreed to uphold the sanctity of the constitution and preserve the supremacy of democracy and parliament. The declaration further maintained that the government and opposition would play their role towards strengthening the system and resolving the mutual issues with consensus. INP adds: Co-Chairman Pakistan People's Party former President Asif Ali Zardari on Tuesday afternoon telephoned PTI chief Imran Khan and Amir JI Sirajul Haq from London and exchanged views on the current political situation in the country. Spokesperson Senator Farhatullah Babar said that in his telephonic talk with Imran Khan the former President said that the PPP agreed with the contention of recount in the disputed constituencies under the law and opposed the calling in of troops in Islamabad under Article 245 of the Constitution. However, it was also crucial that no opportunity was provided to anyone to derail the democratic system in the country behind the façade of political instability, he said.


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The baby should not be thrown out with bath water; the Spokesperson quoted Zardari as having said. In telephonic talk with JI Amir Sirajul Haq, the former President also reiterated the same viewpoint saying also that he believed that the guiding principle should be that worst democracy is 'better than any so-called benign dictatorship'. Babar said the thrust of the phone calls of former President was his emphasis on protecting and promoting democracy and constitutionalism and at the same time sending a clear message to the government to listen to the voices of reason and logic and not overshoot the bullet. He said that Zardari is genuinely and seriously concerned over the direction and momentum of the political course in the country. He is keen to consult all political forces with a view to protecting democratic structures from being undermined under any pretext and the phone calls are part of the consultative process. At the same time, the former President is keen to dissuade the government from any knee jerk reaction or embarking upon an irrational and illogical course that may result in political instability and expose democratic institutions to new and unforeseen kinds of threats. Meanwhile, in reply to a question the Spokesperson said the PPP will not participate in the PAT's gathering on August 10 in Lahore ostensibly to pay homage to the victims of the June 17 Model Town tragedy. While the PPP condemns the Model Town incident, calls for registration of an FIR, holding of judicial inquiry and punishment to those who transgressed authority and also deeply sympathises with bereaved families of the victims it will not do anything that might be seen as aligning with PAT's so called 'revolution march' on Islamabad, he said. The Spokesperson said the PPP believes that calling in troops under Article 245 is a fatal decision that will have serious repercussions and said that the decision should be reviewed by the government.


MQM leaders to meet Nawaz today August 06, 2014

The federal government has contacted Muttahida Qaumi Movement and formally invited its leaders to meett Prime Minister Nawaz Sharif In a statement issued from London Secretariat, it has been stated that the federal government has contacted MQM and invited it for a meeting with Prime Minister Nawaz Sharif. It said that MQM accepted the invitation and a high-level MQM delegation would meet Nawaz Sharif on Thursday noon at PM's House.

Copyright Independent News Pakistan, 2014


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Debate on invocation of Article 245: Jurisdiction of high court still intact: Nisar August 06, 2014

NAVEED BUTT

Interior Min-ister Chaudhry Nisar Ali Khan has categorically stated that the Army will not be employ-ed towards achievement of any political purpose and that invocation of Article 245 has no link with any protest, sit-in, 'long march' or public meeting. "The government has invoked Article 245 to combat terrorism and avert any chance of a backlash due to the ongoing military operation in North Waziristan. Article 245 of the Constitution has been invoked after consultations within the party and with the army, and legal counselling. The Interior Minister said while winding up a debate in the National Assembly on invocation of Article 245 on Tuesday. The Interior Minister said Islamabad has not been handed over to army. He said that jurisdiction of Islamabad High Court is still intact. He said that only federal government has the authority to invoke Article 245. However, the federal government has asked the provincial governments that they can requisition the troops under the notification. He said that troops have been deployed at Islamabad Airport, Faisalabad Airport and Karachi Airport as the pre-emptive measure. Nisar also called upon Pakistan Tehreek-e-Insaf (PTI) to amicably resolve the issue and avoid any confrontation at a time when the military is busy in war against terrorism. He said any opposition political party-Pakistan People's Party (PPP) or Muttahida Qaumi Movement (MQM) or Jamaat-i-Islami (JI) could play a role of mediator to settle the issues between the PML-N government and PTI. He said Article 245 has been invoked more than 24 times since 2007, including during Lal Masjid operation and the lawyers march for an independent judiciary. He said that according to notification of Interior Ministry, the Army is called in Islamabad to combat terrorism. The deployment of troops at seven sensitive places, including the Margalla Hills, in Islamabad was there for the last five years. He said the army has been deployed at these places as pre-emptive measures of the government. The Interior Minister said opposition members' criticism in this regard has no justification, adding that the invocation of Article 245 is not against the law or the constitution. He said there are instances that army was called in aid of civil administration in Sri Lanka, Britain, Spain, Italy and several Latin American countries. Federal Minister for Railways Khawaja Saad Rafique urged the PTI to delay its protest till the end of North Waziristan operation. He said the government has again invited the opposition for dialogue to resolve the issue. Taking part in the debate, he said it is quite surprising that PTI supported holding of dialogue with Taliban but is not ready to talk with the government. The Minister said the country is in a state of war and the armed forces are busy in eliminating terrorists from the country. He said democratic forces are unanimous that the country cannot progress in presence of terrorism. He said that "the armed forces and the long marchers will not


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come face to face on August 14." However, he said, if there is any untoward incident, the armed forces will take action, adding that a confrontation between the government and PTI can harm democracy. He said, PTI should guarantee that there will be no terrorist incident during its 'Azadi march'. He said that those who were rejected by people in elections cannot derail the democratic system. Defence Minister Khawaja Muhammad Asif said the government has taken a decisive step against terrorism. He said the country is already fighting terrorism and a sluggish economy. He said all the issues should be resolved under the Constitution. "Let us settle the matters on floor of this august House," he maintained. He categorically stated that invoking Article 245 in the federal capital has no link with PTI's 'long march' on 14th August. Mahmood Khan Achakzai of Pakhtunkhwa Mili Awami Party (PkMAP) said that if there are some hidden hands behind the PAT protests and marches all democratic forces must join hands to fight off such challenge. He said that we will not tolerate violation of the Constitution. He proposed that the Prime Minister should convene a meeting of the political parties' heads, including Imran Khan, to resolve the issues.


Government faces tough time in National Assembly August 06, 2014

ZAHEER ABBASI

The government came under severe criticism in the National Assembly after the opposition termed invocation of Article 245 a 'mini martial law'. The opposition leader, Syed Khurshid Shah, who opened a discussion on Article 245 in the National Assembly on Tuesday, stated that invocation of this Article simply reflects government's complete failure. He further added that his party will lend a helping hand to the government only if it announces withdrawal of Article 245; otherwise the PPP would leave other parties behind in 'protest competition' against the ruling party. The invocation of Article 245 can be harmful for democracy and the government will be equally responsible for such a situation, he said, adding that Pakistan People's Party (PPP) will protect democracy, which does not necessarily mean protecting any political party. Shah regretted that the government has not taken parliament into confidence as was done by his party in 2009 in relation to the Malakand situation. PPP-led coalition government had called in Army in Malakand due to a war-like situation after taking all the political parties in confidence in an in-camera joint sitting of both the houses of the Parliament. He said the holding of political meetings or sit-ins was a democratic right of any political party and suggested the government to let Pakistan Tehreek-e-Insaf come to Islamabad and allow it hold a 'Jalsa' or a 'Dharna' on August 14. The opposition leader in the National Assembly demanded of the government to immediately withdraw Article 245 and resolve the issue politically. PTI leader Dr Arif Alvi said his party has decided to protest against the rigging after exhausting all other options. He said that the government has invoked Article 245 to block


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the 'long march' of PTI and demanded that it should be withdrawn immediately. Chief of Awami Muslim League Sheikh Rashid Ahmed also asked the government to withdraw Article 245. Sheikh said the government is pursuing a policy of confrontation, which would ultimately harm democracy. Muttahida Qaumi Movement's (MQM) Rashid Godil said the government must explain the reasons behind its decision regarding invocation of Article 245. He urged the government to resolve the issue through a dialogue. He questioned if Article 245 was necessary in view of the operation Zarb-e-Azb in North Waziristan then why it was not enforced from the day one of the Waziristan operation. Sahibzada Tariqullah of Jamaat-i-Islami and Aftab Khan Sherpao of Qaumi Watan Party said that invocation of Article 245 in federal capital is unjustified. Former Chief Minister Khyber Pakhtunkhwa and Ameer Haider Khan Hoti and Ejazul Haq of Muslim League Zia also spoke on the issue.


Petitions filed under Article 199 declared maintainable August 06, 2014

WAQAR LILLAH

The Islamabad High Court (IHC) on Tuesday declared that petitions filed under Article 199 of the constitution are maintainable despite invocation of Article 245 of the Constitution. A single-member bench of Justice Atharminallah while hearing objections raised by the IHC's institution branch on several petitions filed under article 199 of Constitution said the court has jurisdiction to hear petitions filed under Article 199 of the constitution. During the course of proceedings, the court asked Additional Attorney General (AAG) Tariq Kokhar whether such kind of petitions are maintainable, he replied that after invocation of Article 245 of constitution the court could not entertain the petition filed under Article 199. Upon which, lawyers who filed petitions under the said article contended that the court has power to hear such cases despite the invocation of Article 245 by the government. After hearing arguments, the court decided to entertain petitions filed under Article 199. Earlier, IHC's institution branch raised objection on several petitions filed under Article 199 after the invocation of Article 245 of the constitution. The Interior Ministry, through a notification on July 24 invoked Article 245, in the federal capital territory for three months. Article 245 says: (1). The Armed Forces shall, under the directions of the Federal Government, defend Pakistan against external aggression or threat of war, and, subject to law, act in aid of civil power when called upon to do so. (2) The validity of any direction issued by the Federal Government under clause (1) shall not be called in question in any Court.


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(3) A High Court shall not exercise any jurisdiction under Article 199 in relation to any area in which the Armed Forced of Pakistan are, for the time being, acting in aid of civil power in pursuance of Article 245: Provided that this clause shall not be deemed to affect the jurisdiction of the High Court in respect of any proceeding pending immediately before the day on which the Armed Forces start acting in aid of civil power. (4) Any proceeding in relation to an area referred to in clause (3) instituted on or after the day the Armed Forces start acting in aid of civil power and pending in any High Court shall remain suspended for the period during which the Armed Forces are so acting.


Pakistan faces governance challenges: World Bank August 06, 2014

TAHIR AMIN

Pakistan still faces significant governance challenges that could hamper policies to reduce poverty and spur economic growth, while the energy sector is in serious crisis, facing high cost and inefficiency that make it hard to finance investments, the World Bank said. According to the World Bank latest report "Pakistan Country Program Snapshot" released on Tuesday states that widespread power outages are a major problem obstructing development and Pakistan's energy sector is in a serious crisis, facing high cost and inefficiency that make it hard to finance investments. Corruption and accountability challenges significantly influence Pakistan's development objectives and service delivery. The country's high perceived risks negatively affect the investment climate, while corruption undermines the quality of and access to services. For example, electricity supplies do not cover development needs, while rural services like health and education, as well as access to credit, have been undercut. The report maintained that governance challenges range from the rule of law, security and a legacy of corruption, to resource management and the effectiveness of the civil service. Addressing these is critical to the success of policies to improve service delivery, competitiveness and the vital energy sector, as well as fostering stability in the country. Another critical challenge is the resource management, particularly revenue collection and the finances of state-owned enterprises (SOEs). Tax collection levels are relatively limited both in a comparative sense, and in relation to the financing needs of development priorities. Meanwhile, SOEs actual and potential losses, as well as related flows of subsidies, are a fiscal risk. These two challenges will require the strengthening of tax administration and SOE corporate governance. According to the report, the World Bank's program in Pakistan is governed by its Country


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Partnership Strategy (CPS). Total portfolio commitment increased over the CPS period (FY10-14), with slower disbursements. The Pakistan portfolio has 24 active investment lending operations with a total net commitment of $4.60 billion, and a total disbursement to date of $1.61 billion (and a total un-disbursed balance of $2.78 billion). In addition, the Bank manages a Multi-Donor Trust Fund (MDTF) for the conflict affected areas of about $160 million, which provides grants to KP, FATA and Balochistan. The MDTF portfolio had 11 active projects with disbursement to date of $42 million. Disbursements were $554 million in FY13, for a disbursement ratio of about 20 percent. Disbursement performance has lagged in the past couple of years, partially due to lack of quick disbursing or budget support operations in the portfolio. At the same time, disbursement linked indicator-based operations contribute a significant portion of disbursement. Pakistan's overall performance towards CPS outcomes has been mixed with considerable achievements in education and social protection but less progress on transformational outcomes of increasing revenue mobilisation and improving energy efficiency. The MDTF for conflict-affected provinces has extended small operations in areas such as emergency road recovery; hospital revitalisation; rural livelihoods; and improving urban centers. About two-thirds of Bank operations are implemented at the provincial level, maintained in the report. The new Pakistan CPS for FY15-19 is structured to direct the full force of Bank Group support to help the country tackle the most difficult but potentially transformational areas to reach the twin goals of poverty reduction and shared prosperity. The key prongs of the new country partnership strategy are organized around the following five areas: (1) transforming the energy sector; (2) increasing private sector participation; (3) breaking through the "good enough" barrier on services; (4) reaching out to the undeserved, neglected and poor; and (5) leveraging regional markets. Getting the most transformational change will also require a shift in instruments and engagement as follows: (1) increase the use of policy support operations; (2) leverage large private sector funding to complement public sector reforms; (3) increase the use of results based operations; (4) share knowledge, build capacity and facilitate dialogue; and (5) reduce fragmentation in our sub-national engagements. It further says that the new CPS for FY15-19, which is under preparation, is expected to provide International Development Association lending of about $1.2 billion per year (or $5.5 billion over the CPS period). Pakistan could also benefit from additional regional IDA allocations, particularly in trade and energy. Pakistan is an IDA/IBRD blend country. IBRD availability will depend on minimum creditworthiness criteria, characterised by reserves equal to at least three months of next years imports of goods and services, and a stable or declining government debt to GDP ratio. The IFC would also expand its efforts to bring in more private capital and will invest between $500-$700 million per year from its own sources and another $50-100 million from other investors. Altogether this amount would represent a 20 percent increase over the last CPS period. The Bank plans to help ease energy shortages through investments, including the first phase of the Dasu hydropower project and the regional CASA-1000 project, bringing central Asian power to Pakistan through Afghanistan. IFC is engaged with domestic and international sponsors to finance private power projects. For the next few years, IFC is expected to invest about $500-$700 million annually. Half will be in trade finance and the remainder focused on infrastructure,


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financial markets, agribusiness, manufacturing and services. Infrastructure will remain IFC's largest investment exposure in Pakistan, with a focus on low cost and renewable energy. IFC is currently engaged with local and international (Chinese and Korean) sponsors to finance mega private energy projects, aimed at adding 10,000MW of electricity in the next five years, including hydro, thermal, and renewable, as well as LNG imports. IFC is at an advanced stage of preparation with China Three Gorges to mobilise substantial equity investment for a platform company that will develop hydro, thermal, and wind power, maintained in the report.


Afghan soldier guns down US general in Kabul August 06, 2014

An Afghan soldier shot dead a US general on Tuesday at an army training centre in Kabul - the highest-ranking American officer to be killed since the September 11, 2001 attacks. The shooting, which left more than a dozen other soldiers including a senior German officer wounded, rocked the US-led project to train up the Afghan army as Nato combat forces withdraw after 13 years of fighting the Taliban. The Afghan soldier was himself killed after he opened fire during a high-level visit by Nato officers to the Marshal Fahim National Defence University, a sprawling training complex on the outskirts of the capital. "Among the casualties was an American general officer who was killed," Pentagon spokesman Rear Admiral John Kirby told reporters in Washington, declining to name the general. Kirby said that the fatality was the highest-ranking US officer to have been killed since the 9/11 attacks when Lieutenant General Timothy Joseph Maude was killed by a hijacked airliner that crashed into the Pentagon. No US general has been killed in combat since the Vietnam War. Kirby said that "up to 15" people were injured in Tuesday's attack. Separately, the German army said that one of its generals was wounded. "We believe that the assailant was an Afghan soldier," Kirby added. Afghan officials had earlier described the attacker as a man wearing Afghan uniform, suggesting he may not have been a soldier. The shooting was by far the highest profile "insider attack" of the Afghan conflict, in which scores of US-led Nato troops have been killed by Afghan soldiers turning their guns on their allies. Also known as "green on blue" attacks, the killings have bred fierce mistrust among soldiers and forced joint patrols to be overseen by armed guards. The Taliban did not immediately claim responsibility for the attack, and Western officials say that most such attacks stem from personal grudges and cultural misunderstandings rather than insurgent plots. "Insider attacks" declined rapidly last year as Nato combat troops closed many bases and reduced operations before their complete withdrawal by the end of this year. Screening of Afghan army recruits was also tightened.


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AFGHAN ARMY UNDER PRESSURE President Hamid Karzai condemned Tuesday's attack as a "cowardly" strike against Afghan and Nato officers. "It is the work of those enemies who do not want to see Afghanistan have its own strong institutions," he said.

Copyright Agence France-Presse, 2014

30 militants killed in North Waziristan military operation August 06, 2014

Military on Tuesday said it had bombed six rebel hideouts in a north-western district where it has been carrying out an operation since June, killing 30 suspected militants. The air strikes targeted hideouts in Dattakhel, Marsikhel and Kamsham areas of the North Waziristan where the military is fighting Pakistani Taliban and foreign militants. "Six terrorist hideouts were destroyed through aerial strikes in North Waziristan. Today 30 terrorists have been killed," a statement said. Neither the death toll nor the identity of those killed could be immediately verified. Residents from the district recently reported high numbers of civilian casualties, including women and children, in a similar strike. More than 550 militants and 29 soldiers have been killed in the assault so far, according to the military. The fighting has displaced some 800,000 people into towns that border the tribal areas where they face testing conditions amid a lack of food rations and high rents.


Pakistan again demands handing over of Fazlullah August 06, 2014

Pakistan on Monday once again demanded handing over of Tehreek-e-Taliban Pakistan Chief Molvi Fazlullah from Afghanistan. Talking to media persons here, Adviser to the Prime Minister on Foreign Affairs Sartaj Aziz said that the terrorist attacks from Afghan soil was a serious issue and Pakistan was in touch with the Afghan authorities for better management of the border. He said that installation of biometric verification system on border crossing points can ensure better management of the border. He stated in categorical terms that Pakistan would fully protect its border and retaliate to any fire from across the border. He said the terrorists were common enemies of Pakistan and Afghanistan and both the countries should fully cooperate in tackling them. On Indo-Pak talks, the adviser said that foreign secretaries of the two countries were meeting on 25th of this month.


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Responding to a question about the internal situation, Aziz said the democratic system faces no threat from the long march. "Continuity of democracy is vital for the progress and prosperity of the country and no extra constitutional step will be tolerated," he added. Earlier, addressing a seminar on 'Building China Pakistan Community of Shared Destiny in the New Era", Sartaj Aziz said that friendship with China was the cornerstone of Pakistan's foreign policy. The trajectory of friendship and co-operation between the two countries has moved steadily upwards and has crossed a new threshold in the past fourteen months. He said that Pakistan-China cooperation had now expanded from political and defense fields to industry, energy, water and power, agriculture and infrastructure projects. Both the countries are making conscious efforts to further improve co-operation in joint ventures, high tech industry, telecom and manufacturing. Aziz said China-Pakistan Economic Corridor is a landmark project which will connect China with Karachi and Gwadar. He said Pakistan and China are discussing a number of mega projects under the rubric of Economic Corridor in several fields like energy, infrastructure and connectivity which would revitalise Pakistan's economy. Referring to the sacrifices rendered by Pakistan in the war against terrorism, the Adviser on foreign affairs said that the operation launched in North Waziristan against terrorists was proceeding successfully. Large parts of the area have been cleared of the militants and their infrastructure destroyed. Expressing the resolve to eliminate all local and foreign terrorist groups, Sartaj Aziz said that their objective was to establish writ of the state and not let its territory be used against any other country. He said that security of all foreign nationals especially Chinese working in Pakistan was their top priority. "Those attacking Chinese experts working in Pakistan want to drive a wedge between the two countries. We will not let them succeed in their nefarious designs. The prime minister has issued specific instructions to all concerned agencies to provide foolproof security to Chinese citizens," he added.

