News Updates

Thursday, August 28, news 2014 updates

Office # 05, Ground Floor, Arshad Mansion, Near Chowk A.G Office, Nabha Road Lahore. Ph. 042-37350473 Cell # 0300-8848226 NEWS OF Mail to: [email protected], [email protected] THE DAY PLP NEWS ALERTS EMAIL No. 196-2014 NEWS HEADLINES Top Stories ...... 5 Government shoots itself in the foot again ...... 5 Prime Minister won't step down ...... 6 Nawaz meets Khurshid, Fazl, others ...... 7 Prime Minister uttered not a single word on Lahore killings: Gilani ...... 7 Jaffar's proposal of deputy Prime Minister not PML-N's: Dar ...... 8 Constitution Avenue: PTI, PAT given one day to clear one lane for traffic ...... 8 Imran to make important announcements today ...... 9 PTI Punjab MPAs submit resignations ...... 10 ECP rejects vote rigging allegations ...... 11 Punjab Governor spends busy day...... 11 THE RUPEE: mixed patterns ...... 12 6,600 megawatts coal projects: date for submission of EoIs extended till September 29. Error! Bookmark not defined. India court pressures Modi on 'criminal' ministers ...... 13 MoU for mass transit train signed: Zardari attends Beijing moot ...... 14 LeT links: US dubs Lahore money-changer 'terrorist' ...... 14 UK police arrest man in Imran Farooq case ...... 15 General Raheel briefed about security situation in Karachi ...... 15 Pakistan, India hold first flag meeting after border firing ...... 16 Turkey ruling party crowns Davutoglu as Erdogan successor...... 16 French fraud case: IMF's Lagarde put under investigation ...... 17 Israel closes Golan area as Syria rebels seize crossing...... 18 Abdullah vows to reject result of Afghan election audit ...... 19 Index slips below 27,000-level ...... 19 LSE index drops by 20.49 points ...... 20 ISE index sheds 39.05 points ...... 21 BRIndex30 loses 380.18 points ...... 21 Business and Economy: Pakistan ...... 23 China wants to enhance investment in energy, health, infrastructure sectors: Sino-Pak JCC meeting held in Beijing ...... 23 'GATE-Pakistan' launched in Berlin ...... 23 Dar, Chinese envoy discuss economic cooperation ...... 24 MoC looking for new high-growth sectors of exports to UK ...... 25

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PLP NEWS ALERTS EMAIL No. 196-2014 Punjab government approves six uplift schemes worth Rs 6,826 million ...... 26 PIAF-Founders Alliance for revival of economic activities ...... 27 Consumer rights protection vital to economic growth: Punjab Governor ...... 27 LCCI, Jakarta Chamber sign MoU ...... 28 DHA project in Multan: 'Rs 80 billion economic activities likely in five years' ...... 29 Activity at Karachi and Qasim ports ...... 29 Local pharma drugs: UoP plans to conduct Bioequivalence Study ...... 31 Karachi Airport: Unusual security causes flight delays ...... 32 Piarea to launch official magazine on August 30 ...... 32 MoU for mass transit train signed: Zardari attends Beijing moot ...... 33 NHA projects on BOT basis: whistleblower Pakistan points out violation of PPRA rules ...... 33 Company News: Pakistan ...... 35 Maple Leaf Cement ...... 35 Taxation: Pakistan ...... 38 Sri Lankan Customs detains two Pakistan containers ...... 38 Container scandal: NAB yet to prove allegations against customs agents ...... 38 ATL to be updated on fortnightly basis: FBR ...... 39 Dispute resolution: FTO castigates tax departments for poor response ...... 40 'Civic bodies share in OZT not increased' ...... 42 Cotton and Textiles: Pakistan ...... 43 Cotton market: persistent demand helps prices remain firm ...... 43 Central Executive body: PCGA's ginner group elected unopposed ...... 44 Trade negotiations: APTMA asks government to ensure level-playing field with India ...... 44 Agriculture and Allied: Pakistan ...... 46 'Abiyana recovery must for better canal system' ...... 46 Four flour mills KP government cancels wheat quota ...... 46 Daily trading report of PMEX ...... 47 Cattle reaching local markets: KMC officials directed to initiate vaccination ...... 47 Channel closure caused by anchored fishing boats: KFHA ...... 48 Fuel and Energy: Pakistan ...... 50 6,600 megawatts coal projects: date for submission of EoIs extended till September 29...... 50 Rs 71 million released for gas supply in Rawalpindi: SNGPL...... 51 Fuel and Energy: World ...... 52 Crude oil little changed after oil inventory draw, Cushing build ...... 52 Sinopec says first half net profit up 7.5 percent ...... 53

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PLP NEWS ALERTS EMAIL No. 196-2014 Banking & Finance ...... 54 EMO becomes popular money transfer service ...... 54 Two ZTBL branches opened ...... 54 Markets ...... 56 LSE downs by 20.49 points ...... 56 BR Research: All ...... 57 The GIDC dent ...... 57 Struggling PAKRI ...... 58 UPFL delights ...... 59 PPL rolling with oil production ...... 60 BAHL: as smooth as it gets ...... 61 Lafarge Cement: losing ground? ...... 62 Lotte and losses: No love lost!!! ...... 64 Crime News...... 66 Karachi: Police seizes counterfeit medicine factory ...... 66 Islamabad: Gang of dacoits and female drug peddler arrested ...... 66 Rawalpindi: 11 outlaws arrested; drugs, weapons siezed ...... 67 Miscellaneous News ...... 68 It’s party time! ...... 68 Child labour in Myanmar ...... 69 Varsity rankings: HEC invites feedback on revised criteria ...... 70 Harassment charges: Probe body exonerates QAU professor ...... 71 Peace and justice: Students participate in global cartoon competition ...... 73 PEACEFUL COEXISTENCE: IIUI president’s book published ...... 74 Electoral reform ...... 74 Modi’s first major mistake ...... 75 Redressal: IESCO sets up one-window operation centres ...... 75 OPEN MARKET FOREX RATES ...... 77 INTER BANK RATES ...... 78

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PLP NEWS ALERTS EMAIL No. 196-2014 Top Stories Government shoots itself in the foot again

August 28, 2014

FAZAL SHER, ZULFIQAR AHMAD, WAQAR LILLAH

Pakistan Awami Tehreek (PAT) Chief Dr Tahirul Qadri on Wednesday night announced that negotiations with government had "completely" failed and Thursday (today) would be the day of launch of his 'revolution'. Addressing his followers after holding two rounds of talks with government negotiators Federal Ministers Ishaq Dar and Zahid Hamid, Qadri categorically announced: "dialogue door is deadlocked as there will be no more talks with government and 'revolution' will start from Thursday".

-- Rejection of Qadri's demands of FIR, CM's resignation helps him strengthen his position or rhetoric;

-- MQM hints at joining Qadri's protest;

-- Dangerous deadlock raises the spectre of violence

Praising the efforts of governor Sindh Ishratul Ebad and governor Punjab Chaudhry Mohammad Sarwar towards finding out a solution, Qadri said that Prime Minister Nawaz Sharif was not ready to accept his demands. "What to talk of Chief Minister Punjab Shahbaz Sharif resignation, the PM is not even ready to register an FIR against 21 nominated people, including Nawaz Sharif and Shahbaz Sharif, in the Model Town case."

He averred: "The government delegation after the second round of talks should not visit us again; we gave dialogue a chance till the very end. From now onward, no minister or individual from the government side should try to get to me for talks."

Qadri told his followers that they should return to the sit-in venue after lunch on Thursday at 3pm for Yaum-e-Inquilab (Day of Revolution). He added that he would not make those present in the sit-in to stay longer than one day because a final decision would be made today by people. The PAT chief said, "We presented only two core demands to the government ministers and they sought a couple of hours for getting the premier but he refused to accept our demands," he said.

Qadri urged the residents of Islamabad and Rawalpindi to reach the protest venue till 3pm. Earlier, speaking to participants, Governor Sindh Dr Ishratul Ebad Khan said they wanted to express solidarity with protesters. He said the government should accept all the legitimate demands of Dr Qadri. He added that MQM chief Altaf Hussain also wanted to show solidarity with marchers. He made it clear that the MQM could also join the PAT sit-in, if PAT's genuine demands were not met. An unusual activity was witnessed around D-Chowk where several PAT workers were seen digging up trenches for graves.

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PLP NEWS ALERTS EMAIL No. 196-2014 Prime Minister won't step down

August 28, 2014

ZAHEER ABBASI & NAVEED BUTT

Prime Minister Nawaz Sharif on Wednesday told the parliamentarians that he would not make any compromise on the oath that he had taken for the supremacy of Constitution and rule of law. In his much-awaited speech in the National Assembly, Nawaz Sharif also assured the supportive political parties: "I was elected by the Parliament and I promise you that I would not hurt your feelings and disappoint you".

The resolution adopted by the House for protection of democracy, Parliament and Constitution reflects the voice of 200 million people, he said and added that this display of unity for democracy and parliament would always be remembered. He said all political parties in the parliament except one have supported the rule of law and democracy as well as supremacy of Parliament. He added that such example of unanimity for democracy was not available in the democratic history of the country.

The Prime Minister said that journey for supremacy of Constitution and rule of law would continue and there would be no interruption in the process. "We are heading in the right direction that will put the country on the path to economic development and mega development projects initiated by the present government would continue. Nawaz Sharif also thanked other segments of society, including intellectuals, lawyers, traders and minorities, for supporting this cause.

He said the government was moving towards economic improvement but everything could not be changed overnight. The Prime Minister further stated that the government was giving top priority to electricity generation and Dasu, Diamer Bhasha hydel projects and coal-based projects at Gadani and Port Qasim were in the pipeline. Nawaz said that Rs 55 billion had been released for the purchase of land for Lahore-Karachi Motorway project and there was a plan to develop Gwadar port and Balochistan province. The Prime Minister said his party was a victim of rigging in 2008 elections, as Shahbaz Sharif's and his nomination papers were rejected. "My party accepted the results of elections and did not make a hue and cry over an injustice," the Prime Minister said and added that Pakistan Tehreek-e-Insaf chief had assured him that his party would support government's positive initiatives.

He said the entire house wanted election reforms and a 33-member electoral reforms committee had already been constituted in this regard. He said the reforms agenda must be brought to the committee and all the political parties should give their proposals in this regard.

The Prime Minister stated Pakistan Tehreek-e-Insaf's (PTI) and Pakistan Awami Tehreek's (PAT) agitation and protests had shaken the confidence of investors and the country had suffered a loss of Rs 100 billion while exchange rate was under tremendous pressure. The Prime Minister said it was utmost desire of the government to provide all basic amenities of life to people and alleviate unemployment and poverty.