Copyright Associated Press of Pakistan, 2014

Gaza truce holds, officials travel to Cairo for talks August 06, 2014

A 72-hour truce took root Tuesday in Gaza, as Israeli and Palestinian delegations travelled to Cairo to try to extend the cease-fire and families picked through the debris of war. The guns fell silent after 29 days of fighting, bringing relief to millions as both sides counted the cost from a conflict that killed 1,875 Palestinians and 67 people in Israel. Officials on both sides confirmed they had sent small delegations to Cairo for talks aimed at securing a permanent ceasefire after the three-day window closes. But there is an uphill diplomatic battle ahead. Negotiators in the Egyptian capital will likely confront conflicting demands on both sides. The Palestinians insist Israel end its eight-year blockade of Gaza and open border crossings, while Israel wants Gaza fully demilitarised. But after the longest period of quiet since fighting began, Palestinian foreign minister Riyad al-Maliki said he expected "the


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cease-fire to expand into another 72 hours and beyond". In Gaza City, people came out in numbers, children played on the street and the beach, and some shops reopened for the first time in days. Others ventured home for the first time only to witness scenes of devastation. "What am I going to tell my wife and children? I don't want them to see this! They will go crazy," said Khayri Hasan al-Masri, a father of three who returned to his heavily damaged home in Beit Hanun in the north after fleeing when Israel's ground offensive began on July 17. Gaping holes have pierced the walls of his home. There is a mortar in the living room, a bazooka upstairs. At a bullet-riddled girls' school, an Israeli flag and an anti-Hamas slogan had been etched on the wall of a classroom, and discarded ration packs and tuna cans labelled in Hebrew littered the floor. In southern Israel, there was relief but scepticism. "I never trust Hamas; we don't trust them," said Orly Doron, an Israeli mother living in a kibbutz on the Gaza border that has been battered by rocket fire. "We had three or four cease-fires during this war; we all saw they weren't kept." Just minutes before the truce took hold, sirens wailed in Jerusalem and Tel Aviv as Hamas fired 16 rockets over the border, while Israeli warplanes carried out at least five strikes on Gaza. It is the second time in four days the two sides had agreed to observe a 72-hour humanitarian truce. The last attempt on August 1 - brokered by Washington and the UN - was shattered within just 90 minutes. Israeli troops leave Gaza - As the new truce went into force, Israel withdrew its troops, ending the ground operation aimed at destroying tunnels Gaza militants use to attack its territory. Lieutenant Colonel Peter Lerner said troops would be "deployed in defensive positions" outside Gaza and would respond to any truce violations. The cease-fire, announced by Egypt late on Monday, marks the quietest period since fighting began. Medics in Gaza reported no new deaths or injuries since midnight. The Palestinian health ministry said 1,875 Palestinians had been killed during the conflict, including 430 children, and said 9,567 people had been wounded, including 2,878 children. The quiet allowed emergency workers to move into previously inaccessible areas, with the worst devastation near the southern city of Rafah, which had been flattened in a massive Israeli assault that began Friday. In the West Bank city of Ramallah, deputy economy minister Taysir Amro said the 29-day war had caused damage of up to $6 billion dollars (4.5 billion euros). The latest breakthrough emerged in Cairo where Palestinian and Egyptian mediators had held two days of talks with Hamas and Islamic Jihad representatives. The Israeli security cabinet is meeting to discuss efforts to secure a long-term cease-fire deal. Cairo consultations - The United States and the United Nations have welcomed the truce, saying the onus was on Hamas to uphold its end of the deal. Israel had also been subject to increasingly harsh criticism over the high number of civilian casualties during its military operation launched on July 8 to counter rocket fire from Gaza. The army says it destroyed 32 cross-border tunnels, struck nearly 4,800 targets and killed 900 Palestinian "terrorists". "We struck just over 3,000 rockets; they launched over 3,300 rockets and we expect that they still have about 3,000 rockets left. This is a challenge we have to address,"


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Lerner said. Yossi Kuperwasser, director general of the strategic affairs ministry, said Israel needed assurances in Cairo that the cease-fire would "last for a long time and that Hamas is not going to rearm itself." Jordan also presented a new resolution to the UN calling for a lasting cease-fire between Hamas and Israel, and an international effort to rebuild the Palestinian enclave.


British minister Sayeeda Warsi resigns over Gaza policy August 06, 2014

A British minister who was the first Muslim to sit in the cabinet resigned on Tuesday over the government's "morally indefensible" policy on Gaza. The decision by Baroness Sayeeda Warsi, a minister at the Foreign Office and for faith and communities, heaped fresh pressure on Prime Minister David Cameron to take a tougher line against Israel over its actions in Gaza. His coalition government has faced sustained criticism in recent days, led by the main opposition Labour Party, that it has not spoken out strongly enough over a conflict that has killed 1,867 Palestinians and 67 people on the Israeli side. "Our approach... in Gaza is morally indefensible, is not in Britain's national interest and will have a long-term detrimental impact on our reputation internationally and domestically," Warsi wrote to Cameron in her resignation letter. She said there was "great unease" in the Foreign Office, where Philip Hammond took over as Foreign Secretary from William Hague last month, about how recent policy decisions had been made. While Warsi's star has dimmed in recent years, she was once a high-profile example of Cameron's desire to diversify his Conservative party away from its traditional white, male base. Warsi's parents were Pakistani immigrants and she trained as a lawyer before being made a member of parliament's upper House of Lords in 2007. She was appointed to Cameron's cabinet when his coalition government took power in 2010 but was shuffled out of the full cabinet, the powerful inner circle of government ministers, in 2012. Warsi describes herself on her website as "best known for being the first Muslim to serve in a British cabinet and the foremost Muslim politician in the Western world". 'Inexplicable' silence on Gaza - Labour leader Ed Miliband last week accused Cameron of "inexplicable" silence over the suffering of Palestinian civilians in Gaza, now in a three-day cease-fire. "The government needs to send a much clearer message to Israel that its actions in Gaza are unacceptable and unjustifiable," Miliband said. "What I want to hear from David Cameron is that he believes that Israel's actions in Gaza are wrong and unjustified, and we haven't heard that from him." On Monday, Cameron said the United Nations was "right" to condemn an air strike near a school in Rafah on Sunday which killed 10 people but would not say whether he thought it was a "criminal" act. Downing Street said Cameron regretted Warsi's decision, and added: "Our policy


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has always been consistently clear - the situation in Gaza is intolerable and we've urged both sides to agree to an immediate and unconditional cease-fire." Finance minister George Osborne called her resignation "disappointing and frankly unnecessary". "The British government is working with others in the world to bring peace to Gaza and we do now have a tentative cease-fire which we all hope will hold," he added. Warsi's resignation drew praise on Twitter from some Labour MPs. "Very courageous of my brave friend @SayeedaWarsi to resign over this Government's inexplicable silence and total weakness on the Gaza crisis," wrote Sadiq Khan, Labour's lead spokesman on justice. Meanwhile, London Mayor Boris Johnson, seen as a possible future successor to Cameron, said after Warsi's announcement that events in Gaza were "utterly horrifying and unacceptable". "I cannot for the life of me see why this is a sensible strategy," Johnson said on his show on London radio station LBC. "It is disproportionate, ugly and tragic and will not do Israel any good in the long run."


Obsolete power system: Ministry not aware of funding requirements August 06, 2014

MUSHTAQ GHUMMAN

Ministry of Water and Power is unaware of the precise funding requirements for revamping the obsolete transmission and distribution system which, according to Secretary Water and Power, Nargis Sethi, is unable to endure load beyond 15,000 MW. On August 5, 2014 Prime Minister Nawaz Sharif directed Ministry of Water and Power to expedite up-gradation of country's electricity transmission and distribution system so that additional power generated from ongoing and new projects is smoothly distributed and line losses are controlled. According to power sector analysts, billions of dollars investment is needed to revamp the transmission and distribution system. Power sector consumers pay billions of rupees annually to Discos to make up losses which relate to incompetence of power sub-sectors. Finance Minister Senator Ishaq Dar, who recently constituted a committee for preparation of an integrated energy policy under the chairmanship of Minister for Planning, Development and Reforms, Ahsan Iqbal, advised this correspondent to contact Minister for Water and Power, Khawaja Asif or Secretary Water and Power, Nargis Sethi to get actual funding requirement for up-gradation of transmission and distribution system. The Finance Minister did not respond when informed that the Minister and Secretary had not responded to such queries by the media. Ministry of Water and Power's spokesman said the team dealing with this subject is in China and promised to get authentic figures from them once they are back. Presently, power sector losses are about 17.55 percent but Nepra allowed Discos to pass on only 12.82 percent losses to consumers. The Economic Co-ordination Committee (ECC) of the Cabinet in its meeting on May 28, 2014 directed Nepra to pass on the entire loss to consumers saying that it is not possible for


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Discos to comply with the targets set by Nepra against average T&D losses of 17.55 percent. Ministry maintained that Discos will not be able to achieve a target of 12.82 percent losses and estimates that these accounted losses would add Rs 45 billion to the circular debt. Discos submit their system investment plans to Nepra in tariff petitions but they have never implemented these plans citing different reasons. The source said losses in the transmission and distribution system are higher in Sindh, Balochistan and KPK as compared to Punjab.


India lashes WTO, defends decision on failed trade deal August 06, 2014

India defended on Tuesday its scuttling of a landmark world-wide trade deal, saying it needed to take a tough stand at the WTO to ensure survival of its impoverished farmers. Trade Minister Nirmala Sitharaman also lashed out at the World Trade Organisation (WTO), accusing it of foot-dragging on negotiations to approve India's stockpiling of food. India's new right-wing government last week refused to ratify the long-sought global deal on streamlining customs rules, despite WTO members agreeing to the accord at a meeting in Bali last year. The Trade Facilitation Agreement, the first big global trade reform in years, needs the agreement of all 160 WTO members. Separately, a Business 20 group representative said failure to ink the pact could mean loss of an $820-billion injection to global gross domestic product, the Press Trust of India reported. The B20, established in 2010, gives policy proposals on behalf of the international business community to the G20 group of advanced and developing nations. "We have to be aware of the opportunity cost (from losing the Bali agreement)," said Australian B20 Sherpa Robert Milliner in New Delhi where he attended a preparatory meeting for a November G20 summit. "The estimate is that the Bali agreement could add $820 billion to global GDP and 16 million jobs," Milliner said. India insists the trade deal should be concluded as a "package" alongside a permanent agreement on stockpiling food to feed its millions of poor people. "India stood firm on its demands despite immense pressure," Sitharaman told parliament as lawmakers thumped their desks in approval. "India is committed to protecting the interests of our farmers against all odds," said Sitharaman, whose government came to power in May. "A permanent solution on food security is a must for us and we cannot wait endlessly in a state of uncertainty while the WTO engages in an academic debate on the subject of food security which is what some developed countries seem to be suggesting." 'Suicide and starvation' - India's stand sparked widespread international condemnation. But Sitharaman said she was confident New Delhi can persuade WTO members "to appreciate the sensitivities of India and other developing countries and see their way clear to taking this issue forward". US Secretary of State John Kerry told Prime Minister Narendra Modi during talks last week that India's position sent the wrong message on opening up the country's economy.


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India, which has sought since independence to eradicate hunger, buys grain at above-market prices from farmers and sells the food at subsidised prices to hundreds of millions of poor. The stockpiling is popular with poor voters in the world's largest democracy, but wealthy nations say the policy distorts global markets. Finance Minister Arun Jaitley said if the government backed down on its stand, hundreds of thousands of farmers faced suicide and starvation. Jaitley said India must be allowed to continue buying food from farmers - who cannot compete at the global level with government-backed US and European farmers - without fear of a WTO challenge. "Our farmers will be reduced to starvation and suicide. We can't be a party to that," he told the NDTV network Monday. WTO members gathered in Geneva last week for what was envisioned as a rubber-stamp approval of the customs deal. When the Bali deal was struck, WTO members agreed on a "peace clause" to allow India's food stockpiling with no penalties until a "permanent" solution by 2017. But Jaitley said lack of progress on stockpiling negotiations meant it was unclear when a permanent solution would be found.


Ecclestone relieved at bribery trial deal August 06, 2014

Bernie Ecclestone says he is relieved to be back running Formula One but feels "a bit of an idiot" after settling his bribery trial in Germany on Tuesday. The 83-year-old F1 supremo was back at his desk in London hours after walking out of the court in Munich, his case brought to a premature end after the British billionaire arranged to make a $100 million (75-million-euro) payment. In an interview with Britain's Press Association he said. "The bottom line is it's been three-and-a-half years of aggravation, travelling, meeting lawyers, and God knows what else, so it is good it is out of the way. "This trial has been going on for two days a week and it was going to go on until October. "When you're trying to run businesses it's not easy trying to resolve things when you're dealing with lawyers." He continued: "In the end what has happened today is good and bad - the good is the judge more or less said I was acquitted, and they (the prosecution) really didn't have a case. "So I was a bit of an idiot to do what I did to settle because it wasn't with the judge, it was with the prosecutors. "Anyway, it's done and finished, so it's all right. I'm contented, it's all fine. "This now allows me to do what I do best, which is running F1. "Another three months out would have been bad. I've been working weekends to catch up with what I've been missing during the week. "I've not really noticed, but it's probably taken its toll a little bit." Ecclestone went on trial in April on charges of paying a $44-million bribe to a Bavarian state bank executive for help in maintaining his four-decade grip on F1. A settlement is allowed in German criminal cases if the prosecution, the aggrieved parties and the court agree. News of the agreement drew angry condemnation of the "buy-out" legal proviso in Germany.



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THE RUPEE: upward trend August 06, 2014

The rupee, somehow, managed to recover some losses against the dollar on the money market on Tuesday, dealers said. The rupee appreciated by seven-paisa in relation to the dollar for buying and selling at Rs 98.81 and Rs 98.83 respectively, they said. INTERBANK MARKET RATES: OPEN MARKET RATES: The rupee held the overnight level in terms of the dollar for buying and selling at Rs 98.70 and Rs 98.90 respectively, while it did not show any change versus the euro for buying and selling at Rs 132.00 and Rs 132.25, they said. In the second Asian trade, the dollar was stuck below a 10-1/2 month peak against a basket of currencies on Tuesday, taking a breather after US jobs data last week dampened speculation of an earlier-than-expected interest rate rise by the Federal Reserve. The dollar index held steady at 81.299, staying below a high of 81.573 touched last Thursday, its highest level since mid-September of last year. The dollar was trading against the Indian rupee at Rs 60.83, the greenback was at 3.1850 in terms of the Malaysian ringgit and the US currency was available at 6.1750 versus the Chinese yuan. Interbank buy/sell rates for the taka against the dollar on Tuesday: 77.50-77.50 (previous 77.50-77.50). Call Money Rates: 06.50-08.25 percent (previous 06.50-08.25 percent).

======================== Open Bid Rs 98.70 Open Offer Rs 98.90 ======================== Interbank Closing Rates: Interbank Closing Rates For Dollar on Tuesday. ======================== Bid Rate Rs 98.81 Offer Rate Rs 98.83 ======================== RUPEE IN LAHORE: The Pak rupee remained under pressure in relation to the foreign currencies on the open currency markets of Lahore on Tuesday. According to the money changers, the dollar resumed trading at Rs 99.00 (buying) and Rs 99.15 (selling) against Rs 98.70 and Rs 99.20 of Monday. In the wake of fresh buying, the greenback appreciated its worth by 35-paisa on buying side at Rs 99.05 and 10-paisa on selling side at Rs 99.30 in relation to the local currency. Likewise, the British pound improved its worth against the Pak rupee. Pound Sterling was purchased and sold at Rs 166.20 and Rs 167.00 as against Rs 166.00 and Rs 167.00 on Monday. RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against the dollar on the open


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currency markets of Islamabad and Rawalpindi here on Tuesday. The dollar opened at Rs 98.50 (buying) and Rs 98.60 (selling) against same last rate. It did not observe further change in the second session and closed at Rs 98.50 (buying) and Rs 98.60 (selling). Pound Sterling opened at Rs 165 (buying) and Rs 165.50 (selling) against same last rate. It closed at the same rate without further change by the end of evening session.


Sugar export: SBP reduces advance deposit requirement August 06, 2014

RIZWAN BHATTI

In order to facilitate the exporters, State Bank of Pakistan (SBP) while extending the shipment period for sugar by 45-days has announced to reduce advance deposit requirement from 25 percent to 15 percent with immediate effect. According to SBP EPD Circular Letter No 07 2014 issued last week, following Economic Co-ordination Committee (ECC) of the Cabinet's decision dated July 4, 2014 conveyed to State Bank of Pakistan by Ministry of Commerce vide their Office Memorandum No 7(2)/2012-E-III dated July 11, 2014, the central bank has amended it previous circular, issued in April this year, for sugar export. As per ECC decision, shipment period for export of sugar has been extended from 45 days to 90 days with retrospective effect from 27th March, 2014 and now exporters can dispatch their sugar shipments through sugar mills latest by October 31, 2014. Accordingly, shipment period for export of sugar will be 90 days from the date of issuance of SBP approval letter or by October 31, 2014 whichever comes earlier. Further, shipment period of 45 days for the export of sugar on the basis of the earlier SBP approvals issued in the light of the to EPD Circular Letter No 02/EPP.1 (51)-2014 will also stand extended to 90 days. Following the ECC decision, SBP has also announced to reduce advance deposit requirement for sugar export by 10 percent. With this amendment, the requirement for advance deposit has been reduced from 25 percent to 15 percent with immediate effect. Sugar mills can export commodity from now onwards against irrevocable letter of credit or a contract with 15 percent non-refundable advance payment, which will be forfeited in favour of Government of Pakistan in case of non-performance. According to SBP, all other terms and conditions of the above mentioned EPD Circular Letter No 02/EPP.1 (51)-2014 issued for sugar export shall remain unchanged. SBP has asked all authorised dealers to bring the same to the notice of all their constituents to facilitate the exporters. Sugar industry has welcomed the ECC and SBP decision and said that these types of measurers would provide some cushion to the mills to offload their stock before staring new crushing


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season. They said that still hundreds of tons sugar stocks are lying at sugar mills' warehouses for domestic and export purposes, while new crushing season is going to start in next two months.


Presence of former ministers in body: AGP, PAC members at daggers drawn August 06, 2014

WASIM IQBAL

Auditor General of Pakistan (AGP) termed the proceedings of National Assembly's Public Accounts Committee (PAC) under the chairmanship of any former federal minister against the set international auditing and accounting standards and announced to boycott the future committee meetings. The PAC met with Syed Khurshid Ali Shah in the chair to discuss the audit paras of Ministry of Foreign Affairs on Tuesday. Auditor General of Pakistan Muhammad Akhtar Buland Rana opined that the audit reports of Ministry of Foreign Affairs for year 2009-10, 2010-11 and 2011-12 relate to the previous government of the Pakistan Peoples Party. Therefore, it is inappropriate that a chairman or convenor of the PAC should discuss such audit reports in the committee which are related to the previous government. He further showed his distrust on four former ministers who are members of the PAC on the grounds that most of the audit reports which have been laid or will be laid in the PAC for discussion relate to the period in which they served as ministers. Chairman Syed Khurshid Shah, Naveed Qamar, Sheikh Rasheed Ahmad and Shafqat Mahmood served as ministers in previous governments. In his arguments, he said that the public accounts committee in British Parliament discusses the audit reports of current fiscal year because of the continuity of democratic process and opposition leader in British Parliament is the head of parliamentary oversight. Auditor General plays a key role in parliamentary oversight and parliamentary accountability in British Parliamentary System. He further said, "Accountability process is acceptable to all when it is transparent and impartial. This could be possible only if audit reports and members PAC do not have any conflict of interest. In other words, the reports laid for discussion in the PAC must not be related to the tenure of any former minister." It is international standards, he added. He further urged that no person can judge his own case. Citing example, he said that judges in the courts of law keep themselves away from such cases where they find any sort of personnel involvement. "We have drawn the higher authority's attention towards this situation in written. We have further requested the PAC to give us opportunity to arrange an exclusive session covering all the issues, but the PAC secretariat did not respond to the request," he added. The statement of the AGP sparked resentment among the members of the PAC, who showed full


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confidence in the chairmanship of Syed Khurshid Ali Shah. They termed distrust of AGP on ruling of the PAC unfounded and against the parliamentary norms. The committee held in-camera meeting and discussed the behaviour of the AGP. Later, Khurshid Shah held a meeting with Speaker National Assembly Sardar Ayaz Sadiq and discussed various options, well-placed sources revealed. Earlier, in his defence Syed Khurshid Shah said he knew why the AGP made such a statement, but he would give the statement after listening to his recorded statement. However, former Petroleum Minister Syed Naveed Qamar showed his utter displeasure and said that AGP's statement was a breach of privilege of members committee as he showed full confidence in the committee when its members took oath. He termed the statement as revenge against the PAC for initiating proceedings against the AGP for illegally increasing his own perks and privileges. He asked the AGP to withdraw his statement or face the consequences. He further said it was strange that he showed distrust in the PAC after spending one and half years in PAC. Arif Alvi endorsed the statement of Naveed Qamar and said that the PAC was a parliamentary body and its decision could not be challenged in any court of law or by any bureaucrat. They are public representatives and answerable to the parliament. He further said the proceeding against the AGP was kept in camera by two members committee, but he made a public statement which shows his personal grudge. Other members of the committee also fully supported and backed the chairman and convenors of the sub-committees.