The prime Minister said that at some appropriate time this House must hold a discussion with a view to investigating to how and why the PAT-PTI agitation started. Later, Federal Minister for

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PLP NEWS ALERTS EMAIL No. 196-2014 Railway Khawaja Saad Rafique said that violence was no solution to any problem while dialogue was the only way to overcome the current political crisis. While briefing the Lower House of the Parliament, he said that both leader Imran Khan and Dr Tahirul Qadir should give direct access to government team for negotiations. He said the government had accepted almost all PTI demands. He said the government also expressed readiness before Qadre that it was willing to resolve the issue of registering an FIR of Model Town tragedy according to law of land or principles of Sharia.

The Minister said that they had also requested PAT chief Tahirul Qadri to give his reforms package to the government, so that it could present it before the parliament for legislation as all political parties wanted welfare and wellbeing of people and the country. He also urged both the leaders to withdraw their deadlines and let the dialogue process move forward for an amicable resolution of all issues. He said if the proposed Judicial Commission came across any organised rigging in election 2013 the government, including the Prime Minister, would have no moral justification to stay in office.

August 28, 2014

Prime Minister Nawaz Sharif on Wednesday held a series of meetings with heads of Parliamentary leaders and discussed with them the prevailing political situation in the country. The Prime Minister in his meetings here in his Chamber at the Parliament apprised them about the policy of the government and said he firmly believed in supremacy of Constitution, the Parliament and rule of law.

The Parliamentary Leaders from the Opposition who met the Prime Minister included Maulana Fazalur Rehman, Syed Khursheed Shah, Farooq Sattar, Aftab Sherpao, Haider Abbas Rizvi, Mahmood Khan Achakzai, Haji Bilour and Akram Durrani. The Prime Minister also held a separate meeting with a delegation of MQM, which was also attended by Minister for Finance Ishaque Dar and Minister for Defence Khawaja Asif, Minister for Information Pervaiz Rashid. The Prime Minister also had a meeting with the PML N parliamentary leader in Balochistan Assembly Sanaullah Zehri.

August 28, 2014

Former Prime Minister Syed Yousuf Raza Gilani Wednesday pointed out that Prime Minister Nawaz Sharif did not utter a single word in his National Assembly speech on the Model Town

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PLP NEWS ALERTS EMAIL No. 196-2014 tragedy. In an interview with a private TV channel by phone, the former premier said that Nawaz Sharif played a dirty game against him in the Parliament. "I wish that Nawaz Sharif would have respected the supremacy of the Parliament when I was disqualified," Gilani said.

To a question, he said the prime minister wasted too much time to resolve this crisis. "We have always supported democracy, law and constitution," he stated. About the prime minister's speech, Gilani was of the view that Nawaz Sharif should not undermine state institutions. He said he had not wasted even a single second and stepped down after the Supreme Court's ruling. Chief Minister Shahbaz Sharif should have resigned after the Model Town incident, he added.

August 28, 2014

Finance Minister Ishaq Dar on Wednesday said the proposal of Senator Jaffar Iqbal for creating the post of deputy prime minister does not reflect the policy of Pakistan Muslim League-N. The Finance Minister in a statement termed the suggestion by Senator Iqbal a personal view. Senator Jaffar Iqbal, a senior leader of PML-N, had suggested that a post of deputy prime minister be created and offered to Pakistan Tehreek-e-Insaf with a view to resolving the current political impasse.

August 28, 2014

KHUDAYAR MOHLA

The Supreme Court on Wednesday granted one day to Pakistan Awami Tehreek (PAT) and Pakistan Tehreek-e-Insaf (PTI) to ensure free movement of traffic by clearing one lane of multi- lane Constitution Avenue by Thursday (today). A five-member bench of Chief Justice Nasirul Mulk resumed the hearing of identical petitions filed by Supreme Court Bar Association (SCBA), all the provincial High Court Bar Associations and Islamabad District Bar Association against sit-ins on Constitution Avenue.

During the course of proceedings, the bench issued directives to the Registrar, Attorney General for Pakistan (AGP), counsel for PAT and PTI and petitioners to visit the sit-ins at Constitution Avenue and submit a report over free movement of traffic on single lane of the thoroughfare. The Chief Justice observed that PAT and PTI counsel had claimed that one lane of the Avenue had been cleared but in reality the situation was quite different.

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PLP NEWS ALERTS EMAIL No. 196-2014

The Chief Justice further said there were still obstructions on the Avenue, saying the lawyers, litigants and court staff were being frisked by PAT workers deployed on the road. Responding to a query of the Chief Justice, the PAT counsel, Barrister Ali Zafar, said that party workers became emotional and went out of control in response to the profundity of eloquence of their spiritual leader Dr Tahirul Qadri.

Justice Asif Saeed Khosa observed that the court considered Constitution as well as protection of democracy more important than Constitution Avenue. Justice Khosa further revealed that the main objective of the court was to safeguard Constitution and cited the court had earlier ordered the national institutions that they must show restrain from taking any extra-constitutional measure to address the prevailing sit-ins.

In response to apprehensions of petitioners about clamping martial law in the country, Justice Khosa remarked that in the past four attempts were made by an 'orthopaedic' surgeon for a neurosurgery procedure, adding that they must not be allowed to make fifth attempt to do so. Opposing any unconstitutional step, Hamid Khan, the counsel for PTI, assured the bench that his client would not support any extra-constitutional move in the country.

Khan requested the court to exercise its suo motu power to address the concerns of protesters of sit-ins, however, the bench turned down his plea, saying if anybody intended to get remedy he should file a petition. Justice Mian Saqib Nisar asked PAT and PTI counsels to make their efforts towards saving the Constitution of Pakistan. Expressing his concern over the ongoing sit-ins on Constitution Avenue, Justice Anwar Zaheer Jamali remarked that if a sit-in of 50,000 people succeeds, "next time, 200,000 people may be in a position to topple a government." In response to the contentions of both the parties' counsel about the hardships of people due to placement of containers across the twin cities, Justice Jawwad S Khawaja said that the government had blocked roads due to security concerns. Later, the hearing of this matter was adjourned till Thursday (today).

August 28, 2014

Extending his pressing deadline for making some highly important announcements by 24 hours, Pakistan Tehreek-e-Insaf (PTI) chairman on Wednesday claimed he was offered the slot of deputy prime minister that he turned down. "I've extended my sit-in deadline for another 24 hours. Whatever I'll announce it will within the purview of law and constitution but it will come as a lightening bolt for Nawaz Sharif," PTI chief issued his warning after the 4th and final round of talks failed to secure any breakthrough.

Addressing Prime Minister Nawaz Sharif, he said: "I shall wait for you by 6pm today [Thursday] and I'll not leave with without getting your resignation as in your presence there is no hope of accountability and fairplay." Earlier, speaking to his anti-government sit-in which entered 13th

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PLP NEWS ALERTS EMAIL No. 196-2014 day on Wednesday, Imran ridiculed Prime Minister Nawaz Sharif's claim of accepting all his demands except his resignation.

The PTI leader once again attacked former chief justice Iftikhar Muhammad Chaudhary, the then caretaker chief minister Punjab Najam Sethi and the Fakhruddin G; Ebrahim-led Election Commission in connivance with 'Gullu Butts' of Nawaz League for their alleged involvement in pre-poll rigging last year. He said the government has increased power tariff despite a never- ending power crisis. He said that Pakistan never see the dawn of democracy after the death of the founder of the nation Quaid-e-Azam Muhammad Ali Jinnah, saying everybody who came to power under the guise of democracy wanted to become a dictator.

"Dictators wanted to become democrats while those who had carried the so-called democracy turned out to be worst authoritarians and Nawaz Sharif is the glaring example who has been ruling the country like a monarch," he lamented. Imran hit out at all the Muslim countries across the world, saying except two-three Islamic countries, all 'enjoy' the fruits of dictatorship in the name of democracy.

Imran said the reason behind the backwardness of the country is that there is no meritocracy which has led to a massive brain-drain. "The PTI government will ensure the establishment of a system based on meritocracy and justice in the country. The salaries of judges will be increased," he maintained. He praised India's electoral system, which has boosted the confidence of Non- Resident Indians (NRIs) to invest in their own country. He said expatriate Indians have a major role in the development of India, adding when 'New Pakistan' will emerge, overseas Pakistanis will make more contributions in country's economy.

August 28, 2014

Pakistan Tehreek-e-Insaf's (PTI) 28 members of the Punjab Assembly submitted resignations to the Secretary Punjab Assembly here on Wednesday, in line with the decision taken by the PTI leadership. Leader of Opposition in Punjab Assembly Mian Mahmoodur Rasheed submitted resignations to Secretary Punjab Assembly Rai Mumtaz Babar. However, the party leadership did not receive resignation from its two MPAs, Nighat Inqiar and Jahanzaib Kich.

The Secretary Punjab Assembly told the media that Punjab Assembly Speaker Rana Iqbal is on away for 2 days and that resignations would be handed over to him upon his return. Later, addressing a press conference, Opposition Leader Mian Mahmoodur Rasheed said they cannot participate in the assemblies that are based on rigged elections. "The federal and provincial governments had failed to deliver on their promises and PTI MPAs from Punjab are resigning as per party policy," he added. He told the media persons that of the total 30 PTI parliamentarians in Punjab Assembly, 28 have submitted their resignations, and they are in connect with the remaining two MPAs to obtain their resignations.

Rasheed maintained that during negotiations with the government, Imran Khan has shown

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PLP NEWS ALERTS EMAIL No. 196-2014 "maximum" flexibility, but the government's rigidity has led to a serious deadlock. "If any unconstitutional steps are taken then the government will be responsible for it," he added.

August 28, 2014

In a high-level meeting on Wednesday, the Election Commission of Pakistan (ECP), rejected rigging allegations levelled by Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan and Afzal Khan, ex-additional secretary ECP. The meeting, which was chaired by Acting Chief Commissioner Justice Anwar Zaheer Jamali, reviewed the statements submitted by the Provincial Commissioner Punjab who denied printing of extra ballot papers during 2013 general elections at private printing presses in Lahore's Urdu Bazaar.

Provincial Election Commissioner, Punjab, Mahboob Anwar, rebutted the charges levelled against him by Imran Khan. In a statement, he said that in May, 2013 general elections, for the province of the Punjab, 10,72,23,600 ballot papers the Commission got printed from PCP presses in Islamabad, Lahore and Karachi as well as Pakistan Security Printing Corporation, Karachi and the same were provided directly to the returning officers by the concerned presses under proper delivery receipts, record of which is available with the respective presses.