Treason trial: prosecution witness fails to respond to question August 06, 2014

KHUDAYAR MOHLA

A special court trying former army chief and President Pervez Musharraf under Article 6 of the Constitution on Tuesday adjourned the hearing of case till August 6 (today). A three-member bench led by Justice Faisal Arab and comprising Justice Tahira Safdar and Justice Yawar Ali resumed the hearing of Musharraf's treason trial after a month. Defence counsel Dr Farogh Nasim cross-examined a prosecution witness, Khalid Rasool, who had recorded his statement before the court during the last hearing. Khalid Rasool was appointed Deputy Director in Federal Investigation Agency (FIA) on November 19, 2013 and was inducted in the team investigating the promulgation of emergency in the country on November 3, 2007. During the last hearing of the case on July 9, 2014, Khalid Rasool submitted that being an investigation team member he gathered relevant documents from the concerned departments and then handed them over to the head of the investigation team, Khalid Qurashi. On Tuesday, the defence asked him to identify about the circle of FIA or in the police station where a complaint against Pervez Musharraf was lodged. He, however, failed to answer that question.


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The prosecutor, Mohammad Akram Sheikh, told the court that the matter in hand has nothing to do with the registration of the complaint in a police station or in a circle of the FIA. To which, the counsel for Musharraf urged the court to stop the process of cross-examination at this stage, saying it needs to be decided whether or not a complaint under Article 6 has to be registered before further adjudicating the matter.


World Bank pledges millions to Ebola fight August 06, 2014

The World Bank has pledged $200 million to help contain the deadly Ebola virus reaping panic across west Africa, as Nigerian authorities say a doctor in Lagos has contracted the disease, the second case in the sprawling city. The confirmation that a fourth doctor in the region had developed Ebola came Monday as fear and anger about the dead being left unburied in Liberia's capital Monrovia brought protestors into the streets there. Meanwhile, Sierra Leone's president said that the regional epidemic threatened the "very essence" of the nation.


Egypt to dig 'new Suez canal' at cost of $4 billion August 06, 2014

President Abdel Fattah al-Sisi launched Tuesday the construction of a $4 billion "new Suez Canal" that aims to speed up traffic along the existing waterway and boost Egypt's battered economy. The project foresees the creation of one million jobs at a time when Egypt is struggling to recover from more than three years of political turmoil since the ouster of long-time autocrat Hosni Mubarak. Sisi, accompanied by government ministers and army generals, set an ambitious target of digging the new canal, which would run parallel to the original Suez Canal built 145 years ago.



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Man held over 'bomb hoax' on Qatar-UK flight August 06, 2014

British police on Tuesday arrested a man suspected of making a hoax bomb threat aboard a Qatar Airways plane that caused it to be escorted down by a military fighter jet. A Royal Air Force (RAF) Typhoon guided the plane, which was travelling from Doha with 282 people on board, to Manchester airport in north-west England. Witnesses on board said armed police entered the aircraft and escorted the suspect off with his hands on his head. "A 47-year-old man from the northwest (of England) has been arrested on suspicion of making a bomb hoax and remains in police custody for questioning," said Chief Superintendent John O'Hare of Greater Manchester Police. "A full search of the aircraft has now finished and nothing suspicious was found. "The incident arose when the pilot received information about a possible device on board the plane, having been handed a note from a passenger."


Index inches up August 06, 2014

After a bearish session, Karachi stock market on Tuesday closed higher supported by lower inflation and strong OGDCL earnings. The benchmark KSE-100 index gained 28.58 points to close at 29,676.41 points up from 29,647.83 points. "Stocks closed higher after the CPI data for July 2014 stood at 7.88 per cent YoY and strong earnings of the OGDCL, depicting a 37 per cent profit after tax," said Ahsan Mehanti, Director at Arif Habib Securities. He said that institutional interest in oversold stocks after foreign interest, improved DAP sales data for July-14 and speculations ahead of major announcements due this week played a catalyst role in bullish sentiments at KSE despite concerns for political noise on outcome August 14 march call by political leaders against general election rigging. During the intra-day trading, the index reached 29,852 points highest and 29,621 points lowest level. Despite a bullish trend, the volume at the ready counter decreased to 132.767 million shares compared to 223.875 million shares in the previous session. The market capitalisation surged by Rs 13.35 billion to Rs 7.005 trillion against previous Rs 6.992 trillion. Trading took place in 346 companies, of which 151 closed in green zone, 165 in red, while share price of 30 companies were remain unchanged. According to Samar Iqbal, Assistant Vice President Equity Sales Topline Securities (Pvt) Ltd, after opening on a positive note the market remained ranged bound as investors are still confused on the developing local political situation.


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The benchmark index closed marginally positive by 0.10 per cent, the volume declined to 133 million shares and value also decreased to $78 million, she added. The PPL remained active after announcing discovery in one of its fields, she said and added that the OGDCL and ABL announced better earnings and payouts while EFOODS earnings were below expectation. Among top 10 volume leaders, six companies recorded a negative trend. Askari Bank emerged the volume leader with 16.76 million shares, down Re 0.17 to close at Rs 22.16. Lafarge Pak stood second and gained Re 0.06 to close at Rs 15.53 on 11.23 million shares. Engro Fertilizer up by Rs 2.64 to close at Rs 55.76 on 5.9 million shares. Bank Al-Falah decreased by Re 0.29 to Rs 27.29 on 5.7 million shares. With 5 million shares, Fauji Cement closed at Rs 20.19, down by Re 0.03. B O Punjab fell by Re 0.06 to close at Rs 8.61 on 4.11 million shares. Pak Petroleum gained Rs 2.16 to Rs 228.53 and its some 4 million shares were traded. With trading volume of four million, D G Khan Cement closed at Rs 82.46, down by Rs 2.30. Pak Elektron Ltd declined by Re 0.04 to Rs 28.65 on 3.9 million shares and Engro Foods recorded a positive and up by Re 0.52 to close at Rs 106.02 on 3.4 million shares. Siemens Pakistan and Indus Dying were the top gainers with Rs 33.99 and Rs 31.99 to close at Rs 1,194.00 and Rs 713.99, respectively. Rafhan Maize and Bata Pak were the top losers and declined by Rs 552.00 and Rs 169.33 to close at Rs 11,149.00 and Rs 3,299.67, respectively.


ISE index improves by 15.8 points August 06, 2014

Bulls dominated the proceedings at the Islamabad Stock Exchange (ISE) on Tuesday, where equities continued to move in upward direction with positive trend at the ISE amid increase in index. ISE Ten Index showed an improvement of 15.8 points as the ISE Ten Index moved from 4636.28 to 4652.08 points. The overall turnover amounted to 356,900 shares as compared to previous volume of 13,700 shares. Total 132 companies participated in buying and selling activity. Majority of stocks (70) closed in positive territory, 62 closed in negative territory, whereas no company remained pegged to its overnight levels. The volume of Lafrage Pakistan Cement was 355,000 shares. The volume of Bank of Punjab was 1,000 shares. The volume of Pakistan Petroleum was 600 shares.


BRIndex30 gains 93.58 points August 06, 2014

On Tuesday, BRIndex30 opened at 16,253.77. It touched an intraday high of 16,438.86 and an intraday low of 16,249.18 and closed at 16,347.35, which was 93.58 points or 0.58 percent higher than previous close. Total volume was 72,601,700, which was 54.68 percent of KSE All


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share volume and 75.42 percent of KSE 100 volume. The KSE All Share volume was 132,767,260 and KSE 100 volume was 96,266,840. BR Commercial Banks Index closed at 7,162.39 with a net positive change of 45.38 points or a percentage change of 0.64 and a total turnover of 39,842,900. BR Cement Index closed at 3,225.20 with a net negative change of -28.05 points or a percentage change of -0.86 and a total turnover of 29,172,100. BR Oil and Gas Index closed at 4,183.81 with a net positive change of 24.86 points or a percentage change of 0.6 and a total turnover of 9,314,800. BR Tech & Comm Index closed at 920.62 with a net negative change of -3.64 points or a percentage change of -0.39 and a total turnover of 7,305,100. BR Power Generation and Distribution Index closed at 4,444.66 with a net positive change of 31.6 points or a percentage change of 0.72 and a total turnover of 4,279,500.



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Business and Economy: Pakistan

Eighth Pakistan SME Forum to be held on August 19 August 06, 2014

All key stakeholders are collaborating to attend the 8TH Pakistan SME Forum 2014 organised annually by SHAMROCK Conferences International to be held on August 19, 2014 at local hotel, Karachi. This year's theme is "Bringing SMEs to the forefront of National Priorities." The State Bank of Pakistan (SBP), Commercial Banks, Small and Medium Enterprises Development Authority (SMEDA), Business Support Fund (BSF), Sindh Enterprise Development Fund, Chambers of Commerce and Industry, IFC-World Bank, Sindh Finance Ministry, Sindh Investment Board, Women Entrepreneurs and Union of Small and Medium Enterprises (UNISAME) will participate in the forum. Menin Rodrigues, Chairman, SHAMROCK Conferences International and convenor of the conference said, "We are expecting a good turnout of people, both at government and private levels, who are directly involved in addressing the issues pertaining to the sector in Pakistan and hope that the deliberations will result in a positive outcome for SMEs in Pakistan."-PR


Political uncertainty hitting economy: PIAF August 06, 2014

Pakistan Industrial and Traders Associations Front (PIAF) stressed the need for taking immediate steps to put an end to political uncertainty which is hitting hard the economy in general and the foreign investment in particular. Talking to various groups of businessmen, the PIAF Chairman Malik Tahir Javaid, Senior Vice Chairman Khamis Saeed Butt and Vice Chairman Amjad Ali Jawa said that the country would not be able to achieve economic target unless and until all the political forces in the country wage a joint struggle to overcome the challenges. Elaborating the point, the PIAF office bearers said almost all the countries that were far behind us in economic terms in 'sixties are now miles ahead of Pakistan and these countries could achieve this milestone because their people, their politicians and their private sector worked hand in hand and showed a rare maturity in their ranks. They said the private sector understands well the shortage of electricity and gas are the major reasons behind the low economic activity but it also believes that the present regime is working in right direction and if continuity in policies is ensured the days are not very far when Pakistan would become a lucrative investment destination.


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They said the PIAF has for a long been calling for a long-term solution to the ongoing electricity and it has reasons to give so much stress on this particular subject. They said the construction of large water reservoirs in the country would also help government get rid of shortage of gas. He said presently a huge quantity of gas is being used to produce power and with the completion of hydro projects, the gas thus saved would be available for industrial utilisation. The PIAF leaders said the hydro projects would not only be providing uninterrupted power supply to the industrial sector but also be ensuring availability of cheaper electricity that is a need of the hour. They said it is very unfortunate that neighbouring India is fast constructing dams on almost all available sites with jet speed but we could not initiate work on most feasible Kala Bagh Dam that has the capacity to cater to a major portion of our needs. They said: "We should identify the anti-Pakistan elements in our ranks that always put hurdle in this mega project of vital national importance. Had the Dam been completed a few years ago the size of the economy would have been doubled today."


Political parties urged to join hands for economic revival August 06, 2014

Representatives of business community have urged leaders of all political parties and the rulers to give up their differences and join hands for raising the living standard of general public. The business community urged political leaders to play their active role for the betterment of the country instead of taking out processions and staging sit-ins. President All Karachi Industrial Alliance (AKIA), Mian Zahid Hussain, has called upon all political parties of the country to set aside their differences and jointly focus on national agenda for economic growth, as political unrest was hampering the national growth. Talking to newsmen at a reception hosted by President Korangi Association of Trade and Industry (KATI) Syed Farukh Mazhar, Hussain urged all political parties to join hands with private sector to put economy back on track. He opined that difference of opinion was part of the democratic system but national interests were first and foremost and should be held supreme. Syed Farukh Mazhar said that all political parties should work on a single agenda of economic revival and prosperity of the country as it is imperative for the future generations of Pakistan. He said that private sector was willing to do its share and ready to help revive the economy of the country. He further said that country could not afford anymore holidays.



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Activity at Karachi and Qasim ports August 06, 2014

The Karachi Port handled 125,752 tonnes of cargo comprising 118,338 tonnes of import cargo and 7,414 tonnes of export cargo including 4,471 loaded and empty containers during the last 14 hours ending at 0700 hours on Tuesday. The total import cargo of 118,338 tonnes comprised of 49,036 tonnes of containerised cargo; 1,612 tonnes of general cargo; 35,568 tonnes of bulk cargo: 31,573 tonnes of coal; 3,995 tonnes of soyabean meal and 32,122 tonnes of oil/liquid cargo. The total export cargo of 7,414 tonnes comprised of 3,084 tonnes of containerised cargo and 4,330 tonnes of oil/liquid cargo. As many as 4,471 containers comprising 3,443 containers import and 1,028 containers export were handled during the last 24 hours on Tuesday. The breakup of imported containers shows 1,183 of 20's and 1,125 40's loaded while nil of 20's and 5 of 40's empty containers, whereas that of exported containers shows 420 of 20's and nil of 40's loaded containers while 434 of 20's and 237 of 40's empty containers were handled during the business hours. There were four ships namely Kota Hening, Chembulk Singapore, stolt Endurance and IVS Magpie containers, oil tankers and general cargo respectively sailed out to sea during the reported period. There were four vessels viz. MOL Dignity, KMTC Mumbai, Express Kailash and Bunga Lavender carrying containers and oil tankers respectively currently at the berths. There were five ships namely MOL Dignity, Splendour, IVS Beachwood, Navios Ulysses and Da Yu Xia carrying containers, oil tanker, coal and general cargo sailed out to sea on Tuesday, while five ships namely KMTC Mumbai, Express Kailash, Melina, Chrisopigi Lady and Hua Qiang carrying containers, oil tanker and soyameal respectively are expected to sail on Wednesday. There was one vessel viz. Kota Kaya carrying containers due to arrive on Tuesday, while three vessels viz. Niara, Ever Radiant and Filia Glory carrying containers and coal respectively are due to arrive on Wednesday.

PORT QASIM

A cargo volume of 75,112 tonnes comprising 56,213 tonnes of import cargo and 18,899 tonnes of export cargo inclusive 2,675 loaded and empty containers (TEUs) was handled at Port Qasim during the last 24 hours on Tuesday. The total import cargo of 56,213 tonnes includes 12,097 tonnes of furnace oil; 7,277 tonnes of edible oil; 1,508 tonnes of rapeseed; 1,500 tonnes of chemical and 33,831 tonnes of containerised cargo. The total export cargo of 18,899 tonnes includes 8,987 tonnes of cement and 9,912 tonnes of containerised cargo. There were three ships namely CV MSC Messina, MV Navios Geminos and MV Bold World with containers, rapeseed and chemical sailed out sea on Tuesday morning. A total number of seven vessels viz. CV MSC Messina, CV Safmarine Ngami, MV Ikan Prang, MV Navios Geminos, MV Bold World, MT Chemroad Rose and MT Quetta currently occupied berths to load/offload containers, cement, rapeseed, chemical, edible oil and furnace oil respectively during the last 24 hours.


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As many as six ships namely CMA CGM Debussy, Al-Rain, Taurus, Soa Glory, FSL London and Chemroad Sea with containers, furnace oil, crude oil, edible oil and chemical are currently at the outer anchorage of Port Qasim. There were five vessels with containers, chemical, edible oil and furnace oil took berths at Qasim International Containers Terminal, Engro Vopak Terminal, FOTCO Oil Terminal and Liquid Cargo Terminal respectively on Monday. There are three ships namely CV CMA CGM Debussy, CV Al-Rain and MV Chemroad Sea with containers and chemical due to arrive on Tuesday.


Shipping Intelligence August 06, 2014

Karachi Shipping Intelligence report incorporating changes till 7 am on Tuesday (August 05, 2014).

============================================================================ VESSELS ON BERTH ============================================================================ Berth Ship Working Agent Berthing No Date ============================================================================ ALONG SIDE (BULK OIL PIER) ---------------------------------------------------------------------------- OP-I Chrisopigi Lady D. Petrol PNSC 03/08/2014 OP-II Bunga Lavender D. Chemical ALPINE 05/08/2014 OP-III Splendour D. HSFO GAC 03/08/2014 ---------------------------------------------------------------------------- ALONG SIDE (EAST WHARVES) ---------------------------------------------------------------------------- 1/2 Ivs Beachwood D. Coal EAST WIND 01/08/2014 2/3 Hua Qiang D. Meal COASTAL 20/07/2014 5 Jia Run D. Coal OC.WORLD 04/08/2014 ---------------------------------------------------------------------------- ALONG SIDE (P.I.C.T) ---------------------------------------------------------------------------- 6/7 X-Press Kailash D. L. Cnt NOT PROVIDED 05/08/2014 8/9 KMTC Mumbai D. L. Cnt U.M.A 04/08/2014 ---------------------------------------------------------------------------- ALONG SIDE (WEST WHARVES) ---------------------------------------------------------------------------- 24 Da Yu Xia D. Gen.Cargo COSCO 28/07/2014 ---------------------------------------------------------------------------- ALONG SIDE (K.I.C.T) ---------------------------------------------------------------------------- 26/27 MOL Dignity D. L. Cnt MOL PAK 04/08/2014 28/29 Melina D. L. Cnt NOT PROVIDED 04/08/2014 ============================================================================


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EXPECTED ARRIVALS ============================================================================ Name of Agents Arrival Import Export Vessels Name Date Tons Tons ============================================================================ CONTAINER (GEARLESS) ---------------------------------------------------------------------------- Eleni 1 EAST WIND 06/08/2014 600 Cnt 600 Cnt Ever Radiant GREEN PAK 06/08/2014 800 Cnt 900 Cnt MOL Premium MOL PAK 07/08/2014 1000 Cnt 1000 Cnt Cosco Osaka COSCO 14/08/2014 600 Cnt 600 Cnt ---------------------------------------------------------------------------- CONTAINER (GEARED) ----------------------------------------------------------------------------NIL ---------------------------------------------------------------------------- GENERAL CARGO ---------------------------------------------------------------------------- Amoy Forture AARAS-SH 06/08/2014 9,762 Steel Nil Han Feng AARAS-SH 06/08/2014 Nil 272 GC ---------------------------------------------------------------------------- FERTILIZER ---------------------------------------------------------------------------- Universal Barcelona BULK-SH 06/08/2014 38,500 DAP Nil ---------------------------------------------------------------------------- COKE ---------------------------------------------------------------------------- Audacious CRYSTAL SEA 05/08/2014 16,500 Nil ---------------------------------------------------------------------------- COAL ----------------------------------------------------------------------------NIL ---------------------------------------------------------------------------- LOADER ---------------------------------------------------------------------------- Nadeen ARGONAFTIS 06/08/2014 Nil 15,600 Cement ---------------------------------------------------------------------------- OIL TANKER ----------------------------------------------------------------------------NIL ============================================================================ SHIP DEPARTURES ============================================================================ Vessel Name Port Name Agent LOA DepartureDischarging Date ============================================================================ Chembulk Singapore N/A EAST WIND 0 Nil 05/08/2014 Stolt Endurance N/A ASIA MARINE 174 AV Gas Oil 04/08/2014 Navios Ulysses N/A AQUA MARITIME 190 Coal 04/08/2014 IVS Magpie N/A OC.WORLD 169 GC 04/08/2014 Kota Hening N/A NOT PROVIDED 0 Container 04/08/2014 ============================================================================ MISCELLANEOUS VESSELS EXPECTED OFF PORT ============================================================================


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Vessel Name Type Agent Expected ArrivalBerth No Date ============================================================================ Santa Rosa Container Ships NOT PROVIDED Not Allocated 03/08/2014 Development Way General Cargo NOT PROVIDED Not Allocated 01/08/2014 Blue Balance General Cargo NOT PROVIDED Not Allocated 03/08/2014 Kaghan General Cargo NOT PROVIDED Not Allocated 04/08/2014 Ghetty Bottiglierl Oil Tanker ALPINE Not Allocated 30/07/2014 Songa Eagle Oil Tanker ALPINE Not Allocated 05/08/2014 ============================================================================ PORT QASIM INTELLIGENCE ============================================================================ Berth Vessel Working Agent BerthingDate ============================================================================ MULTI PURPOSE TERMINAL ---------------------------------------------------------------------------- MW-4 Ikan Parang Cement Global Maritime 01.08.2014 ---------------------------------------------------------------------------- LIQUID CARGO TERMINAL ---------------------------------------------------------------------------- LCT Chemroad Sea Chemical Alpine Marine 04.08.2014 ---------------------------------------------------------------------------- QASIM INTERNATIONAL CONTAINER TERMINAL ---------------------------------------------------------------------------- QICT MSC Messina Containers MSC Pak 04.08.2014 ---------------------------------------------------------------------------- 2nd CONTAINER TERMINAL ---------------------------------------------------------------------------- QICT Safamine Ngami Containers - 04.08.2014 ---------------------------------------------------------------------------- IRON ORE & COAL BERTH ---------------------------------------------------------------------------- IOCB NIL ---------------------------------------------------------------------------- FOTCO ORE & COAL BERTH ---------------------------------------------------------------------------- FOTCO MT Quetta Furnace Oil PNSC 04.08.2014 ---------------------------------------------------------------------------- GRAIN & FERTILIZER TERMINAL ---------------------------------------------------------------------------- FAP Navios Germinus Rape Seed WMA Ship Care 30.07.2014 ---------------------------------------------------------------------------- ENGRO VOPAK TERMINAL ---------------------------------------------------------------------------- EVTL Bold World Chemical Alpine Marine 04.08.2014 ============================================================================ DEPARTURES ============================================================================ Vessel Commodity Ship Agent Departure Date ============================================================================ Navios Gemions Rape Seed WMA Ship Care 05.08.2014