The commission further reviewed the PTI questions about the law under which the then Chief Justice Iftikhar Chaudhry purportedly addressed the Returning Officers in Lahore. The commission also reviewed the statement submitted by Election Commission member former Justice Riaz Kayani who stated that he was blamed for destroying 90 percent of elections and urged that this was a general allegation and it should have been specified whether he had committed any wrong in the polls.

On Monday, Afzal Khan former additional secretary ECP, made startling revelations about rigging in 2013 elections and alleged that Justice Riaz Kayani and the then Chief Justice Ifthikhar Chaudhry, were responsible for rigging in the elections. Khan opened a Pandora's Box by boldly claiming that people's mandate was stolen in the 2013 elections, adding that Riaz Kayani was the principal character behind rigging.

August 28, 2014

Governor Punjab Chaudhry Muhammad Sarwar spent a very busy day in Karachi where he met leading politicians of different parties. He also met Senator Mian Raza Rabbani at the latter's residence. Governor Sarwar discussed ways of dissolving current political impasse. The meeting lasted for one hour. Later, he met Sindh Governor Dr Ishrat Ul Ebad Khan and discussed with

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PLP NEWS ALERTS EMAIL No. 196-2014 him the available options pertaining to an amicable solution.

They vowed that the current political disputes would be resolved diligently with the assistance of political forces. Both the Governors informed Prime Minister about their daylong engagements aimed at seeking a resolution of current grave turmoil in the country. Later, Governor Sarwar had then left for Islamabad.

August 28, 2014

The rupee minimised losses against the dollar on Wednesday following the measure taken by the State Bank of Pakistan to bring the national currency at previous level, dealers said on the money market. In fact, the rupee struggled hard to come out of bottom but the dollar, some how managed to show its muscles on the back of rupee's weakness, they said.

It is interesting to note that how the rupee reacts to the developments on the political front?

INTERBANK MARKET RATES: The rupee maintained rise against the dollar picking up 20- paisa for buying at Rs 102.20 and it also rose by 15-paisa for selling at Rs 102.30, they said.

OPEN MARKET RATES: The rupee, however, lost 40-paisa in relation to the dollar for buying and selling at Rs 101.70 and Rs 101.90 respectively. It sustained its value in terms of the euro for buying and selling at Rs 133.50 and Rs 133.75, they said.

In the third Asian trade, the dollar hit a 13-month peak against a basket of major currencies, with the euro still struggling amid expectations of further policy easing from the European Central Bank. The dollar index rose as far as 82.727 at one point, its highest level since July 2013. It was last steady on the day at 82.648. The dollar was trading against the Indian rupee at Rs 60.47, the greenback was at 3.1515 versus the Malaysian ringgit and the US currency was at 6.147 in terms of the Chinese yuan. Interbank buy/sell rates for the taka against the dollar on Wednesday: 77.40-77.41 (previous 77.40-77.41). Call Money Rates: 05.50-06.75 percent (previous 05.50- 06.75 percent).

======Open Bid Rs 101.70 Open Offer Rs.101.90 ======Interbank Closing Rates: Interbank Closing Rates For Dollar on Wednesday. ======Bid Rate Rs.102.20 Offer Rate Rs.102.30 ======RUPEE IN LAHORE: The Pak rupee continued to regain some of its earlier loss and was improved by 95- paisa in relation to the greenback on the local currency market on Wednesday.

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PLP NEWS ALERTS EMAIL No. 196-2014 According to the currency dealers, the dollar was opened on a depressed note and remained under selling pressure throughout the day. At close of trading, the dollar was ended further lower to Rs 101.25 and Rs 101.50 as its buying and selling rates against Rs 102.20 and Rs 102.45, respectively.

Similarly, the rupee showed strength and recovered some of its earlier loss against the British pound. The pound's buying and selling rates were slide down from overnight closing of Rs 168.75 and Rs 169.00 to Rs 166.25 and Rs 166.50, respectively, the dealers said.

RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee-dollar parity remained unchanged on the open currency markets of Islamabad and Rawalpindi here on Monday.

The dollar opened at Rs 102.00 (buying) and Rs 102.10 (selling) against last rate. It did not observe further change in the second session and closed at Rs 102.00 (buying) and Rs 102.10 (selling).

Pound Sterling opened at Rs 168 (buying) and Rs 168.10 (selling) against same overnight value. It did not observe further change in the evening session and closed at Rs 168 (buying) and Rs 168.10 (selling).

August 28, 2014

India's top court said Wednesday lawmakers with criminal backgrounds should not serve in government, with 13 ministers in the current administration facing charges for attempted murder, rioting and other offences. The ruling shines a spotlight on Narendra Modi and his cabinet after the right-wing prime minister swept to power this year pledging clean governance.

The Supreme Court ruled Modi should be left to choose his cabinet at his discretion, but said it hoped the premier would take into account public expectations and India's democratic values. "We leave it to the wisdom of the prime minister to see whether people with criminal backgrounds are appointed as ministers," Justice Dipak Misra told the court.

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PLP NEWS ALERTS EMAIL No. 196-2014 MoU for mass transit train signed: Zardari attends Beijing moot

August 28, 2014

Former President Asif Ali Zardari and Pakistan People's Party Chairman Bilawal Bhutto Zardari attended the Sindh Business Conference in Beijing on Wednesday. Prominent investment companies and groups attended the conference. Speaking on the occasion, former President Asif Ali Zardari invited investors to invest in economic projects of mutual advantage in Pakistan. Sindh chief minister, Syed Qaim Ali Shah, also addressed the conference.

Prior to beginning of the moot, three memorandum of understanding (MoUs) were signed between Sindh government and Chinese transports groups. One of the three MoUs was signed for mass transit train in Karachi and other two related to transport in Karachi and Sindh.

August 28, 2014

The US labelled a Lahore money changer a "global terrorist" Wednesday, saying he provided financial services to militant group Lashkar-e-Taiba, blamed for the deadly 2008 attacks in Mumbai. The US Treasury said Muhammad Iqbal, who owns and runs the Asma Money Exchangers in Lahore, conducts financial transactions on behalf of Lashkar-e-Taiba and its affiliates.

It said he is a founding member and finance secretary of the charity Falah-i-Insaniat Foundation, which the US named as a front for Lashkar-e-Taiba in 2010. In this role and as owners of Asma Money Exchangers, Iqbal solicited donations for and sent money to officials of Lashkar-e-Taiba, it said. "As a result of today's action, all property and interests in the United States or in the possession or control of US persons in which Iqbal and Asma Money Exchangers have an interest are blocked, and US persons are prohibited from engaging in transactions with them," the Treasury said.

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PLP NEWS ALERTS EMAIL No. 196-2014 UK police arrest man in Imran Farooq case

August 28, 2014

British police on Wednesday arrested a 30-year-old man in connection with the 2010 murder of Dr Imran Farooq in London. The suspect was released on bail after being questioned by Scotland Yard, but must return to the central London police station in mid-November. Police also searched a property in east London, according to a statement.

A 52-year-old man was arrested at Heathrow Airport in June 2013 on suspicion of conspiracy to murder, after landing on a flight from Canada, and remains on bail. Detectives are looking for 29-year-old Moshin Ali Syed, who was in Britain from February to September 2010. They also want to speak to Muhammad Kashif Khan Kamran, 34, who was in Britain in September 2010, and have released CCTV footage of the two men.

August 28, 2014

Chief of Army Staff (CoAS) General Raheel Sharif on Wednesday visited Corps Headquarters Karachi. He was given a detailed briefing on operational, training and administrative matters of the Karachi Corps. He was also briefed about overall law and order and security situation in Karachi, said an ISPR press release issued here. Earlier on arrival at Karachi, the CoAS was received by Lieutenant General Sajjad Ghani, Corps Commander Karachi.

Later, the CoAS visited Headquarters Airports Security Force (ASF). Speaking to the troops of the ASF, the CoAS commended their professionalism, commitment and acknowledged their valour in averting a terrorists attack at Karachi airport in May this year.

The CoAS met the families of ASF shuhada and appreciated their sacrifices. The CoAS emphasised the need for more harmony and co-ordination among all security forces and intelligence agencies for an integrated response towards defeating terrorists' threat. He also pledged the Army's fullest support in enhancing the ASF's capacity, and anti terrorists training of the troops, as being provided to Police forces across the country.

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PLP NEWS ALERTS EMAIL No. 196-2014 Pakistan, India hold first flag meeting after border firing

August 28, 2014

Pakistan and India on Wednesday held a flag meeting for the first time since multiple cease-fire violations in the last couple of weeks which ratcheted tensions along the border. The meeting was held between the Border Security Force (BSF) and Pakistan Rangers at the Pargwal area in Jammu of Indian-held Kashmir near the international border. The agenda of the meeting, which reportedly took place on the request of the Rangers, is not clear though.

Wednesday's meeting comes just a day after the Director General of Military Operations (DGMOs) of both the countries talked on hotline and agreed to discuss steps to restore calm. Tension between Pakistan and India has escalated over last few weeks due to repeated cease-fire violations by Indian BSF and New Delhi calling off talks in Islamabad after Pakistan's High Commissioner in India met Kashmiri separatist leaders before the Foreign Secretaries of the two countries were to hold a meeting. Last month, Indian Prime Minister Narendra Modi visited Indian-occupied Kashmir and accused Pakistan of using militants to conduct "a proxy war" against India. Pakistan denounced the charges as "baseless" and said India should steer clear of "a blame game".

August 28, 2014

Turkey's ruling party on Thursday confirmed Foreign Minister Ahmet Davutoglu as the successor to Recep Tayyip Erdogan as premier and party leader, with both men vowing the handover would herald no change in strategy. Erdogan, 60, is to be sworn in as president on Thursday and the approval of Davutoglu, 55, from the ruling Justice and Development Party (AKP) was a key step in a tightly-choreographed succession process.

Analysts expect the changeover at the top will not change Erdogan's status as Turkey's undisputed number one, and both men emphasised that a strict continuity would be maintained. Yet Erdogan rejected suggestions that Davutoglu would simply be a puppet premier, and said the AKP would never be a "one man" party. In a purely ceremonial vote at a congress a day before Erdogan takes office as president, the AKP overwhelmingly approved Davutoglu, who was the only candidate standing after being nominated by the party executive committee.

Davutoglu and his wife Sare - a practising gynaecologist - then threw red flowers at the thousands of party supporters gathered in the Ankara sports arena. Erdogan - who has ruled Turkey as premier for over a decade with Islamic-tinted and development-focused policies - will

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PLP NEWS ALERTS EMAIL No. 196-2014 be sworn in as president at 1100 GMT on Thursday after his victory in the August 10 election.