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MSC Messina Containers MSC Pak 05.08.2014 Bold World Chemical Alpine Marine 05.08.2014 ---------------------------------------------------------------------------- VESSELS AT OUTER ANCHORAGE ---------------------------------------------------------------------------- Taurus Furnace Oil PNSC - Sea Glory Crude Oil Alpine Marine - FSL London Edible Oil Alpine Marine - Chemroad Sea Chemical Alpine Marine - CGM Debussy Containers CGM - Al Rain Containers UASC - ============================================================================ EXPECTED ARRIVALS ============================================================================ CGM Delussy Containers CGM Pak 05.08.2014 Al Rain Containers UASC 05.08.2014 Chemroad Sea Chemical Alpine Marine 05.08.2014

Frequently delayed flights: UK aviation authorities warn PIA again August 06, 2014

IQBAL MIRZA

Yet another warning has been received by Pakistan International Airlines from the United King aviation authorities for operating many delayed flights to London Heathrow Airport from the start of the season. Sources in PIA informed that the UK aviation authorities have warned the management of PIA over the frequent delays of their flights from Lahore, Karachi, and Islamabad to London Heathrow Airport from the start of the season till end of July. 'PIA flights arrive late more than 15 minutes from their scheduled time at Heathrow Airport. It has been found that 93.1 percent of Pk-787 operations from Karachi to Heathrow were more than 15 minutes late while 64.06 percent of Pk-785 arrivals to Heathrow from Islamabad were outside 15 minutes,' said a source. The source added that the management of PIA was not realising that those massive delays in operations hurt the operations of other airlines at Heathrow. 'The UK aviation authorities clearly told the PIA management that this delay of PIA flights created issues for them like non-availability of parking and landing space for other airlines,' added the source. The UK aviation authorities had asked PIA management to pay attention to this issue so that it could be resolved, said the source. It is worth adding here that the last time PIA got such kind of warning from UK aviation authorities was during the London Olympics 2012. 'At that time the airline management improved overall punctuality during the Olympics with remarkable regularity to outgo the immense pressure of the uncompromising warning issued by the London Airport Co-ordination


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(LAC) to PIA before the start of the Games,' said the source. To achieve this daunting task the management took Pilots' Association on board and studied the increase in speed to meet punctuality while remaining in prescribed safety limits. However, this time around neither the said association is co-operating in these issues due to lack of technical and professional capabilities nor the management is taking things seriously due to much trumpeted privatisation hype. The source said the PIA had to maintain regularity and punctuality on the occasion of Olympics with extreme caution to avert the denial of landing rights at Heathrow. 'The then management took the warning quite seriously and managed the old issue of flight delays at PIA. This can be gauged by the fact that only two out of 27 flights operated to London during the said period from Karachi, Lahore, and Islamabad were delayed,' said the source. PIA during that period had also improved its overall punctuality for on time departures from 60 to 85.8 percent.


Lack of automation for IT deduction at source: GPO incapable to differentiate between filers, non-filers August 06, 2014

The General Post Office (GPO) being withholding agent would not be able to implement the Federal Board of Revenue (FBR) 'Active Taxpayers List for Income Tax Deduction at Source' at all its 1200 sub-offices for charging enhanced rate of withholding tax on vehicles from those not part of the list or non-filers of returns. Sources told Business Recorder here on Tuesday that the GPO's ability to differentiate between the filers and non-filers of returns has been pinpointed by Chief Commissioner RTO-II Lahore in a communication to the FBR. Due to lack of automation at the sub-offices of the GPO, the implementation of 'Active Taxpayers List for Income Tax Deduction at Source' may not be possible at the GPOs across the country. The General Post Office (GPO) also acts as a withholding agent and collects tax under section 234 of the Income Tax Ordinance 2001. GPO officials pointed out that there are approximately 1200 sub-offices of GPO in the country and most of them are not automated. Therefore, the implementation of Active Taxpayer List is not possible at all the sub-offices. RTO-II Lahore has suggested that a mechanism viz-a-viz verification of filer may be devised to cater to the situation where no computers are available with the withholding agents eg Post Offices in peripheries, Chief Commissioner RTO-II Lahore added. The 'Active Taxpayers List for Income Tax Deduction at Source' contains names, Computerised National Identity Card (CNICs) numbers and National Tax Numbers (NTNs) of the Active Taxpayers on the income tax side. The FBR has published the 'Active Taxpayers List for Income Tax Deduction at Source' on the basis of Tax Directory for Tax year 2013 to be communicated to


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banks and other withholding agents for deduction of higher rates of withholding taxes from un-registered persons. The names of persons not mentioned in the Tax Directory are non-filers. The FBR has not disclosed the information about the tax paid to the withholding agents, but only CNICs/NTNs have been mentioned in the list. Active Taxpayer List (ATL) will be updated by the Federal Board of Revenue (FBR) on fortnightly basis and it will be amended if the taxpayer has filed the tax return or statement under Income Tax Ordinance, 2001.


Engro Foods posts Rs 329 million earnings in 1H2014 August 06, 2014

Engro Foods (EFOODS) posted 1H2014 earnings of Rs 329 million (EPS Rs 0.43), 70 percent lower than 1H2013 profits of Rs 1.1 billion (Rs 1.45 per share). According to Topline Securities, during the period, sales revenue increased by meager 4.9 percent to Rs 19.9 billion on the back of low volumetric sales despite price increase, while low volumes hit company's ability to fully pass the rising costs. As a result, gross margins dipped from 28 percent in 1H2013 to 20.4 percent in 1H2014. As a result, gross profits declined by 23.5 percent to Rs 4.1 billion. However, 12.2 percent lower distribution costs to Rs 2.3 billion provided some relief to the falling profits. During 2Q2014, EFOODS reported profits of Rs 110 million (EPS Rs 0.14) compared to Rs 219 million (EPS Rs 0.29) in 1Q2014, down 50 percent. During the quarter, revenues of the company declined by 2.2 percent to Rs 9.8 billion but gross margins increased by 10bps to 20.5 percent. As a result, gross profits of the company declined by 1.7 percent to Rs 2 billion. However, major hit to the profits came from 18.1 percent higher distribution cost to Rs 1.2 billion and 38.6 percent increase in finance cost to Rs 351 million. On year-on-year basis, 2Q2014 profit of EFOODS is 76 percent lower than 2Q2013 profit of Rs 460 million (EPS Rs 0.6). During the quarter, sales increased by 5.5 percent in 2Q2014 but 14 percent increase in cost of sales to Rs 7.8 billion resulted in 18 percent fall in gross profits.


McDonald's clarification August 06, 2014

Apropos a news item "Chinese co banned for supplying expired meat" carried by Business Recorder on August 5, McDonald's Pakistan has issued the following clarification: "McDonald's Pakistan does not receive any products from the factory in question that is Husi Shanghai. Our


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products only come from Husi Beijing factory which has been cleared by FDA and it does not have any issues whatsoever. Further, we import a majority of our chicken products from Mac Food Malaysia. "All of our meats are 100 percent certified Halal, and are sourced only from internationally accredited and trusted suppliers. Our Halal certificates are featured prominently in our restaurants. "Our customers expect the highest quality from us, and we are dedicated to providing them with that. We always follow the highest food safety practices business, and we demand all our suppliers do the same. We are proud of our reputation and our long standing record of committing to the highest standards of quality, food safety, and imposing the same level of high standards on all our suppliers."


Presence of former ministers in body: AGP, PAC members at daggers drawn August 06, 2014

WASIM IQBAL

Auditor General of Pakistan (AGP) termed the proceedings of National Assembly''s Public Accounts Committee (PAC) under the chairmanship of any former federal minister against the set international auditing and accounting standards and announced to boycott the future committee meetings. The PAC met with Syed Khurshid Ali Shah in the chair to discuss the audit paras of Ministry of Foreign Affairs on Tuesday. Auditor General of Pakistan Muhammad Akhtar Buland Rana opined that the audit reports of Ministry of Foreign Affairs for year 2009-10, 2010-11 and 2011-12 relate to the previous government of the Pakistan Peoples Party. Therefore, it is inappropriate that a chairman or convenor of the PAC should discuss such audit reports in the committee which are related to the previous government. He further showed his distrust on four former ministers who are members of the PAC on the grounds that most of the audit reports which have been laid or will be laid in the PAC for discussion relate to the period in which they served as ministers. Chairman Syed Khurshid Shah, Naveed Qamar, Sheikh Rasheed Ahmad and Shafqat Mahmood served as ministers in previous governments. In his arguments, he said that the public accounts committee in British Parliament discusses the audit reports of current fiscal year because of the continuity of democratic process and opposition leader in British Parliament is the head of parliamentary oversight. Auditor General plays a key role in parliamentary oversight and parliamentary accountability in British Parliamentary System. He further said, "Accountability process is acceptable to all when it is transparent and impartial. This could be possible only if audit reports and members PAC do not have any conflict of


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interest. In other words, the reports laid for discussion in the PAC must not be related to the tenure of any former minister." It is international standards, he added. He further urged that no person can judge his own case. Citing example, he said that judges in the courts of law keep themselves away from such cases where they find any sort of personnel involvement. "We have drawn the higher authority''s attention towards this situation in written. We have further requested the PAC to give us opportunity to arrange an exclusive session covering all the issues, but the PAC secretariat did not respond to the request," he added. The statement of the AGP sparked resentment among the members of the PAC, who showed full confidence in the chairmanship of Syed Khurshid Ali Shah. They termed distrust of AGP on ruling of the PAC unfounded and against the parliamentary norms. The committee held in-camera meeting and discussed the behaviour of the AGP. Later, Khurshid Shah held a meeting with Speaker National Assembly Sardar Ayaz Sadiq and discussed various options, well-placed sources revealed. Earlier, in his defence Syed Khurshid Shah said he knew why the AGP made such a statement, but he would give the statement after listening to his recorded statement. However, former Petroleum Minister Syed Naveed Qamar showed his utter displeasure and said that AGP''s statement was a breach of privilege of members committee as he showed full confidence in the committee when its members took oath. He termed the statement as revenge against the PAC for initiating proceedings against the AGP for illegally increasing his own perks and privileges. He asked the AGP to withdraw his statement or face the consequences. He further said it was strange that he showed distrust in the PAC after spending one and half years in PAC. Arif Alvi endorsed the statement of Naveed Qamar and said that the PAC was a parliamentary body and its decision could not be challenged in any court of law or by any bureaucrat. They are public representatives and answerable to the parliament. He further said the proceeding against the AGP was kept in camera by two members committee, but he made a public statement which shows his personal grudge. Other members of the committee also fully supported and backed the chairman and convenors of the sub-committees.



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Company News: Pakistan

Askari General Insurance Company Limited August 06, 2014

Operating since 1995 as a public limited company, Askari Insurance enjoys the financial backing of Army Welfare Trust which is involved in finance, banking, production of consumer goods and services. About 23 companies from diverse backgrounds fall under the umbrella of AWT where a bulk of these companies is also listed on stock exchanges of the country. Also, Askari General Insurance is listed on Karachi, Lahore and Islamabad stock exchanges and stands as one of the leading companies of AWT. While providing the conventional insurance coverage like marine, motor and fire, the company also bears the capacity of providing specialised insurance coverage on various engineering risks. Also, the company claims to be the market leader in health insurance business. With a network of about 19 branches, the company maintains its presence in different areas of the country, with its head office based in Rawalpindi. ACQUISITION BY FAUJI GROUP In the history of AGICO, 2013 carries great significance. Followed by Askari Bank's acquisition by Fauji Group in 2013, a sizeable holding of AGICO has gone in the hands of Fauji Group through Askari Bank. CREDIT RATING In February 2014, JCR-VIS Credit Rating Company Limited upgraded the Insurer Financial Strength (IFS) rating of Askari General Insurance to 'A+' (Single A Plus) from 'A' (Single A) along with a stable outlook. According to JCR-VIS, holding of Fauji Group in Askari General Insurance will carry a positive impact on company's business volumes. Besides, backing by Fauji consortium, reinsurance arrangements with insurers having sound financial standing, consistency in profitability for the past three years and a conservative investment portfolio support the rating upgrade of the company, according to the press release issued by JCR-VIS. However, liquidity profile and capitalisation indicators have been highlighted as areas that still need to be improved. 1Q CY14: REVIEW OF FINANCIAL PERFORMANCE During the first quarter ended March 2014, the growth in underwriting income witnessed a downfall as it clocked in at Rs 55 million (down 10 percent year on year). Although net premiums posted a decent growth of 15 percent, the upsurge in net claims and other expenses gobbled up whatever gains the company achieved from increase in premiums. Claims ratio of the firm rose to 59 percent (1Q CY13: 50 percent) while the combined ratio shot up to 77 percent (1Q CY13: 70 percent). Thanks to strong investment flows that helped the bottom line to stay in decent health. Consequently, profit after taxation boasted an increase of 25 percent year on year. In terms of segments, motor insurance contributed the highest share of 62 percent, followed by accident and health (15 percent) and the rest 23 percent was contributed by miscellaneous, marine aviation and transport and fire and property damage segments. 2013: REVIEW OF FINANCIAL PERFORMANCE AGICO ended 2013 on a remarkable note by recording the highest ever profitability over the last ten years. Profit after taxation of the


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company clocked in at Rs 119 million, reflecting an increase of 61 percent from the corresponding period of last year. Strong underwriting income backed by robust growth in net premiums and healthy investment income sugar-coated bottom line growth. The claims ratio of marine, aviation and transport witnessed a significant upsurge from 18 percent in 2012 to 56 percent in 2013. Thanks to its small contribution to the insurance portfolio of AGICO, the underwriting result stayed on the safe side. Also, net claims ratio of the firm rose to 55 percent from 53 percent in the corresponding period of last year. Also, in line with historical trends, motor segment remained the major segment contributing a share of over 60 percent to the net premium revenues of the company. FUTURE OUTLOOK Last three years have been quite impressive for Askari General Insurance where profitability of the firm has continuously been on an upward trend. Also, the company has been able to bring down its claims ratio to 55 percent in 2013 from as high as 65 percent in 2009. Continuous improvement in claims and rising premiums will further lend a hand in boosting the profitability growth of the firm. On the operational front, the company has recently remodelled its executive support system to further enhance the efficiency of its operations, which is expected to positively contribute to its performance in a positive manner. As for the industry prospects, the insurance industry in Pakistan is lamenting over considerably low level of insurance penetration. However, this should be taken as an opportunity to move forward and expand the industry's market share as the rural population still remains untapped. Also, the industry needs to gear itself on the technological front. While some of the leading insurance companies have already started offering mobile insurance schemes, the rest of the insurers still need to get on the bandwagon to reach out to the rural mass through alternative distribution channels and micro-insurance and Takaful window are two key areas where the industry needs to spread out its wings. Lastly, the importance of creating awareness cannot be denied.

============================================================ Askari General Insurance - Financial Highlights ============================================================ Rs (mn) CY12 CY13 1QCY14 ============================================================ Net premium revenue 700 842 235 Net claims (373) (465) (138) Expenses (195) (220) (59) Net commission 34 50 17 Underwriting results 166 207 55 Investment income 55 65 22 General & administrative expenses (157) (147) (34) Profit after taxation 74 119 40 EPS (Rs) 1.91 3.07 1.03 ============================================================


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LG Electronics' net profit surges by 165 percent in Q2 August 06, 2014

LG Electronics Inc announced a 165 percent increase in second-quarter net profit compared with the same period last year, reflecting strong earnings from both the TV and mobile operations. LG reported second-quarter 2014 net profit of KRW 412 billion (USD 399.8 million) and operating profit of KRW 606 billion (USD 588.5 million), an increase of 26.5 percent year-over-year. Un-audited second quarter consolidated revenues of KRW 15.37 trillion (USD 14.93 billion) increased 7.7 percent from the previous quarter. The LG Home Entertainment Company saw steady performance with second-quarter revenues of KRW 5.09 trillion (USD 4.94 billion), a three percent increase quarter-over-quarter and almost unchanged from the same quarter 2013. Operating profit of KRW 154.5 billion (USD 150 million) was an increase of 64.9 percent from the same quarter last year as a result of better product mix and lower fixed costs. Demand for Ultra HD TVs in key markets will continue to drive LCD TV revenue growth. The B2B market, led by monitors and digital signage, also is expected to contribute to LG's growth in this segment. The LG Mobile Communications Company shipped a record-high 14.5 million smartphones in the second quarter, a 20 percent increase year-over-year with LTE products accounting for more than one-third of all LG smartphones sold this year. As a result, sales increased 16 percent from the same period last year to KRW 3.62 trillion (USD 3.51 billion), the highest since the first quarter of 2010. The mobile division's operating profit of KRW 85.9 billion (USD 83.4 million) in the second quarter put an end to three consecutive quarters of losses. Much of the success was due to the initial popularity of the LG G3 in the Korean market and strong sales of L SeriesIII smartphones. LG plans to continue its global rollout of the G3 and introduce more mass tier products in the second half, including variations of the LG G3, such as the recently announced G3 Beat, and additional L Series models. The LG Home Appliance Company reported strong sales in the Korean market with sales increasing 9 percent from the same quarter the previous year. Second-quarter revenue of KRW 3.03 trillion (USD 2.94 billion) was five percent lower compared with the same period last year due to unfavourable foreign currency exchange movement especially in developing markets. An improvement in cost structure resulted in the LG Home Appliance Company recording operating profit of KRW 97.8 billion (USD 95 million) and profit margin of 3.2 percent. LG expects revenues and profitability for home appliances to increase in the second half due to the launch of market-leading washing machine and refrigerator products and the effect of cost reductions. The LG Air Conditioning & Energy Solution Company recorded steady sales of commercial air conditioners and new products such as dehumidifiers with revenues of KRW 1.64 trillion (USD 1.59 billion) and operating profit of KRW 164.2 billion (USD 159.4 million) in the second quarter. Despite slightly lower revenues than the same period last year, an improved product mix resulted in a profit margin of 10 percent in the second quarter, and second-half results are expected to


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benefit from increased demand in the Middle East, rollout of additional variable refrigerant flow (VRF) air conditioning products and stronger cost competitiveness in commercial air conditioners.-PR



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Company News: World

Bank of Cyprus completes 1 billion euro private share placement August 06, 2014

Bank of Cyprus, the island's largest lender, has completed a one billion euro ($1.34 billion) capital increase in a private placement to help it restructure following a haircut on deposits last year. BoC announced late Monday the successful placement of 4.2 billion new ordinary shares at a price per share of 24 euro cents. "Shares were allocated to a broad range of institutional investors from Europe, North America and Russia, including a number of international investors introduced by WL Ross & Co LLC and the European Bank for Reconstruction and Development," BoC said. Existing shareholders will be able to acquire up to 20 percent of the shares offered in the private placement scheme, with the initial allocation adjusted in line with their subscriptions. The increase will take the bank's core Tier 1 capital to 15.1 percent from its present level of 10.6 percent. BoC said the capital injection will help it restructure more quickly, withstand upcoming EU bank stress tests and help stimulate a recovery of the recession-hit Cyprus economy. "The success of the private placing demonstrates the confidence that international institutional investors have in the Bank's turnaround and the economic recovery in Cyprus, only a year after the bank exited resolution status," said BoC CEO John Hourican.


Credit Agricole profit plunges on Espirito Santo hit August 06, 2014

France's Credit Agricole took a 708 million euro ($950 million) hit from its stake in troubled Portuguese lender Banco Espirito Santo (BES), nearly wiping out its second-quarter net profit. Better-than-expected underlying earnings and stronger capital ratios helped lift Credit Agricole shares, however, as the bank moved closer to turning the page on an era of ill timed cross-border deals. Credit Agricole posted net income gains in 2013 after two straight years of losses, marked by a painful exit from Greece, provisions related to Italy and a withdrawal from riskier investment banking activities. "Today, the group (BES) must deal with the issues specific to the Espirito Santo family and which took place outside the sphere of the bank's corporate governance, and which were unknown to us," Credit Agricole Chief Executive Jean-Paul Chifflet told reporters.


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Portugal was forced to bail out BES over the weekend in a 4.9 billion euros rescue package that will see shareholders such as Credit Agricole, and junior bondholders hit with losses, while shielding senior creditors and depositors. Once Portugal's largest listed bank, BES, in which Credit Agricole has been a shareholder since 1991, has been brought to its knees by the implosion of the Espirito Santo business empire following revelations of financial irregularities. The bank had issued loans to family-owned companies and sold on the dynasty's debt to its customers leaving it horribly exposed after they filed for creditor protection. Credit Agricole, which is majority owned by a network of cooperative regional lenders and owns 14.6 percent of BES, said on Tuesday that second-quarter net income plummeted 97.5 percent to 17 million euros. Adjusted net income rose to 1.003 billion euros from 682 million a year earlier. Credit Agricole took a 502 million euro hit reflecting BES's losses and recorded a 206 million impairment charge on the value of the stake, which it wrote down to zero. Shares in Credit Agricole rose 5.1 percent to their highest since June 25, as underlying earnings beat expectations. Operating expenses were stable, while loan-loss provisions were down 19.6 percent, mainly due to an improvement at Italian consumer-loan unit Agos Ducato.