He will take over from Abdullah Gul, a former close comrade and co-founder of the AKP who appears now to have fallen out with the feisty Erdogan and was barely mentioned at the congress. In a marathon two-hour speech, Erdogan said the government's strategy would not change with the handover and said the party had "always excluded personal ambitions and arrogance". "Names have no importance. Names change today but our essence, our mission, our spirits, our goals and ideals remain in place."

August 28, 2014

IMF chief Christine Lagarde has been put under formal investigation by French magistrates for alleged negligence in a political fraud affair dating from 2008 when she was finance minister. Lagarde was questioned by magistrates in Paris this week for a fourth time under her existing status as a witness in the long-running saga over allegations that tycoon Bernard Tapie won a large arbitration payout due to his political connections.

"After three years of procedure, the sole surviving allegation is that through inadvertence or inattention I may have failed to intervene to block the arbitration that brought to an end the longstanding Tapie litigation," she said in a statement on Wednesday. "I have instructed my lawyer to appeal this decision, which is without merit."

Under French law, magistrates place a person under formal investigation when they believe there are indications of wrongdoing, but that does not always lead to a trial. Lagarde's lawyer, Yves Repiquet, told Reuters he would personally appeal the magistrates' decision. That means Lagarde would not have to return to Paris in the meantime, allowing her to continue her duties as managing director of the International Monetary Fund uninterrupted.

"She is now on her way back to Washington and will, of course, brief the (IMF) board as soon as possible," IMF spokesman Gerry Rice said. "Until then, we have no further comment." The inquiry relates to allegations that Tapie, a supporter of conservative former President Nicolas Sarkozy, was improperly awarded 403 million euros ($531 million) in an arbitration to settle a dispute with now defunct state-owned bank Credit Lyonnais.

The inquiry has already embroiled several of Sarkozy's cabinet members and France Telecom's chief executive, Stephane Richard, who was an aide to Lagarde when she was Sarkozy's finance minister. In previous rounds of questioning, Lagarde has not recognised as her own the pre- printed signature to sign off on a document facilitating the payment, Repiquet told Reuters by telephone. However, Richard has stated that Lagarde was fully briefed on the matter.

The offence of negligence by a person charged with public responsibility in France carries a maximum penalty of one year's imprisonment and a 15,000-euro fine. Lagarde was a star in

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PLP NEWS ALERTS EMAIL No. 196-2014 Sarkozy's cabinet and well respected by peers, pushing through many of the high-profile initiatives in France's presidency of the Group of 20 nations.

She has been managing director of the IMF since 2011 after her predecessor at the global lender, Frenchman Dominique Strauss-Kahn, resigned over sexual assault charges that were later dropped. The IMF's board discussed the possible consequences of the Tapie case before deciding to select Lagarde, the board said at the time. It has continued to support her through various stages of the case.

The IMF is traditionally headed by a European, and five of the last eight managing directors have been French. But the BRICS group of large emerging markets - Brazil, Russia, India, China and South Africa - protested the tradition during the last selection process in 2011, saying that continued European dominance could undermine the IMF's legitimacy. Lagarde competed for her post against Mexican central bank Governor Agustin Carstens.

The IMF's No 2 official, David Lipton, an American, would likely take over as acting managing director if Lagarde were not able to perform her duties. Tapie, a colourful and often controversial character in the French business and sports world, sued the state for compensation after selling his stake in sports company Adidas to Credit Lyonnais in 1993.

He claimed the bank had defrauded him after it later resold his stake for a much higher sum. Credit Lyonnais, now part of Credit Agricole, has denied wrongdoing. Investigators are trying to determine whether Tapie's political connections played a role in the government's decision to resort to arbitration that won him a huge pay-out. He has denied any wrongdoing.

August 28, 2014

Israel closed off the area around Quneitra on the occupied Golan Heights on Wednesday after an officer was wounded by stray fire as Syrian rebels seized control of the crossing. Rebel fighters, including some from al Qaeda affiliate Al-Nusra Front, captured the Syrian side of the sole crossing over the armistice line earlier Wednesday in deadly fighting with government troops.

"From what we know, opposition forces overran the Syrian regime forces on the Syrian side of the Quneitra crossing, some of those including the Al-Nusra Front, which ultimately leave the crossing in the opposition forces' hands," Lieutenant Colonel Peter Lerner told AFP.

He said there had been "extensive fighting" on the Syrian side of the cease-fire line since early Wednesday which had resulted in several instances of "errant fire." Three mortar rounds had struck the Israeli-occupied side of the plateau as well as gunfire which moderately wounded an officer, he said. An army spokeswoman had earlier said six mortar rounds struck the area. In June 2013, there was a similar take-over of the crossing by rebel forces, but the Syrian army managed to regain control.

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PLP NEWS ALERTS EMAIL No. 196-2014

Lerner said the army had "substantial forces" on the ground and was prepared for any eventuality, with troops sealing off the area as a defensive measure. "We have declared a closed military zone in the immediate area of the crossing and the roads leading to it. We are prepared for any potential spillover effect into Israel," he said.

"The opposition forces including the Al-Nusra Front have been on the border area for some time now, but this is not necessarily an increased threat (to Israel)," he said. "These forces have said multiple times that when they are done with Syria, they will head to Israel. Their hands are tied up in Syria at the moment, so we have to be prepared for that development."

Earlier the army said it had responded by hitting two Syrian army posts. As a result of the fighting on the Syrian-controlled side of the plateau, the level of alert was raised on the Israeli side, a spokeswoman said, without confirming that it had been increased to the highest level. On Sunday, at least five rockets hit the Israeli-occupied side of the plateau, all of which were due to stray fire, the army said. In June, an Israeli teenager was killed in a deliberate cross-border attack, which prompted Israeli warplanes to attack Syrian military headquarters and positions.

August 28, 2014

Afghan presidential candidate Abdullah Abdullah will reject the results of a UN-supervised audit of the election, his spokesman said Wednesday, tipping the country deeper into crisis just a week before the scheduled inauguration. Fears grew of a violent backlash against the eventual result after Abdullah withdrew his observers from the audit earlier Wednesday in the latest twist of a dispute over allegations of massive fraud in the June 14 election.

August 28, 2014

Equities continued to fall across-the-board weighed by prevailing grave political crisis. The benchmark KSE-100 index lost another 432 points Wednesday to close below 27,000 points level. On Tuesday, the KSE-100 index closed at 27,811 points compared to 28,244 points Tuesday. Overall, during the last three days, Karachi stock market has declined by 3.7 percent due to ongoing political crisis.

"Margin selling coupled with different rumours about the political set-up once again affected the share market, which fell by 1.53 percent," said Samar Iqbal, an analyst at Topline. She said

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PLP NEWS ALERTS EMAIL No. 196-2014 volumes increased to 132 million shares and the value to Rs 6.8 billion against Rs 4.6 billion in previous session. Lucky Cement closed at lower limit of 5 percent on Tuesday amid institutional selling, while Pakistan Petroleum Limited announced June quarter result as per the expectations, she added.

During the intra-day trading, the market fluctuated in red and green zones and touched 28,308 points highest and 27,585 points lowest level. Despite negative trend, volume at the ready counter surged to 132 million shares compared to 76 million shares in previous session. Ahsan Mehanti of Arif Habib said stocks fell across-the-board amid political deadlock in the ongoing demands for PM resignation and dissolution of assemblies and Army warnings to government to settle protracted protests.

Fall in banking spreads to 5.95 percent in July-14, Rs 700 billion estimated loss on political crises, investors concerns on the deadline given by PAT and reluctance from foreign investors despite record bullish global stocks played a catalytic role in the bearish activity at KSE despite Supreme Court ruling on refund of GIDC, terming it unconstitutional since Dec-11, he added.

Market capitalisation decreased by Rs 81 billion to Rs 6.536 trillion against previous Rs 6.617 trillion. Trading took place in 345 companies, of which 79 closed in green zone, 246 in red, while 20 remained unchanged. Among top 10 volume leaders, only one recorded a positive trend, while 9 closed lower. TRG Pak Ltd emerged the volume leader with 8.19 million shares, gaining Re 0.16 to close at Rs 10.06. Pak Elektron Ltd stood second, down Rs 1.18 to close at Rs 28.36 on 7.7 million shares. Maple Leaf Cement closed at Rs 25.54, down Re 0.95, on 7.6 million shares.

B.O.Punjab lost Re 0.04 to Rs 7.91 on 6.8 million shares. With 6.2 million shares, K-Electric Ltd closed at Rs 6.74, down Re 0.21. Sui South Gas declined by Rs 1.36 to close at Rs 26.01 on 5.6 million shares. Pak Petroleum lost Rs 2.19 to Rs 219.60 on 4.7 million shares. With a trading volume of 4 million shares, Lafarge Pak shed Re 0.05 to close at Rs 15.02. Faysal Bank fell by Re 0.95 to Rs 14.53 on 4 million shares and Fauji Cement lost Re 0.16 to Rs 18.28 on 3.6 million shares.

Nestle Pak and Murree Brewery were the top gainers with Rs 100.00 and Rs 45.97 to close at Rs 7,500.00 and Rs 974.30, respectively. Wyeth Pak Ltd and Rafhan Maize SPOT were the top losers with Rs 164.27 and Rs 92.50 to close at Rs 3,200.11 and Rs 10,700.00, respectively.

August 28, 2014

Equities on Wednesday extended further declines amid marginally improved trading turnover on the Lahore Stock Exchange. The LSE-25 index lost 20.49 points to close 4927.86 against 4948.35 of Tuesday while transaction volume was increased to 953,840 shares compared with day earlier volume of 932,700 shares. The market was opened on a negative note and remained under selling pressure throughout the day.

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PLP NEWS ALERTS EMAIL No. 196-2014 The oil sector led the equities downward that dragged the Mari Petroleum, PSO, OGDC, Hascol Petroleum and PPL into negative column. Similarly, Honda Atlas Cars, Nishat Mills, Engro Corporation, Engro Fertilizer, Engro Foods, Faysal Bank, and Fauji Cement also suffered losses. However, Thal Limited, Pakistan Oil Fields, Silk Bank, Askari Bank and Engro Polymer & Chemicals were ended with gains.

The losers were more than the gainers, as out of a total of 78 active issues, 6 companies posted gains, 31 registered declines while 41 companies remained unchanged at their previous closing. Thal Limited gained Rs 4.85, Pakistan Oil Fields was improved by Rs 1.05 while Silk Bank and Askari Bank were up by 13-paisa and 05-paisa, respectively.