Copyright Reuters, 2014

Time Inc cuts full-year revenue forecast August 06, 2014

Time Inc, the largest magazine publisher in the United States, reported a fall in quarterly revenue, hurt by a decline in subscription revenue and newsstand sales, and cut its full-year revenue forecast. The publisher of Sports Illustrated, Time magazine and People is facing steadily declining circulation and advertising revenue - like Meredith Corp and News Corp - as consumers shift to reading on smartphones and tablets. This is Time's first earnings report following its spinoff from Time Warner Inc. Time publishes more than 90 titles and operates 45 websites, and gets more than half of its revenue from advertising. The company cut its full-year revenue forecast to $3.30-$3.37 billion from $3.35-$3.42 billion, citing a payment default by its second-largest wholesaler, the relocation of its headquarters and sale of Mexican publishing unit Grupo Expansion. Analysts on average were expecting revenue of $3.35 billion, according to Thomson Reuters I/B/E/S. Time posted a loss of $32 million, or 30 cents per share, for the second quarter ended June 30, compared with a profit of $75 million, or 69 cents per share, a year earlier. On an adjusted basis, the company earned 30 cents per share. Revenue fell 1.6 percent to $820 million. Subscription revenue fell 2 percent, while newsstand sales fell 13 percent. Advertising revenue rose about 3 percent. Analysts expected an adjusted profit of 16 cents per share on revenue of $821.3 million. The company's shares closed at $24.31 on Monday. The stock started trading publicly in June.



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Taxation: Pakistan

New two-tier ST regime for retailers: tax experts seek FBR clarification August 06, 2014

SOHAIL SARFRAZ

The retailers' operating under the turnover sales tax scheme or retail outlets/shops in commercial buildings without having centrally air-condition facility or not part of shopping plazas are not fully apprehending the new sales tax registration regime introduced through Finance Act, 2014. It was learnt on Tuesday that the sales tax experts of Karachi have approached Federal Board of Revenue (FBR) to seek clarification on issues raised under the new sales tax regime for retailers. They have raised questions on recently introduced new two-tier sales tax regime for retailers by Federal Board of Revenue. According to the details, the tax experts from Karachi have written a letter to the FBR seeking clarification from the FBR Member Policy Inland Revenue regarding sales tax regime for retailers introduced vide notification 689(I)/2014. Tax experts were of the view that by virtue of this scheme persons falling under five categories prescribed under rule 4 of the scheme are liable to operate under standard or applicable rate regime of sales tax. The persons other than these categories are however subject to sales tax payment at source through their electricity bills and do not requires to file sales tax returns. Tax experts have thoroughly gone through the regime and raised questions that require immediate response to understand it for educating the retailers for smooth operation of the scheme: Query 1: The retailers who are already registered under turnover sales tax system and do not fall within the five categories provided under rule 4, are they not required to file sales tax return any more? Should they apply for de-registration under section 21 of the Sales Tax Act since they would be subjected to payment of sales tax at source through electricity bills without filing of sales tax returns and requirement to maintain and retain sales tax record? Query 2: If a retailer outlet operates in a commercial building which is neither centrally air-conditioned nor a shipping plaza, which sales tax procedure is applicable to such retail shops? Tax experts further stated that if a wholesaler or registered retailer buys an item falling under the Third Schedule of the Sales Tax Act 1990 from a manufacturer after paying 19% GST, is this sales tax is his full and final discharge of sales tax liability and the said retailer would not be required to charge any further sales tax and will treat this item as exempt in the sales tax return to be filed. Tax experts have asked the FBR to issue immediate clarification on this issue so that retailers be educated and informed accordingly. The queries have also been sent to Federation of Pakistan Chamber of Commerce and Industry for intimation and necessary assistance, sources informed.


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IRS, PCS officers asked to submit declaration of assets by August 15 August 06, 2014

The Federal Board of Revenue (FBR) has directed all the officers of Inland Revenue Service (IRS) and Pakistan Customs Service (PCS) to submit their Declaration of Assets for the year ending June 30, 2014 by extended deadline of August 15, 2014. In this regard, the FBR has issued instructions to the field formations here on Tuesday. According to the FBR, tax authorities have referred to Establishment Division's O.M No 2/1/2013-D-4 dated 24.07.2014 on the said subject and to say that the date for filing of Declaration of Assets for the year ending June 30, 2014 has been extended to 15th of August, 2014 as against 31st July, 2014. These declarations are to be filed on the prescribed proforma available on the websitewww.fbr.gov.pk. All the officers of Inland Revenue Service (IRS) and Pakistan Customs Service (PCS) serving under your administrative control may be advised to submit their Declaration of Assets for the year ending June 30, 2014 latest by 15.08.2014. The declaration of assets of officers are also required to be placed before the Promotion Boards in compliance of judgement of Supreme Court of Pakistan It is requested that a certificate may be furnished to FBR by August 20, 2014 to the effect that all employees working under LTUs/RTOs administrative control have submitted their respective declarations, FBR added.



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Cotton and Textiles: Pakistan

Cotton market: prices up amid rising demand by mills August 06, 2014

Fresh buying by mills helped the rates to resist more erosion in the process of trading, dealers said on the cotton market on Tuesday. The official spot rate recovered by Rs 50 to Rs 5300, they added. In ready session, approximately 8000 bales of cotton changed hands between Rs 5300-5550, the prices of seed cotton in Sindh and Punjab also showed an improvement of Rs 100 to Rs 2700-2725, they said. It is surprising to note that prices have started lifting from bottom mainly because of increase in demand by mills and spinners, they said. The supply position is tight as ginners were buying seed cotton at lower rates, but the growers, who were not getting desired return on the rates, not selling, they said. Which is causing some shortage, they added. Under the circumstances, the growers protested in Shahdadpur, demanding of the government to take steps to minimise their losses. Cost of production is high and profit is falling with the passage of time, they added. Cotton analyst, Naseem Usman said the other positive factor is stable trend in the NY cotton futures and rising demand in the China market. Reuters adds: the US cotton futures rose for a second session on Monday, as broad gains in agricultural commodities and bargain-hunting underpinned the fibre market after last week's drop to a five-year low. The most-active December cotton contract on ICE Futures US finished up 0.97 cent at 64.24 cents a lb. The 19-commodity Thomson Reuters/Core Commodity CRB Index climbed 0.6 percent, led by gains in the grains market. The following deals reported: 1000 bales of cotton from Sanghar sold at Rs 5300-5400, 1000 bales from Mir Pur Khas at Rs 5300-5400, 1000 bales from Shahdadpur at Rs 5350-5400, 600 bales from Tando Adam at Rs 5350-5400, 600 bales from Kotri at Rs 5350-5400, 600 bales from Hyderabad at Rs 5350-5400, 200 bales from Pak Pattan at Rs 5500, 400 bales from Kasso Wal at Rs 5500, 400 bales from Chichawatni at Rs 5500, 600 bales from Arif Wala at Rs 5500, 1000 bales from Burewala at Rs 5500 and 400 bales from Khanewal at Rs 5550, they said.

=========================================================================== The KCA Official Spot Rate for Local Dealings in Pak Rupees --------------------------------------------------------------------------- FOR BASE GRADE 3 STAPLE LENGTH 1-1/32" ---------------------------------------------------------------------------MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL =========================================================================== Rate Ex-Gin Upcountry Spot Rate Spot Rate DifferenceFor Price Ex-Karachi Ex. KHI. As Ex-Karachion 04.08.2014 =========================================================================== 37.324 Kgs 5,300 155 5,450 5,400 +50 ---------------------------------------------------------------------------


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Equivalent --------------------------------------------------------------------------- 40 Kgs 5,680 155 5,840 5,786 +54 ===========================================================================

Growers hold protest against cut in cotton price August 06, 2014

Growers held a protest against cut in cotton buying price, burnt tyres and blocked road for four hours here on Tuesday. According to details, protesters said that cotton ginning mill owners were purchasing cotton at Rs 2,500 rate per Maund instead of Rs 3,500, and cutting four kilograms of cotton on one Muand when weighing the commodity. They said this unfair act, affecting the growers of cotton. They said production cost of cotton was mounting day-by-day but its price was decreasing, adding selling the cotton on current prices is causing losses to them. Growers demanded of Sindh government to fix the price of cotton on Rs 4,000 per Maund as they could get a relief.

Copyright Pakistan Press International, 2014

Energy supply constraints: textile industry's growth being marred: APTMA August 06, 2014

Central Chairman APTMA Yasin Siddik has said that sustainability and growth of textile industry is being marred by energy supply constraints and liquidity crunch, limiting industrial potential to operate on full scale. He said unfortunately the textile industry export has witnessed dismal performance during the outgoing fiscal year, closing at 13.7 billion dollars against 13 billion dollars export during the corresponding period. It reflects poor performance of the textile industry, as the actual export target for the outgoing fiscal year was 16 billion dollars. He asserted that a limited energy supply to the Punjab-based textile mills has proven a major hurdle in smooth operations and steady growth of textile industry. Accordingly, he said, yarn and fabric export has registered 26 percent and 35 percent decline in quantity terms respectively during the last three months. It has further triggered serious supply chain issues for value added sector right from knitting to woven to the bed-linen, which have consequently failed to avail the GSP Plus facility from the EU. Serious energy supply constraints have also led to forced closures of production capacities to the extent of 40 to 50 percent, he added. Furthermore, he said, the industry will also be unable to


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procure cotton crop already started arriving in the market. He urged the government to ensure uninterrupted electricity supply to industry and 250mmcfd gas supply to Punjab-based mills for in-house generation and consumption of 1000MW electricity besides an expeditious processing and liquidation of Sales Tax Refunds as per commitment of the federal Finance Minister in the budget speech. He further urged the government to make announcement of Textile Policy 2014-19 to enable the industry to overcome structural imbalances. Also, he said the US government should be pursued for market access facility in line with the EU GSP Plus facility.


Tax evasion Fabric importers to be issued show cause notices August 06, 2014

MUHAMMAD ALI

The Adjudication department of Pakistan customs has decided to issue show cause notices to the importers, who are allegedly involved in multi-million tax evasion in fabric imports through mis-declaration. Talking to Business Recorder, Ahmad Mujtaba Memon, collector, Adjudication said that Appraisement West had made over 40 contravention reports against 13 fabric importers, involved mis-declaration of description and valuation manipulation. These reports have been sent to Adjudication department for a further action. However, the Adjudication department has reverted back all these contravention reports to the Appraisement West as mandatory clause that provides a hearing opportunity to the accused persons is missing in the reports. He dispelled the impression of rejecting all contravention reports made by the Appraisement West, saying that all reports had been drafted, comprehensively hence question did not arise for its rejection by the Adjudication department. "Yes, all contravention reports have been sent back to the Appraisement Collectorate West, but only to add mandatory clause that provides a hearing opportunity to the accused persons in it." He said that this clause was added in the notices, manually however after the commencement of electronic system, the same, which should have been added at the end of the notices automatically, was not appeared in it. Moreover, he said that this mandatory requirement was going to be fulfilled within two to three days thus the department would start issuing show notices to some 13 fabric importers to provide them opportunity to prove their innocence in this case. "If they fail to satisfy the department, punitive measures will be taken against them to recover evaded revenue." On the other hand, sources claimed that electronic system, which had been running for over two years and issued a number of notices so far, did not face such an objection. Smelling a rat in it, sources claimed that this objection might have been intended to put dust on this case as all seized fabric consignments had already been released.


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They said that Custom Intelligence, Karachi and Appraisement West had blocked the clearance of fabric consignments on the complaints of mis-declaration in June. They said that Customs Intelligence department had lodged FIRs against fabric importers for evading over Rs 218 million through mis-declaration of description and valuation manipulation in fabric imports but legal process in Appraisement West was going with snail pace, raising questions on the department.


PTA for installation of four RO plants in tannery zone August 06, 2014

Chairman, Pakistan Tanners Association (PTA), South Zone, Fawad Jawed, has urged Sindh Governor Dr Ishrat-ul-Ibad Khan, Chief Minister Syed Qaim Ali Shah and Minister for Local Government Sharjeel Memon to come forward for the rescue of leather industry as it was facing acute water shortage and order installation of four Reverse Osmosis (RO) plants in tannery zone. Jawed said that the four RO Plants had already been approved and the project's PC-I was pending with Karachi Water and Sewerage Board (KWSB). He urged the high up to save leather and leather goods' export industry that has been threatened by the non-supply of water, the basic raw material for leather industry. He said that the tannery zone in KIA was not getting water from KWSB for over a decade and the only source of water was from underground wells that were drying up fast. He further stated that now the industrial estate faced a drought like situation. He noted that Sindh Governor had released an amount of Rs 44 million to KWSB for laying water trunk main for supply of five MGD water to leather industry. However, the KWSB did not release water into the pipelines laid for the purpose despite a firm commitment. The pipeline is feared to be cracked badly due to non-supply of water for the last two years and Rs 44 millions has almost been wasted. PTA condemned the pathetic attitude of KWSB high ups for squandering precious resources without achieving results from installation of 5 MGD water pipeline in the area for supply of water to the cluster of leather industries. Fawad while sending an SOS to Sindh Governor has urged him to intervene in the matter and get the project accomplished by KWSB and release water into the mains so that the water-intensive exporting leather industry may survive from total collapse. KWSB continues to deny supply of water to the biggest national cluster of leather and its made-ups, which contributes to over 35 percent of total exports of national leather industry. The huge funds given to the KWSB by the Governor Sindh from his special funds for this project appears to have been wasted since KWSB despite laying two kilometer long 12 inches dia pipeline from Tannery Zone to Chamra Roundabout while Rs Plants committed by KWSB are yet to be installed.


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Agriculture and Allied: Pakistan

Sugar export: SBP reduces advance deposit requirement August 06, 2014

RIZWAN BHATTI

In order to facilitate the exporters, State Bank of Pakistan (SBP) while extending the shipment period for sugar by 45-days has announced to reduce advance deposit requirement from 25 percent to 15 percent with immediate effect. According to SBP EPD Circular Letter No 07 2014 issued last week, following Economic Co-ordination Committee (ECC) of the Cabinet''s decision dated July 4, 2014 conveyed to State Bank of Pakistan by Ministry of Commerce vide their Office Memorandum No 7(2)/2012-E-III dated July 11, 2014, the central bank has amended it previous circular, issued in April this year, for sugar export. As per ECC decision, shipment period for export of sugar has been extended from 45 days to 90 days with retrospective effect from 27th March, 2014 and now exporters can dispatch their sugar shipments through sugar mills latest by October 31, 2014. Accordingly, shipment period for export of sugar will be 90 days from the date of issuance of SBP approval letter or by October 31, 2014 whichever comes earlier. Further, shipment period of 45 days for the export of sugar on the basis of the earlier SBP approvals issued in the light of the to EPD Circular Letter No 02/EPP.1 (51)-2014 will also stand extended to 90 days. Following the ECC decision, SBP has also announced to reduce advance deposit requirement for sugar export by 10 percent. With this amendment, the requirement for advance deposit has been reduced from 25 percent to 15 percent with immediate effect. Sugar mills can export commodity from now onwards against irrevocable letter of credit or a contract with 15 percent non-refundable advance payment, which will be forfeited in favour of Government of Pakistan in case of non-performance. According to SBP, all other terms and conditions of the above mentioned EPD Circular Letter No 02/EPP.1 (51)-2014 issued for sugar export shall remain unchanged. SBP has asked all authorised dealers to bring the same to the notice of all their constituents to facilitate the exporters. Sugar industry has welcomed the ECC and SBP decision and said that these types of measurers would provide some cushion to the mills to offload their stock before staring new crushing season. They said that still hundreds of tons sugar stocks are lying at sugar mills'' warehouses for domestic and export purposes, while new crushing season is going to start in next two months.



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Daily trading report of PMEX August 06, 2014

On Tuesday at Pakistan Mercantile Exchange (PMEX) value traded was PKR 1,238 million. Number of lots traded was 6,156 and PMEX Commodity Index closed at 3,027. Major business was contributed by crude oil amounting to PKR 801 million, followed by gold at PKR 401 million and silver at PKR 26 million.


Government urged to purge PGJDC BoD of political appointments August 06, 2014

M RAFIQUE GORAYA

The Regional Standing Committee on Gems & Jewellery, FPCCI, and Gold & Gems Art Promotion Council-Pakistan (GGAPC-Pakistan) in a joint meeting have urged the government to purge the Board of Directors (BOD) of Pakistan Gems & Jewellery Development Company (PGJDC) of political appointments. Chairman Regional Standing Committee on Gems & Jewellery FPCCI, and Gold & Gems Art Promotion Council-Pakistan (GGAPC-Pakistan) Muhammad Ahmad told Business Recorder on Tuesday that the Ministry of Industries has appointed three women parliamentarians of the ruling PML (N) party as PGJDC BoD as a political bribe. In this regard, a resolution was adopted unanimously in the meeting whereby it was stated that women parliamentarians did not have know-how about the gems and jewellery sector and how could they play their role in the promotion of this sector while they were busy in political affairs. Ahmad said the PGJDC, since its inception to up-till now, could not perform significantly while the gems and jewellery industry of Pakistan is facing crisis owing to ever increasing prices of gold and weak national economy. He said that hundreds of people related to this sector had been rendering jobless while the PGJDC was unable to cope with the current situation. Ahmed said that neighbouring country India was propping up its national economy by promoting its gems and jewellery sector. He said that national and local dailies had been raising voice against illogical decisions by the government in the past but to no avail. He demanded Prime Minister Nawaz Sharif, Federal Minister for Production Ghulam Murtaza Khan Jatoi and Federal Finance Minister Ishaq Dar to purge the PGJDC of political appointments and include those persons related to gems & jewellery sector.



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China has vast scope for export of Pakistani gems, jewellery: PCJCCI chief August 06, 2014

President of Pak-China Joint Chamber of Commerce and Industry (PCJCCI) Shah Faisal Afridi has said that China, being the world's largest consumer market for gems and jewellery has a vast scope for export of Pakistan's gems and jewellery products. During a meeting with Wang Zihai, President Association of Chinese Companies in Pakistan, Shah Faisal Afridi said, "Pakistan has emerged as the fifth largest country for the occurrence of gemstones but unfortunately Pakistan had not been able to benefit from its natural resources due to lack of skills, technology and knowledge of processing the mining material." Faisal Afridi exchanged a number of proposals for promoting export of gemstones from Pakistan to China and sought co-operation of Chinese companies operating in Pakistan for this purpose. He said Pakistan has a potential yield of 800,000 carats of Ruby, 875,000 carats of Emerald and five million carats of Peridot, which lay unutilised due to lack of appropriate cutting and polishing facilities in the country. He invited public sector organisation Pakistan Gems and Jewellery Company to collaborate with PCJCCI to explore opportunities available in the Chinese market for this sector. He also urged TDAP to organise exclusive exhibitions of Pakistan's gemstones and Jewellery in China to attract world's largest consumers. In 2013, gems and jewellery worth 1.18 billion dollars were exported after the Expo Pakistan 2013 held in Karachi. Faisal suggested collaboration with China to learn the latest techniques for cutting and polishing of the gemstones. He suggested taking on board national productivity organisation NPO and with the assistance of Asian productivity organisation, Chinese professionals in this sector should be invited to train Pakistani labour force for manufacturing and designing state of the art jewellery in this vital segment of the economy. Faisal revealed that Pakistan's Pink Topaz and Kashmir Ruby are unique items all over the world, especially the Pink Topaz is considered as one of the second highest valued mineral, that was being smuggled to India in raw form and then sold in the international market as a refined high cost item by India. Earlier, Wang Zihai, President Association of Chinese Companies in Pakistan informed that China started capturing the attention of global jewellery industry since 1978 and with the passage of time China had turned to be a rapidly growing consumer market. He said, in 1980, only 20,000 people throughout China were involved in the jewellery industry and thirty years later, more than three million are employed in this field but, rising costs of labour created challenges for the manufacturing sector, which has created a room for Pakistan in this area. However, he pointed out that, Chinese consumers are becoming more sophisticated in their shopping habits; they are moving away from traditional styles and are more inclined towards latest trends, quality, uniqueness and luxury products. Therefore, Pakistani exporters will have to ensure international standards and quality to attract Chinese market, he added.