In the minus column, Mari Petroleum lost Rs 11.21, PSO was declined by Rs 7.11, OGDC shed Rs 5.11 while Honda Atlas Cars, Hascol Petroleum and PPL were down by Rs 3.95, Rs 2.69 and Rs 2.25, respectively. The Bank of Punjab with trading of 279,000 shares topped the volume leaders followed by Faysal Bank with 157,500 shares.

August 28, 2014

Bears retuned in the driving seat at the Islamabad Stock Exchange (ISE) on Wednesday, where losers outclassed gainers amid decrease in index. ISE Ten Index showed a decrease of 39.05 points as the ISE Ten Index moved from 4,407.70 to 4,368.65 points. The overall turnover amounted to 32,100 shares as compared to previous volume of 48,200 shares.

Total 133 companies participated in buying and selling activity. Majority of stocks (106) closed in negative territory, 27 closed in positive territory, whereas no company remained pegged to its overnight levels. The volume of National Bank of Pakistan was 14,000 shares. The volume of Fauji Cement Company Ltd was 10,000 shares. The volume of Pakistan Petroleum Ltd was 4,300 shares.

August 28, 2014

On Wednesday, BRIndex30 opened at 15,236.15 points. It touched an intraday high of 15,258.06 points and an intraday low of 14,695.71 points and closed at 14,855.97 points which was -380.18 points or -2.5 percent lower than previous close. Total volume was 84,005,100, which was 63.49 percent of KSE All share volume and 88.61 percent of KSE 100 volume. The KSE All Share volume was 132,312,500 and KSE 100 volume was 94,802,510.

BR Commercial Banks Index closed at 6,648.43 points with a net negative change of -94.45

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PLP NEWS ALERTS EMAIL No. 196-2014 points or a percentage change of -1.4 and a total turnover of 25,783,200 shares. BR Cement Index closed at 2,888.34 points with a net negative change of -87.56 points or a percentage change of -2.94 and a total turnover of 24,116,900 shares.

BR Oil and Gas Index closed at 3,913.06 points with a net negative change of -39.76 points or a percentage change of -1.01 and a total turnover of 14,463,500 shares. BR Tech & Comm Index closed at 859.92 points with a net negative change of -8.45 points or a percentage change of - 0.97 and a total turnover of 14,033,300 shares. BR Power Generation and Distribution Index closed at 4,306.72 points with a net negative change of -69.89 points or a percentage change of - 1.6 and a total turnover of 10,298,000 shares.

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PLP NEWS ALERTS EMAIL No. 196-2014 Business and Economy: Pakistan China wants to enhance investment in energy, health, infrastructure sectors: Sino- Pak JCC meeting held in Beijing

August 28, 2014

The third meeting of the China-Pakistan Joint Co-ordination Committee (JCC) was held here on Wednesday. The meeting discussed measures, ways and means to enhance and gear up development projects initiated by China and Pakistan. On the occasion, the Chinese officials announced that Chinese President Xi Jinping will conduct an official visit to Pakistan by the mid of the next month.

Among others, Federal Minister for Planning and Development Ahsan Iqbal, Punjab Chief Minister Shahbaz Sharif and Balochistan Chief Minister Dr Abdul Malik also attended the meeting. Punjab Chief Minister Shahbaz Sharif has held meetings with senior Chinese officials and chief executive officers of various investment companies aiming at attracting more Chinese investment in Pakistan.

Later he said that the China has agreed to further enhance its investment in the fields of energy, health and projects related to infrastructure development. Shahbaz Sharif said that it will be our utmost endeavour to ensure pace of work on the trade corridor according to the required speed to complete it within given time frame.

August 28, 2014

German Association of Trade and Economy-Pakistan (GATE-Pakistan) has been launched in a ceremony held at German Foreign Office here in Berlin on Wednesday. It is an Economic Forum established with the support of German Foreign Office and the Board of Investment, Government of Pakistan for providing extensive knowledge and key local contacts in Pakistan to German investors with special focus on medium and small enterprises for establishing their Business Houses and Manufacturing Units in Pakistan.

The declaration of establishment of GATE-Pakistan was signed by Syed Hassan Javed, Pakistan's Ambassador to Germany on behalf of Government of Pakistan and Dr Crill Nunn on behalf of German government and Dr Pantelis Christian Poetis, Honorary Consul for Pakistan, State of Bavaria as its first head. Germany's Special Envoy for Afghanistan-Pakistan, Dr Michael Koch, senior officials of the German Foreign Office and representatives of German business

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PLP NEWS ALERTS EMAIL No. 196-2014 community were also present on this occasion. Speaking on this occasion, Dr Koch said that GATE-Pakistan was a business-driven initiative and has nothing to do with politics.

German Ambassador to Pakistan, Dr Crill Nunn said that though it was a concrete step and would open a new vista of business information and technology sharing for the greater benefit of both the countries. He said that the new forum would complement the existing institutions and lead towards closer co-operation in the Economic and Technology sectors.

Pakistan's Ambassador to Germany Syed Hassan Javed said that Pakistan's location provided it with land route access to nearly half of world population in its neighbourhood in China, India, Central Asia and West Asia.

Dr Poetis explained objectives and aims of this newly established Economic Forum. He said, GATE-Pakistan is a platform for German business in the Islamic Republic of Pakistan. It will provide direct access to Pakistan's economy, officialdom and scientific community to the German investors and businessmen. He also made a presentation on Pakistan and said Pakistan is an ideal geo-strategically located country and offers tremendous growth potential particularly in the areas of energy, infrastructure, transportation, commerce, telecommunication, educations and agriculture.-PR

August 28, 2014

Sun Weidong, Chinese Ambassador to Pakistan, called on Finance Minister Ishaq Dar here on Wednesday and discussed economic co-operation between two countries and forthcoming visit of the Chinese President to Pakistan. The Ambassador, while expressing his gratitude on expanding economic co-operation between the two countries, said: "We are happy to see the Pakistan-China Economic Corridor moving ahead smoothly."

He mentioned that currently the third round of Pakistan-China Joint Co-operation Committee (JCC) meeting is going on successfully and mega projects in energy and infrastructure sectors with the help of the Chinese Government will bring development and economic progress in Pakistan. He said China as a friend will continue to take this relationship to a new height.

He appreciated Pakistan's support for the Asia Infrastructure Development Bank and observed that Pakistan was one of its founding members. He underlined that forthcoming visit of the Chinese President to Pakistan next month will open new avenues for co-operation between the two countries. He noted that China will be assisting Pakistan in 14 energy projects and four mega infrastructure projects, including Karakorum Highway Phase-II, development of Gwadar Port, Lahore-Karachi Motorway and Orange Line Metro Project in Lahore.

He congratulated the political leadership of Pakistan for the economic successes achieved during the past fiscal year and observed that Pakistan's economy got momentum due to hard work by

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PLP NEWS ALERTS EMAIL No. 196-2014 the government to overcome challenges. He said that China has no agenda other than co- operation in development and economic progress of Pakistan. He concluded that our traditional friendship was close to the hearts of the Chinese leadership and the economic corridor will provide us a framework to bring substantial co-operation on the ground.

The Finance Minister said China has always been great friend of Pakistan and it was an all weather relationship. He mentioned about the strong co-operation and common stand in international forums by the two countries and appreciated unprecedented support by China.

He underlined that the political leadership of both the countries have a common vision and talk of the robust economic co-operation, reducing differences between the two countries and regional connectivity. He said that credit goes to the leadership of both the countries on convergence of their thinking. The Finance Minister said the government was looking forward to expand our relationship to a new height and replace traditional diplomacy with the economic diplomacy. He said the economic corridor will reduce transportation cost between Pakistan and China and enhance trade and investment in the region.

Ishaq Dar said energy and infrastructure projects with the help of the Chinese Government will contribute to economic progress of Pakistan and it was recognised by the people in Pakistan. He hoped that projects in the pipeline will be completed on time. The Finance Minister informed the Chinese Ambassador that the political leadership in Pakistan is looking forward to welcome the Chinese President's historic visit and hoped the visit will usher in a new era of progress and development of the two countries. The meeting was also attended by Saleem Sethi, Secretary Economic Affairs Division, Rana Assad Amin, Advisor to the Finance Ministry, Shahid Mahmood, Additional Finance Secretary/SA to the Finance Minister, and senior officials of the Finance Ministry.

August 28, 2014

The Ministry of Commerce is looking for new high-growth sectors of exports to give a new boost to Pak-Britain trade, said Minister for Commerce Engineer Khurram Dastgir Khan while meeting with Syed Ibn-e-Abbas, Pakistan's High-Commissioner-designate to England who will assume his responsibilities in the first week of September.

The Minister said MoC was promoting the export of high value-added textile products to England while there is a great scope of import of sophisticated services and consultancies from England. Currently, Pakistan's trade with England stands at two billion pounds out of which Pakistan's exports are 1.4 billion pounds suggesting that the balance of trade is clearly in Pakistan's favour. The Minister expressed the government's resolve to enhance bilateral trade up to three billion pounds in the coming years.

England has a huge Pakistani diaspora which is settled there since decades. They are working in

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PLP NEWS ALERTS EMAIL No. 196-2014 every sector and provide huge revenue through the remittances they send back to Pakistan. However, the Minister expressed his concern that the Pakistani companies are not well entrenched in the vast financial markets of Britain. He directed the High Commissioner to engage the Pakistani community settled in Britain and guide them about the latent business and trade opportunities that Britain offers. Abbas said that enhancing Pakistan's trade with Britain would be his top priority and for that end he would keep a constant liaison with the Pakistani community in Britain.-PR

August 28, 2014

The Punjab Government on Wednesday approved 6 development schemes of different development sectors with an estimated cost of Rs 6826.246 million including Establishment of Khawaja Fareed University of Engineering & Information Technology, Rahimyar Khan (Phase- I) at the cost of Rs 3509.421 million, These schemes were approved in the 8th meeting of Provincial Development Working Party of current fiscal year 2014-15 presided over by the Punjab Planning and Development Board Chairman, Muhammad Irfan Elahi.

Provincial Secretary P&D Waseem Ajmal Chaudhry, members of the Planning & Development Board, Provincial Secretaries concerned and other senior representatives of the relevant Provincial Departments also attended the meeting. According to P&D spokesman, the approved development schemes included:

1. Establishment of Khawaja Fareed University of Engineering & Information Technology, Rahimyar Khan (Phase-I) at the cost of Rs 3509.421 million,

2. Establishment of Medical College, at Bahawalnagar at the cost of Rs 1742.678 million,

3. Feasibility Study on Hill Torrents & Flood Mitigation in Mianwali District (PC-II) at the cost of Rs 39.410 million,

4. Feasibility Study for Jand Dam District Attock. (PC-II) at the cost of Rs 51.491 million,

5. Remodelling and Extension of Tayyab Drain, District Rajanpur at the cost of Rs 1446.498 million and

6. Optimising Canal and Groundwater Management to assist Water user Associations in Maximising Crop Production and Managing Stalinization with Australian Assistance (Revised) at the cost of Rs 84.120 million.