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Pak-China Economic Corridor to open avenues of cooperation in agriculture sector: first CAC Pakistan Summit opens August 06, 2014

MUHAMMAD SALEEM

Pak-China Economic Corridor will open up new avenues of co-operation in agriculture sector as it would also pave the way for transfer of technology pertaining to agro-chemicals, pesticides, fertilisers and seeds. This was upshot of speeches delivered at the opening ceremony of 1st CAC Pakistan Summit jointly organised by the Lahore Chamber of Commerce and Industry (LCCI) and CCPIT Sub-Council for Chemical Industry with the support of Punjab government here on Tuesday. Provincial Minister for Agriculture Dr Furrakh Javaid, LCCI President Engineer Sohail Lashari, Vice-Chairman CCPIT Sub-Council for Chemical Industry Ma Chunyan, LCCI Senior Vice President Mian Tariq Misbah, Vice President Kashif Anwar, Chairman Standing Committees Sheikh Muhammad Arshad and Jawaid Saleem Qureshi were the main speakers. There was consensus among the speakers that 'Pak-China Hybrid Wheat Industrialization Co-operation Agreement' would greatly help develop Pakistan's agriculture sector through new varieties of seeds. Speaking on the occasion, Provincial Minister for Agriculture Dr Furrakh Javaid said the CAC Summit and Exhibition is a unique opportunity for our agriculturists as it would enable them to learn about Chinese expertise in the agriculture sector. He said Chinese co-operation in all fields of the economy is matchless. The Minister said the Punjab government is striving to educate the farming community as the research in agricultural field would remain useless if it does not reach the farmers. He said Punjab government is taking every possible step to strengthen agriculture sector that is evident from the fact that it has given flat rate of Rs 10.35 per unit for the tube wells. He also expressed the resolve that a subsidy of Rs 14 billion for the agriculture sector would be disbursed after consultation with stakeholders so that the benefit could reach the quarters concerned. Vice Chairman CCPIT Sub-Council for Chemical Industry Ma Chunyan said that trade of pesticide has an important role in the total two-way business of $12 billion. She said in 2013, pesticides amounting to $172 million were imported from China while import of fertilizer remained at $309 million. Ma Chunyan said China is the largest exporter of pesticides chemicals as it exported 300 million types of pesticides in the year 2013. She said 2,400 Chinese enterprises are directly linked to this sector. She said the Chinese co-operation with Pakistani agriculturists would write new success stories in coming years. She said the CAC Exhibition has in its fold chemical, machinery, seeds, pesticides and fertilisers, etc. She also thanked the Chief Minister Punjab Mian Shahbaz Sharif


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and LCCI President Engineer Sohail Lashari for extending unmatched support for the successful happening of this mega event. The LCCI President Engineer Sohail Lashari in his address stressed the need for Public Private Dialogue as a pre-requisite to revolutionise the agriculture sector that holds the key to progress and prosperity. He said it is the only area where a little attention could do miracles as it does not need that amount of electricity required to run the industrial wheel. He said Pakistan is the only country of the South Asia to have CAC exhibition that would certainly strengthen the country's agriculture sector. He also called for construction of water reservoirs as shortage of water may pose a serious threat to the agriculture sector in coming years. "This is white oil but, unfortunately, we are more focused on black oil instead of taking care of our future generations that are likely to suffer because of water shortage," he said. Chairman Standing Committee on Agriculture Jawaid Saleem Qureshi urged the government to form task force to deal with the regulatory and marketing issues of the agriculture sector. He said Punjab's agriculture sector could generate extra revenue of over Rs 100 billion if agro-input prices are controlled. He said the subsidy allocated for the agriculture sector could be utilised to provide cheaper fertilisers and pesticides to the farmer by paying GST to the government. Elaborating the point, he said if the government pays the GST on pesticides and fertilisers through the subsidy it would enable the farmers to have cheaper inputs.


Country spent $1.859 billion on palm oil import during fiscal year 2014 August 06, 2014

The country spent $1.859 billion on the import of palm oil during the last fiscal year 2013-14, which is 5.25 percent lower than the spending in fiscal year 2012-13, official figures say. The country's palm oil import remained lower by $103 million in the last fiscal year as compared to the edible oil import of $1.962 billion in the corresponding fiscal year, says Pakistan Bureau of Statistics (PBS). In terms of volume, the country's palm oil import went up by 56 million metric tons (3 percent) to 2.219 million metric tons in the last fiscal year from 2.163 million metric tons in the corresponding fiscal year 2012-13, the figures suggest. In June 2014, the country's palm oil import surged by $60.985 million (48 percent) to $188.498 million from $127.513 million in June 2013. The volume of palm oil import grew by 59,077 metric tons (38.36 percent) to 213,093 metric tons in June 2014 from 154,016 metric tons in June 2013, the PBS says. Import of soybean oil posted a robust growth of $36.51 million (49.03 percent) to $110.977 million in the last fiscal year 2013-14 as compared to the import of $74.467 million in the corresponding fiscal year 2012-13, the figures suggest. The size of soybean oil import mounted by 51,416 metric tons (85.26 percent) to 111,719 metric tons in the last fiscal year 2013-14 from


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60,303 metric tons in the corresponding fiscal year 2012-13, the statistics show. In June 2014, import of soybean oil skyrocketed by $29.109 million (6,556.08 percent) to $29.553 million from $0.444 million in June 2013. The import volume of soybean oil increased by 30,124 metric tons (8,368 percent) to 30,484 metric tons in June 2014 from 360 metric tons in June 2013, the PBS says.


IT and Computers: Pakistan

Centaurus Mall chooses Makkays August 06, 2014

Centaurus Mall in Islamabad has recently chosen Makkays to implement a state-of-the-art Alcatel-Lucent Enterprise data network solution to enhance their core network infrastructure and backhaul network. This will deliver advanced quality-of-service functionality and high-speed switching technology for day-to-day applications and services. Alcatel-Lucent Enterprise solutions are highly flexible as compared to other vendors in the market. The IT division at Centaurus Mall will now be able to make simple network upgrades in response to increased user demands without replacing the hardware. The products used are energy efficient, cost efficient, high performing and will require less installation space, which are key requirements for organisations in Pakistan focusing on operational expenditure. The data solution will also act as a backbone for the data centre connectivity and IP surveillance solutions. It will allow the 250 employees at Centaurus Mall to communicate with one another clearly with no network congestion. Furthermore, the switches used for IP surveillance will allow up to 300 fully integrated cameras working in adverse climatic conditions without power issues.-PR



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Fuel and Energy: Pakistan

Ahsan briefs German Ambassador about energy projects August 06, 2014

Federal Minister for Planning, Development and Reform Professor Ahsan Iqbal met German Ambassador to Pakistan Dr Cyril Nunn here on Tuesday to discuss bilateral ties of Pakistan and Germany. The Ambassador appreciated the economic initiatives undertaken by Government of Pakistan and called for strengthening the ties between two countries. The Ambassador informed the Minister about upcoming events in Germany for promotion of economic co-operation between two countries and discussed areas for future co-operation. Ahsan Iqbal said, "Pakistan Vision 2025 will be launched on 11 August, 2014 by the Prime Minister and will be a roadmap for national revival." The Minister outlined the priorities of government and explained the high priority accorded to energy sector of Pakistan as energy loss is hampering growth of Pakistan's economy. "Government has given highest priority to energy sector for coming two years," he said. He said that the government is working on one hand to end the electricity crisis and on the other is adopting cheaper means of energy to control high cost of generation and for that several new coal-based power plants are being installed on a fast-track basis, which would take three years to complete and by 2017 'we will have significantly increased the electricity generation capacity of Pakistan.' He further said that government has expedited work on on-going energy projects and is also focusing on energy efficiency, demand management and distribution system up-gradation. "In partnership with the provincial governments, federal government is launching an awareness campaign to help improve energy efficiency and manage the electricity demand," he added. He said, "We hope 2,000 megawatt of power will be available within a year with the completion of these ongoing projects. We are also expecting a saving of 1000 megawatt by introducing demand management measures." Talking about the physical infrastructure, the Minister highlighted that the government has taken several initiatives to improve the physical infrastructure of the country which will create jobs as well as improve delivery and transportation of goods and services. He said, "Karachi-Lahore Motorway (KLM) is a mega project which will improve the road network of Pakistan." The Minister also talked about the steps taken to modernise the railway system which will help in coal transportation for coal-based power plants. The Minister said that Pakistan Vision 2025 will put Pakistan on a fast-track of growth and make it one of the fastest emerging markets of world. The focus of Pakistan Vision 2025 is to create a strong economy for stable and strong Pakistan.-PR



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Net oil, gas production up by seven percent: OGDCL to start exploration activities in 17 new blocks August 06, 2014

ABDUL RASHEED AZAD

The Oil and Gas Development Company (OGDCL) will start exploration activities in 17 new blocks this year. Chairman, OGDCL Board of Directors, Zahid Muzaffar along with Managing Director OGDCL Mohammad Rafi, while announcing annual financial results of the company at a press conference here on Tuesday, said OGDCL's net oil/gas production during past financial year 2013-14 had increased by seven percent, while the overall increase in oil/gas production was 15 percent of which eight percent was depleted. He added that OGDCL's BoDs, in its meeting on August 5, approved the financial results of the company for the year ending June 30. During the financial year 2013-14, OGDCL continued to deliver robust financial results coupled with steady operational performance, while successfully maintaining its position as the leading player in Exploration and Production (E&P) in terms of oil & gas reserves in the country. OGDCL recorded improvement in its production volumes, reaching average daily net crude oil and gas production of 41,330 barrels per day and 1.17 Billion Cubic Feet per Day (BCFD) as against 40,101 barrels per day and 1.1 BCFD respectively in the previous year. Moreover, average daily production of LPG also increased by 25 M Tons. OGDCL's net sales revenue increased by 15.1 percent to Rs 257.014 billion compared to Rs 223.365 billion last year. Company's net profit after taxation increased by 35.8 percent reaching a new record level of Rs 123.915 billion against Rs 91.273 billion in the preceding year translating into earnings per share of Rs 28.81. The BoDs declared final cash dividend of Rs 3.0 per share (30 percent) totalling to Rs 9.25 per share (92.5 percent) for the year ending June 30, 2014 against Rs 8.25 per share (82.5 percent) during last year. OGDCL was also successful on the exploration front where it realised two new finds of hydrocarbon namely Saand-1 in District Tando Allah Yar concession and Maru East-1 in District Ghotki, both in Sindh Province. The improved results indicate sustainable business growth and financial strength to undertake future exploration and development programmes leading to increased shareholders returns in the future.



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Obsolete power system: Ministry not aware of funding requirements August 06, 2014

MUSHTAQ GHUMMAN

Ministry of Water and Power is unaware of the precise funding requirements for revamping the obsolete transmission and distribution system which, according to Secretary Water and Power, Nargis Sethi, is unable to endure load beyond 15,000 MW. On August 5, 2014 Prime Minister Nawaz Sharif directed Ministry of Water and Power to expedite up-gradation of country''s electricity transmission and distribution system so that additional power generated from ongoing and new projects is smoothly distributed and line losses are controlled. According to power sector analysts, billions of dollars investment is needed to revamp the transmission and distribution system. Power sector consumers pay billions of rupees annually to Discos to make up losses which relate to incompetence of power sub-sectors. Finance Minister Senator Ishaq Dar, who recently constituted a committee for preparation of an integrated energy policy under the chairmanship of Minister for Planning, Development and Reforms, Ahsan Iqbal, advised this correspondent to contact Minister for Water and Power, Khawaja Asif or Secretary Water and Power, Nargis Sethi to get actual funding requirement for up-gradation of transmission and distribution system. The Finance Minister did not respond when informed that the Minister and Secretary had not responded to such queries by the media. Ministry of Water and Power''s spokesman said the team dealing with this subject is in China and promised to get authentic figures from them once they are back. Presently, power sector losses are about 17.55 percent but Nepra allowed Discos to pass on only 12.82 percent losses to consumers. The Economic Co-ordination Committee (ECC) of the Cabinet in its meeting on May 28, 2014 directed Nepra to pass on the entire loss to consumers saying that it is not possible for Discos to comply with the targets set by Nepra against average T&D losses of 17.55 percent. Ministry maintained that Discos will not be able to achieve a target of 12.82 percent losses and estimates that these accounted losses would add Rs 45 billion to the circular debt. Discos submit their system investment plans to Nepra in tariff petitions but they have never implemented these plans citing different reasons. The source said losses in the transmission and distribution system are higher in Sindh, Balochistan and KPK as compared to Punjab.



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Fatal accidents: K-Electric refutes Sindh government's allegations August 06, 2014

K-Electric has refuted the allegations hurled by some officials of the Sindh government that the utility company is responsible for the fatal accidents caused by electrocution in parts of Karachi. The K-Electric spokesperson said that while neglecting their own responsibilities to their constituents, government officials are busy trying to pin blame on K-Electric to hide their own shortcomings. KE's spokesperson said that after hearing of the electrocution of two persons near Madni Pakwan Centre in Buffer Zone, Sector 15-A, it had immediately dispatched its teams to the site to investigate the cause of the problem and rectify it accordingly. However, upon reaching the site KE's employees discovered that the cause of the tragedy was due to the individuals falling in a trench, which had been recently dug up to lay down telephone lines. In fact, there were no KE installations of LT (low tension) or HT (high tension) poles in the vicinity of the site of the accident, according to the utility company. Hence, KE's spokesperson said, the company was not directly or indirectly responsible for the accidents. To prevent further accidents, KE's team took the onus of closing the excavation and subsequently informed the North Nazimabad town administration of this measure. Regarding the news report that there was a death due to electrocution at Korangi Chamra Chowrangi, KE's spokesperson said that the utility company had not received any such information. On the other hand, when KE was informed about electrocution-related accidents at Bohra Pir Choona Bhatti in Ranchor Lane, it took immediate action to remove the fallen electricity cables from the ground. According to KE's spokesperson, the cables in that area frequently snap due to people illegally using them to install hook (kunda) connections.-PR



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Fuel and Energy: World

Brent settles at nine-month low on oversupply fears, weak demand August 06, 2014

Oil prices tumbled on Tuesday, with Brent crude falling to a nine-month low as ample supplies in Europe and North America outweighed fears that violence in the Middle East and North Africa could disrupt production. Worries about prolonged geopolitical tensions in key producing regions had prompted a short rebound, but in the absence of supply disruptions, the market resumed its downward trend on Tuesday as traders and investors grew more nervous about seasonal weak demand and poor refinery margins in a market that appears to be abundantly supplied. "We continue to see material risk to supply from Libya, Iraq and Russia, but the market over the past six weeks has become increasingly complacent regarding supplies," said Tim Evans, an energy futures specialist at Citigroup in New York. Brent crude lost 80 cents to settle at $104.61, the weakest settlement since November 2013. US crude lost 91 cents to settle at $97.38, the lowest settlement since early February. The spread between the two benchmarks closed at $7.23. Global oil demand has been running below supply over the past few months, building up a glut of high quality crude oil in the West African, European and Asian markets. Brent for immediate delivery has been at a discount to futures for the longest period since 2011, a formation called "contango" that indicates a well-supplied market. "At this moment the market is mainly supply-driven," said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam. Worries about oversupply and weak demand have relegated geopolitical concerns to the background, erasing most of the risk priced into the market earlier this summer. Libyan oil output has dropped to around 450,000 barrels per day (bpd) from 500,000 bpd last week. Yet the state-run National Oil Corp says oilfields are secure despite prolonged clashes between rival militias in the capital, Tripoli. Meanwhile, oil exports from Iraq, Opec's second-largest producer, rose to an average of 2.442 million bpd in July from 2.423 million in June, although Islamic State insurgents have tightened their grip in the north of the country. A Reuters survey of analysts suggested US commercial crude oil inventories fell by about 1.7 million barrels in the week to August 1, while gasoline stocks gained 300,000 barrels. "People are banking on the idea that US crude is going to back up a little because of the refinery issues we had last week," said Carl Larry, CEO of consultancy Oil Outlooks in Houston, Texas.



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OMV says Russia sanctions don't impact South Stream pipeline August 06, 2014

European sanctions imposed on Moscow in the Ukraine crisis will have no impact on the planned South Stream gas pipeline to bring Russian gas to Europe, the head of Austrian energy group OMV told Profil magazine. "I see no influence there," OMV Chief Executive Gerhard Roiss said in an interview with the Austrian magazine, excerpts of which it released ahead of publication on Monday. Sanctions adopted by the European Union last week include export bans on advanced oilfield equipment and steps to prevent Russian banks from arranging long-term finance on European capital markets, but exclude any measures to curb gas flows. Roiss, whose company signed a deal with Russia's Gazprom in June to extend the South Stream pipeline to Austria, said he was sure Brussels would accept the pipeline, despite reservations voiced by EU officials. "Europe would shoot itself in the foot if it prevents construction" of the pipeline, he was quoted as saying. Austria's economy minister said at the weekend that companies in the high-tech and agricultural sectors would feel the most impact from the sanctions. South Stream, which will cost an estimated $40 billion, is designed to carry Russian gas to the centre of Europe, on a route that bypasses current Ukraine. Europe already depends on Russia to supply a third of its gas needs, and around half of that amount is piped through Ukraine. The European Commission has said South Stream as it stands does not comply with EU competition law because it offers no access to third parties. South Stream also goes counter to the EU policy of diversifying supply sources to reduce dependence on Russia.



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BR Research: All

OGDC amasses record profits August 06, 2014

BR Research

The Oil and Gas Development Company just reported its highest-ever yearly profits. The quantum of profits is about what the government is targeting to collect in terms of petroleum levy this year. The kinds of margins OGDC enjoys can only be dreamt of by other industries. Forget gross--even the net margins are higher than the gross margins of supposedly high-margin businesses. And the strength is driven right from the top. The company continues to grow. Both oil and gas production flows have increased. Lady luck, too, has favoured the hydrocarbon giant in terms of rupee depreciation versus the dollar and increased realised oil prices. The rich land, that Pakistan luckily has, meant OGDC incurred no major cost in terms of dry wells--reducing exploration expense and further escalating gross margins. The company boasts of other income that many would trade their top line for. Imagine, its non-core income is as big as what FFC--the fertiliser firm often termed as goldmine--made in net profits last year. It is not all luck though. Hard work pays and it continues to pay for OGDC. The subscription to PIBs is paying its returns in the form of other income. The future, too, seems bright--as despite few troubling wells, most others are yielding decent hydrocarbon growth. Finances are clean and cash is plenty. There is hardly anything to worry about. The company may well up the ante on seismic activity and unlock more wells in the quarters to come.

================================================ Oil and Gas Development Company ================================================ Rs (mn) FY14 FY13 chg ================================================ Sales 257,014 223,365 15% Gross profit 176,073 158,432 11% Other income 19,126 15,694 22% Exploration expense 8,723 14,980 -42% PAT 123,915 91,273 36% EPS (Rs) 28.81 21.22 36% Gross margin 68.5% 70.9% Net margin 48.2% 40.9% ================================================


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Two cheers for Cherat August 06, 2014

BR Research

The countrys construction appetite is reflected in the cement industrys expansion plans. While there had been inside word about Cherat Cements expansion, the company chose to make an official announcement a day before Eid. Expectedly, the news has remained largely unnoticed in the press since. The expansion is being pursued in light of expected rise in domestic demand for cement. To recall, the sector had registered the highest-ever domestic despatches during FY14. Cherats new production line, being acquired from Tianjen Cement Industry Design and Research Institute Company Limited, is to be installed at the companys existing site in Nowshera and will have a production capacity of 1.3 million tons per annum. With the expansion, Cherats capacity would increase to 2.4 million tons. The new plant is expected to come online in 2017, while the project would cost the company Rs12 billion. Currently, at Rs183 million, Cherats long-term debt per ton comes at Rs166. This is comparably far less than the per ton long-term debt of Bestway before Lafarges acquisition, which amounted at Rs1,043. According to Nabeel Khurshid, Research Analyst at Top line Securities, up to 75 percent of the financing is being raised through debt. So, how does the expansion bode for the industry at large? Furqan Ayub, Research Analyst at JS Global Securities, suggests that while it is difficult to predict the distribution of pricing power, the cartel is likely to remain intact. According to Ayub, not only has the industrys capacity utilisation been high, Cherat itself has been operating close to 100 percent lately, which is why an expansion was already on the cards. Further, Cherat had also not been part of the previous expansion phase in the industry back in 2006-2007. Khurshid agrees, arguing that even with conservative estimates of growth in domestic demand, the industry would require expansion and, therefore, Cherats decision does not come as a surprise. Industrial capacity utilisation is likely to hit 85 percent by 2017, and so, expansion decisions have been timely, given that the gestation period lasts for about 2-3 years. As for the industry, a price war is more likely to be short-lived even if it were to happen. Khurshid posits that with a 20-25 percent reduction in prices, as had happened back in 2009-2010, profitability could be hurt by up to 50 percent. And so, industrial players are now more likely to tread with caution as far as pricing is concerned. Given that the Cherat does not have in-house electricity generation, a price war could be even more harmful for the company, unlike a few of the bigger players with in-house power generation. With another major expansion plan in the offing, the sector does seem to be on a joyful ride. Fingers crossed for DGKCs move!