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PLP NEWS ALERTS EMAIL No. 196-2014 PIAF-Founders Alliance for revival of economic activities

August 28, 2014

"PIAF-Founders Alliance would play its due role for revival of economic activities through a well consulted strategy as present political instability has caused irreparable loss to the trade and industry. To achieve the required goal, Alliance would make strong liaison with the business community."

These views were expressed by the Alliance leaders Mian Anjum Nisar and Mian Muhammad Ashraf while talking to a delegation of members of Lahore Chamber of Commerce and Industry here on Wednesday. They said economic activities were paralysed due to political rift. They said Alliance believes on practical steps and has taken various initiatives to facilitate the business community through the platform of the LCCI.

They said that Alliance has turned the LCCI into a facilitation centre for the business community in true sense of words. They said that PIAF-Founders Alliance is giving chance to those representatives of business community in the LCCI elections 2014-15 who have all abilities to turn the economy around. They said that politics of sit-ins has caused heavy loss to the trade, industry and national economy and situation demands unity in the rows of business community.

August 28, 2014

The country's economic growth could be possible on sustainable basis only if consumer rights are protected in letter and spirit with emergence of competitive environment in markets of goods and services. This was stated by Punjab Governor Chaudhry Sarwar while speaking as a chief guest at the 9th Consumers Choice Awards organized by the Consumers Association of Pakistan (CAP) at a local hotel on Wednesday.

He said the consumer courts should be established and empowered to protect the rights of consumers in the country whereas companies of different sectors should ensure their rights keeping in mind that these people were their business partners whose contribution were vital in development and growth of their business.

He said the consumer rights protection should be priority of the government because these were people who elected their representatives and ultimately the government, hence, it was prime responsibility of the policymakers to come up with regulation framework to ensure consumers rights in the country.

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PLP NEWS ALERTS EMAIL No. 196-2014

Chaudhry Sarwar said the consumer rights protection was vital to the country to bring investment in the country because it leads to bring competition in different fields of business and benefits to layman in terms of high quality in the products and services against reasonable prices and charges.

The Governor of Punjab added that reputed multinational companies should ensure compliance to consumer rights in their operations and business because they believed that their success lie in the satisfaction of their partners. He said awareness for consumer rights was indispensable through various seminars and conference and the role of CAP was laudable for its continuous and tireless efforts in playing constructive role in the society.

The ceremony concluded with the distribution of awards to different companies having exemplary role in assuring rights of consumers with their goods and services. Rauf Siddiqui, Sindh Minister for Trade and Industries, said multinational and national companies should enhance their level of production and services for fulfilling the needs of consumers amid gratifying experience.

He urged companies to extend their co-operation to consumers association which was the best in the interest of their business and image. Jam Mehtab Hussain Dahar, Sindh Minister for Food, and Kaukab Iqbal, Chairman of Consumers Association of Pakistan, also addressed the participants. Akhtar Farooqui, Administrator of KMC, and Shoaib Siddiqui, Commissioner of Karachi, and others were present on the occasion.

August 28, 2014

The Lahore Chamber of Commerce and Industry (LCCI) and Jakarta Chamber of Commerce and Industry (JCCI) on Wednesday signed a Memorandum of Understanding to promote business activities between Pakistan and Indonesia. According to the LCCI spokesman, the LCCI President Sohail Lashari inked the MoU on behalf of the chamber while Jakarta Chamber of Commerce and Industry was represented by its President IR Eddy Kuntadi. Ambassador to Pakistan Burhan Muhammad and Pakistan Ambassador to Indonesia Attiya Mehmood were also present on the occasion.

According to the MoU, both the chambers would work together for improving trade, commerce and economic relations between the two countries. Both the sides would adopt a new strategy for exchange of information relating to their respective markets. The accord would facilitate the exchange of trade teams between the two chambers. Both the chambers would now work jointly to identify snags affecting trade activities between both countries. Both the chambers would also conduct a joint research for exploring possibilities of trade and investment.

Speaking on the occasion, the LCCI President Sohail Lashari said that this MoU is a significant step in bring the both chambers together. He said that bilateral trade between Pakistan and Indonesia is needed to be enhanced as both countries have potential and resources to make the

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PLP NEWS ALERTS EMAIL No. 196-2014 economic ties strengthen. He said that Pakistan's share in two-way trade is much lesser than that of Indonesia but it is a good omen that the two countries are moving on the right track. Meanwhile, the LCCI Acting President Mian Tariq Misbah hoped that This MoU would go a long way. He said that there is also a lot of scope for Indonesia to make investment in Pakistan.

August 28, 2014

Project Director of Defence Housing Authority (DHA) Brigadier Hammad Aziz has said that 9,000 acres of land had been acquired and this project would help to develop economic activities of around 80 billion rupees in next five years. While briefing the members of Multan Chamber of Commerce and Industry (MCCI), he said that we are developing DHAs in Gujranwala, Bahawalpur and Multan after successful completion of projects in Karachi and Lahore. He said that reputed construction consultants and developers were hired to complete a state of art project in Multan.

He said that a modern disposal system would be introduced which would be run by solar energy system. Foolproof security system, five-star hotel, under ground electronic system, sewage treatment plant, shopping malls, DHA club, and other facilities will be provided in the project. He said that 35 real estate agents were nominated. In his welcome address MCCI President Khawaja Muhammad Usman said that this project would provide a golden chance to secure investment in Multan.

He paid rich tributes to the martyrs who laid down their lives for the cause of motherland during operation Zarb-e-Azb. Colonel Tariq Qasim, Tahir Rehman Naqi, Senior Vice President of MCCI, Sheikh Muhammad Usman President Khanewal Chamber, Mir Yousaf Ali Khan, President of Bahawalpur Chamber, Malik Asrar Ahmed Awan, former President of Multan Chamber, Khawaja Muhammad Azam, Syed Iftikhar Ali Shah, VP, Khurram Javed Secretary General were also present.

August 28, 2014

The Karachi Port handled 80,372 tonnes of cargo comprising 45,206 tonnes of import cargo and 35,166 tonnes of export cargo including 5,181 loaded and empty containers during the last 24 hours ending at 0700 hours on Wednesday. The total import cargo of 45,206 tonnes comprised of 29,391 tonnes of containerised cargo; 7,968 tonnes of general cargo; 6,941 tonnes of bulk cargo: 4,747 tonnes of DAP; 1,128 tonnes of soyabean meal; 1,066 tonnes of palm kernal and 906

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PLP NEWS ALERTS EMAIL No. 196-2014 tonnes of oil/liquid cargo.

The total export cargo of 35,166 tonnes comprised of 28,982 tonnes of containerised cargo; 864 tonnes of cement and 5,320 tonnes of oil/liquid cargo. As many as 5,181 containers comprising 2,500 containers import and 2,681 containers export were handled during the last 24 hours on Wednesday.

The break-up of imported containers shows 573 of 20's and 848 40's loaded while 231 of 20's and nil of 40's empty containers, whereas that of exported containers shows 727 of 20's and 476 of 40's loaded containers while 238 of 20's and 382 of 40's empty containers were handled during the business hours. There were eight ships namely ACX Crystal, Hyundai Vancouver, MOL Dignity, Bon Atlantico, Sichem Defince, Chang Hang Fu, Navios Astra and DL Pansy carrying containers, oil tankers, coal, bulk cargo and general cargo respectively sailed out to sea during the reported period.

There were seven vessels viz. Eleni-1, YM Elixir, Bunga Lavender, Bochem Chennai, MT Karachi, SAS FBO Eco and Star Capella carrying containers, oil tankers and general cargo respectively currently at the berths. There were two ships namely Ponente and Bochem Chennai carrying containers and oil tanker sailed out to sea on Wednesday, while two ships namely Eleni- 1 and YM Elixir carrying containers respectively are expected to sail on Thursday.

There was one vessel viz. EL Gurdabia carrying oil tanker due to arrive on Wednesday, while seven vessels viz. UNI Premier, Teera Bhum, APL Seattle, Makita, Bao Success, Pacific Dream and Atlas Explorer carrying containers, steel and oil tanker are due to arrive on Thursday.

PORT QASIM

A cargo volume of 107,485 tonnes comprising 79,923 tonnes of import cargo and 27,562 tonnes of export cargo inclusive 1,270 loaded and empty containers (TEUs) was handled at Port Qasim during the last 24 hours on Wednesday. The total import cargo of 79,923 tonnes includes 49,256 tonnes of furnace oil; 7,256 tonnes of diesel oil; 4,700 tonnes of palm oil; 1,400 tonnes of chemical; 4,550 tonnes of rape seed, 1,608 tonnes of soyabean seeds and 11,153 tonnes of containerised cargo.

The total export cargo of 27,562 tonnes includes 2,400 tonnes of chemical; 12,185 tonnes of cement and 12,977 tonnes of containerised cargo. As many as 1,270 containers comprising 587 containers import and 683 containers export were handled during the last 24 hours on Tuesday. There were four ships namely CV Asir, MV Vinalines Global, MV Atlantic Glory and MT Lahore sailed out sea on Wednesday morning, while two more ships namely MV Inlaco Brave and MT Oriental Oki are expected to sail on the same day afternoon.

A total number of ten vessels viz. CV Asir, CV MSC Irea, MV Ikan Pandan, MV Vinalines Global, MV Inlaco Brave, MT ECE Nurk, MV Atlantic Glory, MT Prosperity, MT Oriental Oki and MT Lahore currently occupied berths to load/offload containers, cement, rape seed, soya bean seeds, chemical, palm oil and furnace oil respectively during the last 24 hours.

As many as seven ships namely CMA CGM Verdi, Desh Prem, MT Quetta, Ince Ilgaz, Genunie Hercules, Beach Galaxy and Ocean Future with containers, rape seed, furnace oil, chemical, phosphoric acid and

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PLP NEWS ALERTS EMAIL No. 196-2014 wheat are currently at the outer anchorage of Port Qasim. There are six vessels viz. CV CMA CGM Verdi, CV Safmarine Ngami, CV Maersk Columbus, MT Ince Ilgaz, MV Desh Prem and MT Genunie Hercules carrying containers, rape seed, chemical and furnace oil expected to take berths at Qasim International Containers Terminal, FAP Terminal, Engro Vopak Terminal and FOTCO Oil Terminal respectively on Wednesday. There are two ships namely CV APL Oman and CV ER Denmark with containers due to arrive on Wednesday.

August 28, 2014

The Department of Pharmacy. University of Peshawar is going to conduct bioequivalence study of the locally manufactured pharmaceutical products for export, under the auspices of its Office of the Research Innovation and Commercialisation (ORIC).

The initiative has been agreed upon in a meeting of the representative/owners of various pharmaceutical companies of Khyber Pakhtunkhwa with the Vice Chancellor UoP Professor Dr Muhammad Rasul Jan. The aim is to boost local drug exports by optimising its use potential through trust building in the international market.

The delegation led by Imtiaz Ahmed also discussed matter pertaining to establishment of ISO certification and FDA approved labs at Khyber Pakhtunkhwa. Besides it was decided to take the relevant quarters on board in declaring UoP department of pharmacy as an appellant lab for the drugs manufacturers in the local pharma industry.

The locational disadvantage and more importantly the prevailing law and order situation has been the main cause of woes for the local industry, said Vice Chancellor UoP Professor Dr Muhammad Rasul Jan. He added energy problems and costly raw material has made it difficult for the manufacturing companies to compete within the country on the basis of economy.

The Vice Chancellor viewed that bioequivalence study of the local drugs would build confidence of the consumer on its efficacy and resultantly enhance exports. The modern role of Universities was to build knowledge economies and extend University Industry liaison for socio economic development of the country, he informed.

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PLP NEWS ALERTS EMAIL No. 196-2014 Karachi Airport: Unusual security causes flight delays

August 28, 2014

Domestic and international flights were delayed due to unusual security measures at Jinnah Terminal of Karachi Airport on Wednesday. The airport authorities have failed to explain the cause of unusual security and deployment of military troops at the country's biggest airport. Civil Aviation staff and employees of airline companies were stopped from entering the airport due to security measures.

However, they were allowed to enter the airport after strict monitoring. Additional patrolling by Pakistan Army was witnessed around the airport area whereas the routes leading to Old Terminal and Airport Security Force (ASF) Headquarters were sealed. It should be noted that 30 people, including 10 Taliban terrorists, were killed when militants stormed the airport on 8th June 2014.

August 28, 2014

The Pakistan International Airline Retired Employees Association (Piarea) is holding the launching ceremony of its official magazine "Mujjalla Piarea Pyambar" on Saturday (August 30) at PIA Garden, Gulshan-e-Iqbal. According to the press statement issued by the Organising Secretary Piarea Mohammad Azam, Eid Milan party would also be held along with the launching ceremony of the magazine.

The ceremony will be presided over by former Managing Director PIA and Guardian Piarea Arif Ali Khan Abbasi while the participation of Managing Director PIA Shahnawaz Rehman as the chief guest is also expected. A big number of former directors, general managers, and employees of the national airline are to attend this ceremony.-PR

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PLP NEWS ALERTS EMAIL No. 196-2014 MoU for mass transit train signed: Zardari attends Beijing moot

August 28, 2014

Former President Asif Ali Zardari and Pakistan People''s Party Chairman Bilawal Bhutto Zardari attended the Sindh Business Conference in Beijing on Wednesday. Prominent investment companies and groups attended the conference. Speaking on the occasion, former President Asif Ali Zardari invited investors to invest in economic projects of mutual advantage in Pakistan. Sindh chief minister, Syed Qaim Ali Shah, also addressed the conference.

Copyright Independent News Pakistan, 2014 NHA projects on BOT basis: whistleblower Pakistan points out violation of PPRA rules

August 28, 2014

IQBAL MIRZA

Whistleblower Pakistan in a letter sent to Chairman, National Highway Authority (NHA) on August 27 has pointed out the violation of rules in processing of Karachi-Lahore Motorway, Hyderabad-Sukkur 296 KM and Khanewal-Lahore 276 KM on BOT basis Chairman Whistleblower, Syed Adel Gilani said he had received General Manager (P&CA), National Highway Authority (NHA) reply dated August 11, 2014 on the issue of pre-qualifying firms which are blacklisted by any employer.

The clarification given by the GM that the PPRA has not objected to considering the blacklisted firms by the employer of World Bank & Asian Development Bank funded projects, is not correctly reported by the GM NHA, as the PPRA has confirmed that it has not given any such NOC to the NHA. M/s CSCEC is debarred on the collusive practice in bidding, as admitted by M/s CSCEC.

Rule No 2 (f), describes collusive bidding as corrupt and fraudulent practices. (f) "Corrupt and fraudulent practices" includes the offering, giving, receiving, or soliciting of any thing of value to influence the action of a public official or the supplier or contractor in the procurement process or in contract execution to the detriment of the procuring agencies; or misrepresentation of facts in order to influence a procurement process or the execution of a contract, collusive practices among bidders (prior to or after bid submission) designed to establish bid prices at artificial, non-competitive levels and to deprive the procuring agencies of the benefits of free and open competition and any request for, or solicitation of anything of value by any public official

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PLP NEWS ALERTS EMAIL No. 196-2014 in the course of the exercise of his duty.

Gilani said, "How can any procuring agency in Pakistan dare to pre-qualify a firm which has been convicted of corrupt and fraudulent practices?"

According to the evaluation criteria of the NHA given in the prequalification documents is that the applying firm/ JV shall submit an affidavit of not having been declared ineligible/blacklisted by any employer. In view of the declared evaluation criteria of announced by the NHA as per Rule 16, the NHA can not process the application of any firm which has been blacklisted by the PPRA, Punjab PPRA, Sindh PPRA, KPK PPRA, or any employer in the World.

According to Rule 30, no evaluation criteria shall be used for the evaluation of bids that had not been specified in the bidding documents, and this rule is applicable to the evaluation of short listing, prequalification, technical evaluation as well as financial evaluation also.

30. Evaluation of bids. Copies of the letter have been forwarded for information with the request to take action under their mandate to: Secretary to Prime Minister, Islamabad, Khurshid Shah, Leader of Opposition & Chairman, PAC, National Assembly, Islamabad, Chairman, NAB, Islamabad, Registrar, Supreme Court of Pakistan, Islamabad, and Managing Director, PPRA, Islamabad.

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PLP NEWS ALERTS EMAIL No. 196-2014 Company News: Pakistan Maple Leaf Cement

August 28, 2014

The Maple Leaf Cement (KSE: MLCF) is part of the Kohinoor Maple Leaf Group (KMLG), founded in early 1950s. Aside from the cement manufacturer, the group is also comprised of the Kohinoor Textile Mills Limited. MLCF has one of the largest cement plants in the country, with an installed annual capacity of 3.37 million tonnes of cement. The company was established as a joint collaboration between the West Pakistan Industrial Development Corporation and the Government of Canada. The plant is located at Daudekhel (Districk Mianwali) in the northern region.

MLCF was acquired by KMLG under the privatisation policy of the Government of Pakistan in 1992. Currently, Kohinoor Textile Mills is the holding company of MLCF. At the time of privatization, the company had a capacity of 1,000 tonnes per day (tpd) for Ordinary Portland Cement (OPC). Subsequently, another plant with a capacity of 4,000 tpd was commissioned in 1998, followed by a third plant with a capacity of 6,700 tpd in 2006. Further, the capacity for White Cement was also increased from 100 tpd to 500 with the addition of a new plant. This plant has provisions for doubling the capacity for production of White Cement to 1,000 tpd. The plants were supplied by FLSmidth, Denmark and are reported to be compliant with National Environment Control standards.

Aside from OPC and White Cement, MLCF also deals in specialised cement such as SRC (Sulphate Resistant Cement), Low Alkali Cement and Oil Well Cement. MLCF is the only local cement manufacturer producing Oil Well Cement.

With the increase in prices of furnace oil, MLCF had also adopted coal as the primary material for kiln firing at the plant, while possibilities of alternative and cheaper fuels, such as waste firing are also under consideration of the company. MLCF is headquartered in Lahore and is governed by a board of eight members. Tariq Sayeed Saigol serves as the Chairman of the Board, while Sayeed Tariq Saigol is the current CEO of the company.

Industrial review At 26.14 million tonnes, total cement sales for FY14 have been the highest ever recorded in the sector. Exports, however, witnessed a decline of 2.9 percent compared with last year, mainly on account of suppressed demand from Afghanistan. On the other hand, local sales registered their highest annual quantum at 34.28 million tonnes, increasing by 2.4 percent year on year.

Local sales experienced a significant uptick from the Rawalpindi-Islamabad Metro Bus Project lately, while the increasing trend has also been projected to continue over the current year on account of key mega projects including Khanki Barrage, Bhasha Dam and the recently approved Karachi-Lahore Motorway and Dasu Dam. Further, the government has also allocated a sizable portion of the PSDP toward infrastructure development. The sector has also been witnessing expansion by some of the leading players. However, sales slowed down with the beginning of FY15 due to limited activity during the month of Ramazan. Sales were also slightly affected due

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PLP NEWS ALERTS EMAIL No. 196-2014 to blockages of routes as the Azadi March progressed towards the capital earlier this month.

FINANCIAL PERFORMANCE 9M FY14 Net sales registered an increase of 9 percent year on year during the period, mainly on account of passing of incremental costs of hike in power tariff. The increase in prices also incorporated for other inflationary pressures. Gross profits rose by 7 percent compared with the corresponding period of the previous year.

The third quarter of the year proved to be especially active across the sector as construction activity in the country experienced an uptick. The increased activity resulted not only from mega-projects of the government but also due to demand from the private sector. Further, there was also higher utilisation of funds released under the Public Sector Development Programme (PSDP). Hence, MLCF also witnessed higher sales during the third quarter of FY14.

On the other hand, exports quantities and prices remained weak due to suppressed demand. Profitability was also affected due to continued load shedding of natural gas. Operating profits increased by a modest 3.2 percent during the period. Growth in operating profit resulted mainly from increase in the prices of cement and efficient operation of the Waste Heat Recovery Plant.

There was also a decline of 15 percent in financial charges of the company. Dropping down of interest rates, improved cash management, delivering and appreciation in the value of Pak Rupee jointly contributed to this decline. Further, repayment of debt obligations, including Sukuk/Syndicate is also underway at MLCF. Overall, MLCF was able to post a decent growth of 10 percent in net earnings during the nine-month period.

Future outlook Like other players in the sector, MLCF has also been expecting an uptick in cement demand, resulting from public sector projects related to infrastructure development in the country. Demand is also expected to increase from an uptick in construction activity by the private sector. Moreover, cement prices are also projected to remain stable and are likely to result in profitability growth for MLCF.