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ABL in fine form August 06, 2014

BR Research

The meal was there for the taking and it appears Allied Bank Limited (ABL) made a good feast of it. Its half-yearly profits were driven by the top line, a deviation from the recent trend. Governments never-ending borrowing appetite was fed well by the banks and ABL must not have shied away from it. The 21 percent year-on-year top line growth shows just that. ABL has long been adjusting its asset-mix towards the favoured investments in government securities. And the ridiculously lucrative returns on PIBs were too delicious to miss. Advances have stayed on the flattish side for quite some time, and little suggests they would have changed this time around either. Gross spreads remained healthy, despite requirement of increased return on deposits--reflecting ABLs effective asset and liability management. Deposit growth has remained subdued of late, but the mix has improved--further strengthening net interest income, through reduced cost of funds. With an eye on the future, ABL had earlier hinted on diversifying income avenues. Continued improvement in non-operating income through dividend and forex gains is a testament to the strategy well in shape. Allied Bank also happens to be one of the cleanest amongst peers, with a staggeringly low infection ratio of just seven percent and a very high coverage ratio. No wonder, provisioning charges made no-dent to the profits. What can dent in the future, though, is likely a reversal in interest rate cycles, following which ABL will have to move out of the comfort zone. Whether or not ABL would be lending aggressively is guesswork right now, but a shift in asset-mix will still have to be made--by choice or by design. Till then, all is well with ABL.

========================================================= Allied Bank Limited (Consolidated P & L) ========================================================= Rs (mn) 1HCY14 1HCY13 chg ========================================================= Markup earned 31,772 26,153 21% Markup expenses 18,905 15,761 20% Net Markup income 12,867 10,392 24% Provisioning/(Reversal) 2 31 -95% Net Markup Income after provisions 12,865 10,360 24% Non Mark-up / Interest Income 6,380 5,056 26% Operating revenues 19,245 15,416 25% Non Mark-up / Interest expenses 8,357 7,467 12% Profit before taxation 10,888 7,949 37% Taxation 3,693 2,361 56% Profit after taxation 7,195 5,588 29% EPS (Rs) 6.28 4.88 =========================================================


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EFOODS: struggle continues August 06, 2014

BR Research

Difficulties remain for Engro Foods Limited (KSE: EFOODS). Company financials disseminated to the KSE yesterday showed an all-round deterioration in profit margins for the half-year ended June 30, 2014. The problems started at the top. In a country where packaged goods seem to be in growing demand, the top line of EFOODS--the maker of dairy, beverage and frozen desserts--grew by just 6 percent year on year in 1H CY14. Of all the FMCGs, the makers of packaged dairy products are supposed to be assured of an expanding consumption pie of dairy products. Well, Nestle, its closest competitor and Unilever Foods have been doing rather well lately. Then what is going on at EFOODS? To be fair, consolidation of business is harder when you e the new kid on the block. EFOODS, a local bloke, is less than a decade old compared to its experienced, formidable and global competitors. The firms prime revenue generator is dairy business, its major earner, the tea-whitener brand Tarang is very famous, but the management has to keep track of the pricing dynamics of the sector and to confront the distribution challenges in general. A few analysts have a hunch that the EFOODS top line has suffered in the first half due to decrease in sales volume--which suggests low demand, contrary to the signs of economic recovery. Lower volumes are said to be a result of the companys distribution channel issues, where the companys market reach is less-than-optimal due to law and order issues as well as competitive pressures. Meanwhile, the impact of the discount policy on Tarang sales may have been diluted due to channel issues, hurting the revenue function. On products, where the company did manage to increase prices, it seems it couldn pass on the whole impact of cost pressures on raw and packaging materials. Dairy businesses are prone to seasonality. While the best months for cost-effective milk supply are in winters, the best months for dairy and ice cream demand are in summers. The period under review concerns a "lean" season for milk production, which inevitably leads to higher costs. No wonder then that EFOODS core costs have been edgy during this period. The decline in the heavyweight operating expense category of "distribution and marketing" activities provided some relief. These expenses exhausted a good 230bps lower of net sales in 1H CY14 than previous year. A 53 percent increase in finance costs added to the woes at the bottom, as the company closed its first half in a less-than-ideal shape. Lots of interesting ideas are coming up from EFOODS. The expansion of Mabrook fresh dairy milk shops, the commissioning of the powder milk plant, more liters flowing out of the in-house Nara milk production farm, all signal a push towards diversification and self-sufficiency. They


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may yield results in the long term. In the short term, the firm needs to significantly increase its sales volumes. It had closed CY13 with its profitability down 66 percent. Things must change fast if this year is to close on a different, better note!

============================================================ Engro Foods Ltd (consolidated) ============================================================ Rs (mn) 1HCY14 1HCY13 chg ============================================================ Net sales 20,100 18,933 6% Cost of sales (16,016) (13,636) 17% Gross margin 20.32% 27.98% - Distribution & marketing expenses (2,338) (2,637) -11% Operating margin 5.19% 10.38% - Finance cost (610) (398) 53% Profit/ (loss) after taxation 329 1,113 -70% Net margin 1.64% 5.88% - ============================================================


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Crime Updates

16 POs arrested in Lahore LAHORE: FIA arrested 16 proclaimed offenders (POs) during Eid holidays from Punjab.

According to sources, FIA Commercial Banking Circle (CBC) Lahore arrested a PO, FIA Corporate Crime Circle (CCC) Lahore captured a PO, FIA Anti-Human Trafficking Cell (AHTC) Lahore arrested two POs, FIA Gujranwala arrested eight POs and FIA Multan captured four Pos.

Peshawar: Huge cache of explosives seized PESHAWAR: In a successful search operation in the peripheral areas of the provincial capital, the law enforcers seized huge cache of explosives from a factory at Ring Road Toll Plaza on Monday.

According to police, the department was investigating the case of an illegally run factory located near Ring Road Toll Plaza and finally recovered explosive material dumped in the factory. The security guard of the factory was arrested and further interrogation and investigation was underway, informed police officials. He informed that these explosives were being used in ‘crackers’ blasts in different parts of the city.

5 robbers arrested in Islamabad ISLAMABAD: Lohi Bher Police have arrested five robbers who used to barge into houses and loot valuables after cutting iron grills and locks besides recovering nine motorbikes and other items worth hundreds of thousands of rupees from them, a police spokesman said. SP (Rural) Zubair Sheikh constituted a special team to arrest gangsters involved in looting houses. The team headed by DSP (Rural) Malik Tahir Mehmud included SHO Lohi Bher Police Inspector Chaudhry Abid, Sub-Inspector Muhammad Ishaq and others which worked hard to trace the culprits involved in such heinous crimes. Five dacoits were arrested by the police team who confessed to barging into houses and loot valuables after cutting iron grills and locks.

They have been identified as Sajid, Habib, Daud, Abdul Rehman and Sher Afzal, who confessed to breaking into houses at Soan Garden, River Garden and other residential areas adjacent to them. Police recovered nine motorbikes, TV sets, LCDs, electric motors and other equipment worth hundreds of thousands of rupees from them.

SP (Rural) Zubair Sheikh has said that these criminals used to barge into houses after cutting grills and locks. He termed it a good achievement and said efforts would continue with devotion to curb crime in the area.


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Nowshera: DI Khan jailbreak prisoner held NOWSHERA: The police arrested a prisoner, who had escaped from Dera Ismail Khan jailbreak, in the limits of Akora Khattak Police Station on Monday, official said.

Talking to reporters, Station House Officer Muhammad Naseem Khan said that acting on a tip-off, the police raided a house in Jehangira and arrested Attiqur Rehman, who was imprisoned in Dera Ismail Khan Prison in a murder case. He said that accused came to village for Eidul Fitr and was planning to leave for Karachi when the police arrested him. The police official said the accused would be handed over to the jail authorities after completing legal formalities.

2 girls raped in Pakpattan PAKPATTAN: Two girls were raped in separate incidents here. In the first incident, the daughter of Muhammad Saleem Shah of Mohallah Chiragh Shah was on way home when six people, including Ahmad Nawaz and Riaz, allegedly abducted her.

The accused took the girl to an unknown place where they raped her. The accused also beat the victim and snatched cash and gold ornaments from her. Police have registered a case and started investigations. In the second incident, Riaz entered the house of Bashir Ahmad Wattoo at Chak 16/SP and allegedly raped his 14-year-old daughter. Police have registered a case.


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Miscellaneous New

Addressing energy woes: LNG supply to CNG stations could save $1.4 billion By Zafar Bhutta

Published: August 6, 2014

ISLAMABAD:

The Ministry of Petroleum and Natural Resources has suggested that if liquefied natural gas (LNG) is supplied to compressed natural gas (CNG) stations, it will lead to savings of around $1.4 billion per annum in oil imports as well as domestic natural gas production.

The gas saved could be diverted to the power plants in a bid to tackle prolonged outages across the country, said the ministry in a summary sent to the Economic Coordination Committee (ECC).

The government is seeking to save the CNG industry from collapse as it has invested Rs450 billion and provided jobs directly for about 300,000 skilled and unskilled workers and indirectly for 150,000 people.

Approximately 3.7 million vehicles, equipped with CNG conversion kits, rely on gas in place of petrol across the country.

The ministry has also unveiled a plan of fiscal incentives including exempting LNG imports from sales tax and gas infrastructure development cess (GIDC) to make it affordable for the people and maintain 30% difference between prices of petrol and CNG.

At present, all bulk buyers of natural gas are paying GIDC at Rs300 per million British thermal units (mmbtu) and 17% sales tax.

“This plan will promise CNG supply for 24 hours a day against the current 72 hours per month only. CNG will be 30% cheaper compared to petrol,” a ministry official remarked.

Since CNG stations would switch to imported LNG, the domestic gas production would be diverted to other bulk commercial buyers and the government would be able to continue collecting the same amount of GIDC and sales tax, the ministry said, adding it would have no negative impact on the country’s revenues.

After the government awarded contract for construction of an LNG terminal at port, CNG is the first sector that has taken the initiative to cash in on the opportunity and ensure sustainability of the industry.


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On the other side, the government will be able to divert the entire 628 million cubic feet of natural gas per day (mmcfd), consumed by CNG stations, to the power plants to control and cut outages.

“This is a win-win situation for the two sides,” the official said, pointing out that earlier independent power producers and the industrial sector had refused to give up domestic gas consumption and switch to LNG.

In the summary, the ministry stressed that savings of about $1.4 billion per annum in oil imports would have a significant positive impact on the country’s balance of payments and foreign exchange reserves while reducing the current account deficit.

“If the CNG industry is shut down, the vehicles relying on gas will have no option but to consume petrol, which will entail a significant increase in the oil import bill,” the ministry said.

At present, the CNG stations require 478 mmcfd of gas for meeting the needs of vehicles and around 150 mmcfd for power generation to run the compressors. If the CNG industry produces its own electricity with re-gasified LNG, 500 to 600 megawatts can be saved.

“Keeping in view the demand and supply projections, gas supply to CNG stations will further decrease in coming years and most likely be completely cut off in the next winter,” the ministry said. “As such, the future of the industry is bleak.”

According to the ministry, the replacement of petrol by environment-friendly LNG will help improve carbon footprint of the country by almost six million tons of greenhouse gas emissions per annum, which will offset the emissions from upcoming coal-based power projects.

It stressed that urgent steps should be taken for the sustainability and survival of the CNG industry, which also gives financial relief to the public by providing low-cost transport fuel for passenger vehicles and goods carriers.

Published in The Express Tribune, August 6th, 2014.

Gas supplies: Fearing public anger, govt delays decision on price hike By Our Correspondent


ISLAMABAD:

Apparently perturbed by the call of a long march by the Pakistan Tehreek-e-Insaf (PTI) and Pakistan Awami Tehreek (PAT), the government could not take a decision on whether to issue policy guidelines to the energy regulator for passing the burden of disputed Rs49 billion on to gas consumers.


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It fears that if the consumers are further burdened, it will spark an angry response from them because of an increase in gas prices, officials say.

The policy guidelines, proposed by the Ministry of Petroleum and Natural Resources to bail out gas distributing companies, will push up gas prices by Rs35 per million British thermal units (mmbtu).

Government officials are of the view that Imran Khan’s PTI and Tahirul Qadri’s PAT may exploit the increase in gas prices to the advantage of their protest movement to topple the government.

The PML-N administration is already facing scathing criticism because of hours-long power outages, which sometimes extend up to 15 hours, across the country. Even the Pakistan Peoples Party (PPP), the main opposition which has formed its government in Sindh, has issued a warning, pressing the central government to address the load-shedding issue within a month.

The National Accountability Bureau (NAB) has put the government in trouble by suggesting that the Oil and Gas Regulatory Authority (Ogra) should recover the impact of increase in the unaccounted-for-gas (UFG) ceiling amounting to Rs49 billion from the two gas utilities.

“If this is recovered from the utilities – Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) – they will go bankrupt immediately and gas supply may come to a halt,” said an official of the petroleum ministry while talking to The Express Tribune.

Sources pointed out that gas prices had already risen following increase in gas infrastructure development cess (GIDC) and the shifting of Rs49-billion burden to consumers would lead to further rise in tariff.

The Economic Coordination Committee (ECC), in its meeting held last month, put off the plan to shift the Rs49-billion burden to the consumers and directed the petroleum ministry to review it in the light of legal opinion in a way that it did not affect court proceedings or investigations into the Ogra scam.

According to officials, legal expert Abid Hassan Minto, while giving his detailed opinion, suggested that the proposed policy guidelines would in no way impede investigations by NAB following the Supreme Court’s decision in this connection.

The petroleum ministry has sent its summary again to the ECC, seeking issuance of the policy guidelines to Ogra.

The ministry has proposed that the following should be provisionally allowed as gas sales volumes for UFG benchmarking. (i) Volume pilfered by unregistered consumers but detected and determined by the companies (ii) volume against the minimum bill charged from domestic consumers (iii) volume consumed in law and order-stricken areas and (iv) impact of change in the bulk-retail ratio on UFG using 2003-04 as the base year.

“However, the real issue is the current political situation in the wake of the protest call given by PTI leader Imran Khan and PAT chief Tahirul Qadri, forcing the government to delay the decision,” an official said.


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Gems and jewellery: Pakistan should unearth wealth, exploit advantage By Our Correspondent


LAHORE:

Housing mountain ranges and land belts rich in various minerals and precious gems, Pakistan has tons of unearthed wealth.

But unfortunately, the country has not been able to benefit from its natural resources due to a lack of skills, technology and knowledge in processing the mining material. This was highlighted by Shah Faisal Afridi, president of Pak-China Joint Chamber of Commerce and Industry (PCJCCI).

China, being the world’s largest consumer market for gems and jewellery, can be a potential market for Pakistan’s products.

“Pakistan needs cooperation of the Chinese companies for promoting the export of gemstones to China,” Afridi said after meeting the chief of Association of Chinese Companies in Pakistan Wang Zihai.

Pakistan has huge resources of gemstone with several varieties at par with international standards in Azad Jammu and Kashmir and northern areas of the country. Pakistan has a potential yield of 800,000 carats of ruby, 875,000 carats of emerald and five million carats of peridot, which remain unutilised.

Afridi lamented that these resources could not be tapped up to an optimal level due to the lack of appropriate cutting and polishing facilities in the country.

He invited the public sector organisation for the promotion of gems and jewellery to explore opportunities available in the Chinese market. He also urged the Trade Development Authority of Pakistan (TDAP) to organise exclusive exhibitions for gemstones and jewellery in China.

In 2013, gems and jewellery worth $1.18 billion were exported after the expo in Karachi. Afridi suggested collaborating with China to learn latest techniques for cutting and polishing of gemstones. He suggested taking the national productivity organisation on board, adding that Chinese professionals in this sector should be invited to train the Pakistani labour force for manufacturing and designing state-of-the-art jewellery.

In Pakistan, the current level of gemstones trade is expected to be more than $50 million annually. Furthermore, most of the exports are in the form of rough stones, mainly due to a lack of sophisticated processing industry.


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Association of Chinese Companies President Wang Zihai in Pakistan informed that China started focusing its attention on global gem and jewellery industry in 1978 and with the passage of time, the country became a rapidly growing consumer market for the sector.

He said, in 1980, only 20,000 people in China were involved in the jewellery industry. Thirty years later, more than three million are employed in this field, however, rising costs of labour has created challenges for the manufacturing sector, making room for Pakistan.


Corporate results: Allied Bank records healthy profit By Our Correspondent


KARACHI: Allied Bank Limited (ABL) posted a profit after tax of Rs7.1 billion for the first six months of 2014, which is up by 28.4% from the comparable six-month period of 2013.

According to a notice sent to the Karachi Stock Exchange (KSE) on Tuesday, ABL’s earnings per share for the Jan-Jun period increased to Rs6.2 from Rs4.83 a year ago.

The bank’s net mark-up income after provisions for the six-month period stood at Rs12.8 billion after increasing by 24% from Rs10.3 billion recorded for Jan-Jun 2013.

According to Iqbal Dinani of BMA Capital, the increase is primarily attributed to 67 basis points higher six-month Karachi Inter-bank Offer Rate (KIBOR) as well as increased PIB accretion during the first quarter of 2014.

The bank’s non-core income for Jan-Jun remained Rs6.1 billion, registering an increase of 25.7% over the last year when it totalled Rs4.9 billion.

Dinani says the substantial rise in ABL’s non-interest income during the six month period is on account of higher capital gains of Rs1.6 billion during the period. Capital gains stood at Rs786.1 million during Jan-Jun 2013.

Along with the result, the board also announced second interim cash dividend of Rs1.5 per share, bringing total dividend to Rs2.75 per share for the first six months of 2014.



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Corporate results: OGDC notches up profit of Rs123 billion By Saad Hasan


KARACHI:

Oil and Gas Development Company (OGDC) on Tuesday announced its financial results for fiscal year 2013-14 with a profit of Rs123.914 billion, up 35.7% over the previous year on the back of higher prices for oil and gas.

The state-run petroleum exploration giant also announced a final cash dividend of Rs3 per share, taking full-year payout to shareholders to Rs9.25 per share.

OGDC’s revenues increased 15% to Rs257 billion despite a 2% drop in its overall petroleum production in oil equivalent terms. Sales went up as a slight increase in oil production, which fetches a higher price, outshone the decline in gas output.

“Average oil production stood at 42,000 barrels per day (bpd) in fiscal year 2013-14 against 41,000 bpd in the previous year,” said Vahaj Ahmed, analyst at Topline Securities, citing the data provided by the Pakistan Petroleum Information Services (PPIS).

“On the other hand, average gas production was down 3% to 1,181 million cubic feet per day (mmcfd) against previous year’s 1,212 mmcfd.”

OGDC has yet to release detailed financial statements. PPIS is the official database that is used by all industry executives.

During 2013-14, OGDC made just two gas discoveries, which according to initial tests yielded just 7.84 mmcfd of gas and 65 bpd of condensate.

The results showed a sharp decrease in exploration and prospecting expenditure to Rs8.722 billion from previous year’s Rs14.97 billion, but analysts said that was because of a large tax adjustment in 2012-13 and write-offs involving dry wells.

Setting financial results aside, analysts don’t see much improvement considering the size of the company. “They aren’t doing enough,” said Vahaj Ahmed. “The number of wells being drilled has gone down as well.”

Huge profits also mask the liquidity strains suffered by OGDC, which has billions of rupees stuck in inter-corporate circular debt.

After it mails the final dividend, OGDC would have paid out Rs40 billion from its profit of Rs123 billion in cash dividends.


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Industry officials say with major oil and gas fields depleting fast, petroleum exploration firms have to spend more to employ hi-tech machinery to dig deeper to find hydrocarbon reserves. OGDC has 39 operating licences.


Regional grouping: Visa-on-arrival facility proposed for SAARC By APP


ISLAMABAD: The Saarc Chamber of Commerce and Industry demanded visa-on-arrival facility in Saarc countries to boost socio-economic prosperity in South Asia.

“Free movement of business persons in the region is crucial and multiple-entry visa policy must be adopted on a reciprocal basis,” Saarc CCI Pakistan delegation leader Iftikhar Ali Malik said as he addressed the concluding session of a special meeting of SCCI.

He said that in prevailing global economic scenario, India and Pakistan, the two most powerful members of Saarc, should enter a suitable trade regime. “Time has changed the concept of economic prosperity and member countries have taken the lead. Saarc countries badly need to work together with a shared vision and stronger linkage to eliminate poverty and bring self-reliance and prosperity to the region. We need to fully exploit the indigenous natural resources and untapped mineral deposits, to strengthen economic conditions on the pattern of trade blocs like Nafta, EU, Asean and COMESA. “

He said that it was the need of the hour that all eight nations in South Asia must work to meet common challenges, especially those which threaten security, peaceful co-existence and progress.

Saarc is home to more than one-fifth of the world population, making it the largest entity. The region comprises 45% of young population and possesses 12% of the global natural resources and untapped resources.

Talking over the unique characteristics each country has, he said India was the fourth largest economy, Pakistan was a hub of textiles, Bangladesh was the centre of the garments industry, while Nepal, the Maldives and Sri Lanka were emerging destinations of tourists from all over the world.

It is unfortunate that the world development indicators present a bleak picture of the region on global economic fronts despite having enormous potential. The contribution of Saarc countries in global GDP is less than 2 % and its share in exports is only 1.5 %, which does not reflect the potential, Malik added.



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Businessmen in India to discuss trade potential By APP


ISLAMABAD: In an effort to improve business relations, a task force of the Pakistan-India Joint Business Forum (PIJBF) will meet in New Delhi on August 7 to explore the possibilities for the promotion of auto, engineering and agriculture sector trade between the two countries.

Pakistan Business Council sources told the media on Tuesday that the two-day task force meetings will be followed by another meeting of the PIJBF on August 8.

The Pakistani delegation is also scheduled to visit Pakistan’s high commission in New Delhi on August 6.

The members of the forum from either side will discuss ways and means for accelerating Pak-India bilateral trade.

Implementation on recommendations of task forces, removal of non-tariff barriers and visa related issues will be part of the agenda. The delegation comprises 25 members led by Syed Yawar Ali Shah.

India Pak Joint business forum co-chairman (Indian side) Sunil Kant Munjal, members of the forum and officials from the ministry of commerce and external affairs will represent India at the meeting.

The forum was constituted by the governments of both countries in 2013 by including members from private and public sectors with a view to taking viable practical steps for advancing their trade relations.

The first meeting of the forum was held in Islamabad in June 2013 with the second in October 2013 in New Delhi. The third meeting was held in February 2014 in Lahore.

Member of the forum, Iftikhar Ali Malik who is already heading the SAARC CCI delegation to India will join the meetings from New Delhi.



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CAC summit: An exhibition to promote Pakistan’s agriculture By Our Correspondent


LAHORE: The Pak-China Economic Corridor will open up new avenues of cooperation in the agriculture sector as it would pave the way for the transfer of technology pertaining to agrochemicals, pesticides, fertilisers and seeds.

This was the upshot of speeches delivered at the opening ceremony of the first China Agro Chemical (CAC) Pakistan Summit jointly organised by the Lahore Chamber of Commerce and Industry (LCCI) and CCPIT Sub Council for Chemical Industry.

There was a consensus among all speakers that the Pak-China Hybrid Wheat Industrialisation Cooperation Agreement would help develop Pakistan’s agriculture sector through new seed variety. “The CAC Summit and Exhibition is a unique opportunity for Pakistan’s agriculturists as it would enable them to learn about the Chinese expertise in the agriculture sector,” said Punjab Minister for Agriculture Dr Farrukh Javed. “Chinese cooperation in all fields of the economy is matchless. We are striving to educate the farming community as research would be useless if it does not reach the real farmer.”

He said the Punjab government was taking every possible step to strengthen the agriculture sector and that was evident after it announced a flat rate of Rs10.35 per unit for tubewells. A subsidy of Rs14 billion for the agriculture sector would be disbursed after consulting the stakeholders so that the benefit reaches the right quarters.

LCCI President Engineer Sohail Lashari stressed the need for public-private dialogue as a prerequisite to revolutionising the agriculture sector. He said that it was the only area where a little attention could achieve a miracle and it did not need a huge amount of electricity.

“Pakistan is the only country in South Asia to have a CAC exhibition and it will strengthen its agriculture sector. The government will have to strengthen the institutional framework to provide support to this sector,” he said.

He also called for construction of water reservoirs as its shortage could pose a threat.

Vice Chairman CCPIT Sub-Council for Chemical Industry Ma Chunyan said the trade of pesticide has an important role in the total two-way business of $12 billion. “In 2013, pesticides amounting to $172 million were imported from China while fertilizer imports remained at $309 million.”

She said that Chinese cooperation with Pakistani agriculturists would write new success stories.



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UK MPs demand end to Israeli restrictions on Palestinian land By AFP


WEB DESK: Excessive Israeli restrictions on Palestinian territories cannot be justified on the grounds they protect the Jewish state, a British parliamentary committee said on Wednesday.

“We challenge the assertion that restrictions which curtail economic development in the OPTs [Occupied Palestinian Territories] are based on Israel’s security needs and can be justified on security grounds,” the report by the International Development Committee said.

The paper expressed particular concern about the situation in Hebron, the Palestinian city in the southern West Bank.

“We were shocked by what we saw during our visit to Hebron. While we fully appreciate Israel’s security concerns, these in no way justify the present restrictions on Palestinians in Hebron, which affect their livelihoods, economic development and security,” the report said.

The group, which monitors the British government’s ministry of international development, called for London and Europe to speak out against restrictions that prevent economic development “as a matter of urgency”.

The call comes a day after Baroness Sayeeda Warsi resigned as a government minister in protest at what she said was a “morally indefensible” failure by the government to condemn Israel’s killing of civilians in Gaza.

The lifting of an eight-year blockade of Gaza has been a key demand of Hamas for peace.

But West Bank restrictions in particular, such as the prevention of Palestinian businesses investing in the Israeli-controlled zone, should be opposed by Britain and other European countries, the report said.

It added that issues such as greater access to water and construction permits should be addressed regardless of the current conflict, which has killed 1,875 Palestinians including 430 children, 64 Israeli soldiers and three civilians in Israel.

The committee said it was “extremely concerned” that Israel could further expand settlements, and said Britain and other European countries should “stress to the Israeli authorities the unacceptability of the present situation”.

The British government should also examine whether guidelines on the labelling of produce made in Israeli settlements to allow consumers to avoid buying them has been implemented by retailers, the report said.


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Seven Summits in Seven Continents: Brother-sister duo receive rousing welcome By Maha Mussadaq


ISLAMABAD:

Mountaineer Mirza Ali wore his white “I love Pakistan” T-shirt at each of the 55 airports he passed through while helping his sister during her successful ascent of the highest peaks on each of the world’s seven continents. Addressing a ceremony celebrating the successful completion of the Adventure Diplomacy Expedition, Ali, 30, and his sister Samina Baig made an appeal to the government to launch a special fund for adventure sports in Pakistan.

Having made headlines for being the first woman of Pakistani or Muslim birth to summit Mount Everest in May 2013, Baig’s enthusiasm and courage inspired many across the world.

She can’t reach the dais, but she can reach the highest peaks of the world, Mirza Ali quipped, referring to his slight sister.

The 22-year-old said, “I’m from a village with no telephone or electricity. We need to walk for three days to reach the nearest town with such facilities.”

“What was close to us was a school that taught me all that I know,” she said with a smile.

About the eight months of travelling and climbing, she said, “I used to listen to Ali’s stories. He has been climbing mountains for the last 12 years as a guide, expedition leader and trainer in the Karakoram, Himalaya and Hindukush ranges. That inspired me to reach the highest peaks.”

Ali accompanied her on her trek to Everest, but chose to stay behind while she went to the summit alone, thus making a statement about women’s empowerment.

That success encouraged them to reach greater heights and become a part of the ‘Seven Summits in Seven Continents’ mission.

They spend eight months in grand mountains including Argentina’s Mount Aconcagua Mount Vinson Massif in Antarctica, Indonesia’s Carstensz Pyramid, Mount McKinley in the US, and Kilimanjaro in Tanzania, before ending with Russia’s Mount Elbrus on July 24.

The Serena Group, in collaboration with The Adventure Diplomacy Group (ADG), consisting of the Embassies of the Russian Federation, Argentina, Nepal, the US, Argentina and Indonesia supported the mission. The Ambassadors of these countries were all present at the event and lauded the siblings’ efforts.


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“These siblings have shown us that one can achieve anything that they want,” said Argentine Ambassador Rodolfo Martin Saravia.

“Samina Baig and Mirza Ali are the stars of the evening and role models for the world,” said US Ambassador Richard Olson.

Speaking to The Express Tribune, Ali said that it him seven years to work and save money and seek assistance from international donors to climb Mount Everest. “It would be great for the government to set up a special adventure fund to support sports in the country.”

Speaking to The Express Tribune, Sartaj Aziz, special advisor to the prime minister on foreign affairs and national security, said that recent killings of mountaineers had created “problems” regarding tourism in the north of the country. He said such stories set examples and bring countries together. “It is an inspiriting initiative and the government will support the area with necessary security and resources if required”

Serena Hotels Chief Executive Aziz Boolani said that a year ago, this desire of mountaineers was made into a reality with the support of the Adventure Diplomacy Group and the embassies. He said while the duos were icons for Pakistan the purpose was not just the expedition but a message of youth and gender equality.

The siblings are natives of Shimshal valley in upper Hunza, near the Chinese border. Pictures of the expedition taken by Mirza Ali were exhibited at the event, with sales revenue to go towards assisting IDPS from North Waziristan.


Precautions: Anti-dengue drives under way in twin cities By APP


ISLAMABAD:

The District Health Department has started a campaign in the capital’s rural areas to destroy dengue larvae and prevent the outbreak of gastroenteritis in the monsoon.

District Dengue Control In-charge Dr Najeeb Durrani said the department is fumigating potential dengue breeding sites in the city’s suburbs. He said 260 lady health workers and staff of 17 population welfare centres are participating in the door-to-door drive.

The department has sprayed some 700 places as part of its anti-dengue measures this year, he said, adding that it has also held awareness campaigns in the rural areas.

The health teams are also disinfected water reservoirs to prevent the spread of gastro.


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Durrani appealed to the public to properly dispose of waste, use boiled water and wash fruits and vegetables before consumption.

Meanwhile, an anti-dengue fumigation campaign and survey is also under way in 46 union councils of Rawal Town in Rawalpindi.

Rawalpindi District Health Officer Dr Tahir said the campaign will continue till October and 190 lady health workers are part of the campaign in Rawalpindi.


Water-borne diseases: ICT to form rapid response force By Our Correspondent


ISLAMABAD: The Islamabad Capital Territory (ICT) Administration will establish a rapid response force to mitigate a possible outbreak of water-borne diseases owing to the monsoon rains. According to a press release issued by the ICT health department on Tuesday, in order to prepare for outbreak of water-borne diseases in the current monsoon spell as well as extreme summers, authorities have planned to establish rapid response teams comprising sanitary inspectors and lady health workers (LHWs). The LHWs and inspectors would work at the community level and visit every house in their catchment area to chlorinate water reservoirs. They will also educate community members on observing personal hygiene and advise them about the use of ORS. Meanwhile, field outreach teams would educate the community about the importance of using boiled water for drinking, adding aqua tablets in drinking water during epidemics, effectively washing vegetables and fruits before use and strict use of soap.


Fundamental rights: ‘245 does not curtail court’s powers’ By Our Correspondent


RAWALPINDI:

The imposition of Article 245 of the Constitution of Pakistan does not curtail the power of the high court to entertain petitions relating to fundamental rights under Article 199.


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Islamabad High Court (IHC) Justice Athar Minallah remarked on Tuesday that courts themselves determine their jurisdiction and the notification will not curtail their powers.

There is no hesitation that “this court has the jurisdiction to proceed with petitions filed under Article 199,” he further remarked.

On Monday, Islamabad’s high court had stopped accepting petitions under Article 199 of the constitution due to the application of Article 245 in the city on July 24.

The petitions were returned based on clause three of the article, which reads, “A high court shall not exercise any jurisdiction under Article 199 in relation to any area in which the Armed Forces of Pakistan are, for the time being, acting in aid of civil power in pursuance of Article 245 provided that this clause shall not be deemed to affect the jurisdiction of the high court in respect of any proceeding pending immediately before the day on which the Armed Forces start acting in aid of civil power.”.

on Tuesday, lawyers whose petitions were returned by the IHC registrar office appeared before the court of Justice Athar Minallah alongside Islamabad Bar Association President Naseer Kayani and Nayab Hassan Gardezi.

Advocate Gardezi argued before the IHC bench that by invoking Article 245, the federal government has curtailed the powers of the high court, which goes against the independence of the judiciary. Justice Minallah observed that the notification does not mention any reason for invoking Article 245.

The federal government’s reply, submitted by the attorney general’s office, defended the proclamation of Article 245, but made no mention of IHC jurisdiction in cases regarding Article 199.

On July 28, four days after Article 245 was applied, Kayani challenged its imposition through his counsel, Gardezi. That case is due for hearing on Wednesday, with Justice Shaukat Aziz Siddiqui as the presiding judge.


Partial pause: LHC extends stay order against metro bus By Our Correspondent


RAWALPINDI:

The Rawalpindi bench of the Lahore High Court (LHC) on Tuesday extended the stay order on the construction of the Islamabad-Rawalpindi Metro Bus Project in a specific


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area after two petitioners had moved the court alleging alteration in the original master plan for political reasons.

LHC Justice Shah Khawar, while hearing the petitions, extended the stay order till August 12 and sought replies from the Punjab government and Rawalpindi Development Authority.

On July 18, a stay order was issued by LHC Justice Ibadur Rehman Lodhi on the extent of the disputed property of the petitioners near Rehmanabad.

The main petitioner, Sheikh Iftikhar Adil, is the owner of a local newspaper whose office building, according to him, will be demolished due to an alteration in the original master plan by members of the ruling party. The other petitioner is Risal Khan, who lives next to the building owned by Adil.

Adil maintained that his building was not on the bus route in the original master plan that was prepared by Nespak consultants. In that plan, some plazas alongside Murree Road that belong to a sitting provincial assembly member of the Pakistan Muslim League-Nawaz and his relatives were to be demolished, said Adil.

He alleged that in the altered plan they decided to demolish his building instead and termed the act illegal.

The other petitioner, Risal Khan, through his counsel, maintained that the original master plan was altered due to the political victimisation of his neighbour. Khan’s counsel informed the court that his client was being victimised in someone else’s battle.

He claimed that Adil’s son was running against Metro Bus Project Chairman Hanif Abbasi in the 2013 general elections and this is why the plan was altered to demolish Adil’s office building.

The counsel said the decision was taken due to political reasons and requested the court to grant a stay order. The court, while extending the stay order, adjourned the matter till August 12.

Meanwhile two more petitions have been filed in the court against the metro bus project by shopkeepers of the Committee Chowk.


Better coordination: OIC secretary general visits Comstech By News Desk


The secretary-general of the Organisation of the Islamic Conference (OIC) Iyad Ameen Abdullah Madani visited the organisation’s Ministerial Standing Committee on Scientific and Technological Cooperation (Comstech)’s Secretariat on Monday.


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According to a press release, Comstech Coordinator General Dr Shaukat Hameed, Minister for Science and Technology Zahid Hamid and ambassadors of various OIC member countries were present on the occasion.

Dr Hameed briefed guests about Comstech’s functions and achievements.

The presentation also discussed how science and technology can play a vital role in the socio-economic development of OIC member countries.

Hamid applauded Comstech’s role in the development of science and technology and promised the government’s full support to the organisation.

Madani extended his complete support to Comstech and emphasised the need for information and resource sharing among OIC members.

Madani also requested representatives of OIC members to persuade their heads of states to attend the Comstech general assembly to be held next year in Islamabad.

Published in The Express Tribune, August 6th,2014.

Concept cars: NUST race car finishes in top half at international competition By Our Correspondent


ISLAMABAD: Named after late Naval Captain Nadeem Ahmed (Shaheed), the concept car manufactured by the students of National University of Science and Technology (NUST) improved its position by 33 steps in comparison to its performance last year and stood 51st out of 106 teams from all over the world.

The annual formula student competition that was held at the famed Silverstone Circuit in England between the 9th and 14th of July also declared Team Pakistan as the team with the best media support, as the participation of the car at the competition was covered 88 times in the print media and 30 times in the electronic media, said a press release.

Shah Talha Sohail, driver of the NAS 14 sports car and a member of the team, paid special kudos to the Pakistani media for supporting the car. “When we arrived at Silverstone, everyone was skeptical about the performance of the team among [opponents from] developed nations, however the excellent support by the Pakistan media and its recognition at the competition was a big boost for the whole team ahead of the competition,” he stated after his return from the trip.

According to Talha, the NUST team managed to surpass a number of experienced teams including India, Turkey and Egypt. He shared that NAS14 also managed to clear five out of six inspections and tests. “Last year none of the tests were cleared,” he remarked. The Formula NUST Racing team was supported by Interactive Group, O3b Networks and Sri Lanka’s EZY


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Racing. Interactive Group CEO Shahid Mahmud and EZY Racing CEO Shafaraz Hamzadeen paid tribute to the young NUST students for their “big leap forward”.

Formula Student, run by the Institution of Mechanical Engineers, challenges student engineers from all over the world to design, build and race a single seat racing car in one year. These sports cars are then judged on their speed, acceleration, handling and endurance in a series of time-trial races, while the teams are also tested on various counts..


Celebrating August 14: H-8 college plans events, competitions By News Desk


The Islamabad Model Postgraduate College, H-8 has organised a series of events to celebrate Independence Day, with a committee meeting held on Tuesday to review preparations.

The schedule of events was decided by the eight member ‘celebration committee’ in a meeting presided by the principal of the college, Professor Khurshid Ahmed Shakoori.

The principal directed members of the committee to divide the work and constitute sub-committees for smooth functioning of the events. The committee has finalised several activities which include a competition of national songs, debates, quiz and essay competitions, seminars, dramas and poetry competitions.

The college has been decorated with banners, flags and posters. Apart from the students and teachers, the non-teaching staff has also been involved in the preparations.


Developing research: Media Development Trust and FAST sign MoU By News Desk


Media Development Trust (MDT) and FAST-National University of Computer and Emerging Sciences signed a memorandum of understanding (MoU) on Tuesday to work together for mainstreaming research in Pakistan.


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The ceremony was held at FAST where the varsity’s School of Management Department Head Adil Amin Kazi and Media Development Trust President and Mishal Pakistan CEO Amir Jahangir signed the agreement.

According to the MoU, both organisations would work towards industry-academia collaboration to create research opportunities for students and faculty in the media.

The MoU will encourage excellence in research by awarding ‘Trust Gold Medals’ every year for students of Business Administration and Management Sciences who achieve first positions in the Bachelors and Masters programmes.

Jahangir said they are working to bridge the gap between academic research and industry practices.



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OPEN MARKET FOREX RATES Updated at: 6/8/2014 7:36 AM (PST)

Currency Buying Selling Australian Dollar 91.5 91.75 Bahrain Dinar 262.25 262.5 Canadian Dollar 90 90.25 China Yuan 15.85 16 Danish Krone 17.7 17.85 Euro 132 132.25 Hong Kong Dollar 12.55 12.7 Indian Rupee 1.63 1.66 Japanese Yen 0.966 1.02 Kuwaiti Dinar 348.75 349 Malaysian Ringgit 30.6 30.85 NewZealand $ 84 84.25 Norwegians Krone 15.5 15.65 Omani Riyal 256.5 256.75 Qatari Riyal 27 27.25 Saudi Riyal 26.1 26.35 Singapore Dollar 78.6 78.85 Swedish Korona 14.25 14.4 Swiss Franc 108.85 109.1 Thai Bhat 3.03 3.08 U.A.E Dirham 26.75 27 UK Pound Sterling 166 166.25 US Dollar 98.75 99


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INTER BANK RATES Updated at: 6/8/2014 7:36 AM (PST)

Currency Bank Buying TT Clean

Bank Selling TT & OD

Australian Dollar 91.76 91.94

Canadian Dollar 90.17 90.35

Danish Krone 17.71 17.75

Euro 132.06 132.33

Hong Kong Dollar 12.70 12.72

Japanese Yen 0.9593 0.9612

Saudi Riyal 26.24 26.29

Singapore Dollar 79 79.16

Swedish Korona 14.3 14.33

Swiss Franc 108.5 108.72

U.A.E Dirham 26.79 26.84

UK Pound Sterling 165.94 166.28

US Dollar 98.4 98.6


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Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) As on Wed, Aug 06 2014, 03:45 GMT

Metal Symbol PKR for 10 Gm

PKR for 1 Tola

PKR for 1 Ounce

Gold 24K XAU 41,006 47,779 127,546

Palladium XPD 26,955 31,407 83,841

Platinum XPT 46,326 53,977 144,093

Silver XAG 631 735 1,961

Gold Rates in other Major Currencies

Currency Symbol 10 Gm 1 Tola 1 Ounce

Australian Dollar AUD 446 520 1,388

Canadian Dollar CAD 455 530 1,415

Euro EUR 310 362 965

Japanese Yen JPY 42,540 49,566 132,317

U.A.E Dirham AED 1,524 1,775 4,740

UK Pound Sterling GBP 246 286 765

US Dollar USD 415 483 1,290

* These rates are taken from International Market so there may be some fluctuation from Local

Market.

http://www.forex.pk/bullion-rates-gold-24k-xau-pkr.php

http://www.forex.pk/bullion-rates-palladium-xpd-pkr.php

http://www.forex.pk/bullion-rates-platinum-xpt-pkr.php

http://www.forex.pk/bullion-rates-silver-xag-pkr.php

http://www.forex.pk/bullion.php?base=AUD&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=CAD&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=EUR&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=JPY&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=AED&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=GBP&curr=XAU&type=ounce

http://www.forex.pk/bullion.php?base=USD&curr=XAU&type=ounce

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