On the export front, demand has been hit due to the uncertain political climate in Afghanistan and higher competition from low-priced Iranian cement. Demand from India, the second largest export destination, has also been muted during the year. Weaker export demand has subdued the positive impact of stability in the international prices of coal and appreciation in the value of Pak Rupee. The most important factor in the near future, however, would be political stability within the country, particularly in the light of government's budgetary allocations to infrastructure development.

======MLCF-Key financials ======Nine-months ended ======Rs (mn) 31-Mar-14 31-Mar-13 ======Sales-net 13796.7 12704.8 Cost of sales -9204.7 -8419.6 Gross profit 4592.0 4285.2 Distribution cost -749.2 -572.8

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PLP NEWS ALERTS EMAIL No. 196-2014 Administrative expenses -213.3 -184.4 Other operating expenses -137.6 -102.9-1100.1 -860.0 Other operating income 71.2 27.7 Operating profit 3563.1 3452.8 Finance cost -1129.6 -1330.6 Profit before taxation 2433.4 2122.3 Taxation -21.9 74.9 Net profit 2411.5 2197.2 EPS-basic & diluted (Rs) 4.6 4.2 ======

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PLP NEWS ALERTS EMAIL No. 196-2014 Taxation: Pakistan Sri Lankan Customs detains two Pakistan containers

August 28, 2014

The Sri Lankan Customs detained two containers imported from Pakistan declared as onions on suspicion on Wednesday evening, Custom's Spokesman Leslie Gamini said. He said Customs was waiting for the Court's Order to open the containers.

August 28, 2014

Customs Clearing, Forwarding and Borders Agents have said that National Accountability Bureau (NAB) during its ongoing investigations into Nato-ISAF container scandal has not proved allegations against any member of the community in Karachi, Peshawar and Quetta. But, they said that no officer from National Logistic Cell (NLC) and Pakistan Railways has been included in the investigation.

According to sources, former member Customs, Hafiz Mohammad Anis (late) have prepared Nato-ISAF Container Report, which have revealed the missing of 28000 containers inside Pakistan and without crossing border into Afghanistan. On the publishing of the report in media, former Chief Justice of Pakistan, Justice Iftikhar Mohammad Chaudhry while taking suo motto notice have directed the NAB for conducting inquiry into the matter. However, former Federal Tax Ombudsman (FTO), Dr Shoaib Suddle instead of the missing of 28000 containers had prepared a report of the missing of 7922 containers.

On the basis of Dr Shoaib Suddle Report, NAB filed a reference in which customs clearing, forwarding and borders agents from Karachi, Peshawar and Quetta were put under investigation. The customs clearing, forwarding and borders agents that former chairman, Federal Board of Revenue (FBR) through a notification issued on August 26, 2006 have totally abolished the role of borders agents in the business of Afghan Transit Trade. Similarly, neither Customs Law nor Customs Act has any mentioning of the role border agent.

The sources said that despite the passage of the period of two years, NAB has failed in presenting proof against any customs clearing, forwarding and borders agent. However, customs clearing forwarding and borders agents from Khyber Pakhtunkhwa and Chaman (Balochistan) attends proceedings in accountability courts in Karachi due to which they are not only bearing

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PLP NEWS ALERTS EMAIL No. 196-2014 additional expenses, but also passing through mental agony.

The sources added that despite having the responsibility of the transportation of Nato container in the period (2007-10) during which the scandal occurred was with NLC and Railway, but they were given clean chits. Similarly, according to a report prepared by former Collector Customs, Peshawar Younas Khan, the number of the missing container is merely 28 to 30, while NAB is carrying inquiry into the case of 7922 containers.

Furthermore, customs clearing, forwarding and borders agents say that though their own provinces have the offices of NAB, but instead of the investigation and inquiries into their cases in the regions concerned they have to summoned to Karachi and in case of the absence of any agent out of 450 the proceeding used to adjourned till next date. In such situation, each agent had to go to Karachi twice in a month.

The customs clearing agents are bringing the situation time to time in the notice of the officials of NAB, FBR and concerned Customs Collectorate. But, they are not getting any relief. The customs clearing, forwarding and borders agents have appealed the Chief Justice of Pakistan for conducting their investigations in the regional offices of NAB in their concerned regions and mitigate their agony of coming to Karachi again and again.

August 28, 2014

Active Taxpayer List (ATL) will be updated by the Federal Board of Revenue (FBR) on a fortnightly basis and it will be amended if the taxpayer has filed the tax return or statement under Income Tax Ordinance, 2001. The FBR has issued SRO.765(I)/2014 here on Wednesday to amend the Income Tax Rules, 2002 pertaining to Active Taxpayer List and Taxpayer Card.

The FBR has specified through the rules that the FBR may authorize National Database and Registration Authority (NADRA) for printing and issuing taxpayers cards. According to the rules on Active Taxpayer List, the FBR said that the rule shall apply for the purpose of clauses (23A) and section 35C of section 2 and section 181A. The Board shall publish Active Taxpayers List, hereinafter referred to as ATL, comprising persons who meet the criteria as laid down and shall be made available on the Board's web portal, by first day of March in each financial year. Provided that for financial year 2014-15, Active Taxpayers list shall be published and made available on the Board's web portal, by first day of July, 2014.

The ATL published in any financial year shall be valid for the period, beginning from the date of publish and ending on last day of February, next following. The ATL shall be updated on fifteenth day of every month, hereinafter referred to as the date for up dating.

The rules said that a person's name shall be included in ATL, if he has filed a return under section 114 or a statement under section 115 for the tax year for which the last date as specified in section 118 falls in immediately preceding twelve months. In case a joint account is held in a bank by more than one person the joint account holders as an entity shall be deemed to have met

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PLP NEWS ALERTS EMAIL No. 196-2014 the criteria as laid down under sub-rule (5), if any of the persons in the joint account meets the criteria as laid down.

In case an account is held in a bank in the name of a minor, the minor shall be deemed to have met the criteria as laid down under sub-rule (5), if the parent, guardian or any person who has made deposits in the minor's account meet the laid down criteria. The rules said that a person's name shall be included in ATL immediately following updation date, if at any time, the criteria as laid down under sub-rule (5), is fulfilled by that person.

The rules pertaining to the Taxpayer Card said that the rule shall apply for the purposes of clauses (23A and (35C) of section 2. Subject to sub-rule (5), the Board may issue Taxpayer Card by first of March, each year, to a person who meets the criteria as laid down in sub-rule (3).

A Person shall be issued Taxpayer Card, if the person has filed a return under section 114 or a statement under section115 for the tax year for which the last date as specified in section 118 falls in between immediately preceding twelve months. Taxpayer Card shall be valid for one year, beginning on the date of issue and ending on last day of February of the following year. Provided that Taxpayers Cards issued in respect of tax year 2013, shall be valid up to February 28, 2015. The Board may authorize National Database and Registration Authority (NADRA) for the purpose of printing and issuing taxpayer cards, new rules added.

August 28, 2014

Expressing displeasure over 'dispute resolution capacity' of the Federal Board of Revenue (FBR), Federal Tax Ombudsman (FTO) Abdur Rauf Chaudhry has observed that no response or delayed response to the public correspondence is a perennial problem with the tax departments working under the FBR.

In a latest order issued here on Wednesday, FTO said that the complaints are examined in the light of written/oral submissions of the parties and the documents on record. Non-responding or delayed responding to the public correspondence is a perennial problem with the tax departments being administered by the FBR. It not only constitutes maladministration under Section 2(3) of the Ordinance, but also involves violation of the FBR's instructions issued vide Standing Order No 6(23)Coord/2011 dated 03.03.2011. Neglect of public correspondence by tax departments causes frustration and adds to the agony of the aggrieved taxpayers. The FTO Office has been particularly focusing on this long standing problem and recommending systemic redress of this malaise. It, however, appears that this systemic problem is defying redress. It, thus, continues to disappoint and estrange the aggrieved taxpayers with the dispute resolution capacity of the FBR and its tax departments, the FTO said.

The complaint was filed in terms of Section 10(1) of the FTO Ordinance, 2000 (the Ordinance) alleging failure of Customs authorities at Lahore to settle a claim for payment of freight charges

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PLP NEWS ALERTS EMAIL No. 196-2014 out of sales proceeds of auction of PVC scrap transported by the Complainant from Karachi Port to Lahore dry port.

As regards, the scope of the terms 'freight and other charges' used in the aforesaid provisions of the law, it is for the FBR to clarify as to whether or not the inland freight charges payable on goods which are lawfully imported into the country but abandoned by the importer at a port or dry port are covered by the aforesaid term used in Section 201(2)(b) of the Act. As the interpretation of law falls outside the FTO jurisdiction, the FBR may examine the issue in the light of contentions of the parties and make an appropriate clarification. If it is concluded that inland freight, if any, is payable from the sale proceeds in terms of Section 201(2)(b), a clarification may be incorporated in the Auction Rules. The problem also appears to be that the Auction Rules notified vide Chapter (V) of SRO 450(I)/2001 dated 18.06.2001 or the Customs Standing Order No 16/2001 dated 17.11.2001 do not contain any instructions for the Customs staff to include freight or other charges payable under Section 201(2)(b) of the Act in the reserve price of auction able goods. Therefore, when it comes to payment of such freight charges out of sale proceeds of auction, the Customs authorities resist payment. The Deptt explained this limitation vide additional arguments submitted in its letter dated 28.05.2014 contending that inland freight charges cannot be paid out of the sale proceeds as these charges are not included in the reserve price.

According to the findings of the FTO, the failure of the dept to respond to the complainants letters/applications dated 02.01.2013 and 17.05.2013 and excessively delayed response of the Deptt to the Complainant's letter dated 01.08.2013 as late as 25.02.2014, ie, after almost seven months, constitute maladministration in terms of Section 2(3)(ii) of the Ordinance.

The FTO has recommended the FBR to examine and decide whether or not freight charges involved in inter-port transport of goods, transshipped by Customs bonded transporters, are payable in terms of Section 201(2)(b) of the Act, from sale proceeds of auction of goods other than confiscated goods, if not paid by the importers. If inland freight charges are held to be payable in terms of Section 201(2)(b), a suitable amendment be made in the Auction Rules notified vide Chapter-V of SRO 450(I)/2001 dated 18.06.2001. Procedure may also be added to the proposed amendment how best to determine the exact amount of freight charges payable by the importer;

In case it is decided by the FBR that payment of inland freight charges is not covered under the scope of Section 201(2)(b) of the Act, the Customs authorities be directed to issue a speaking order to enable the complainant to avail remedy of appeal under the Act and report compliance within 45 days.

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PLP NEWS ALERTS EMAIL No. 196-2014 'Civic bodies share in OZT not increased'

August 28, 2014

MOHAMMAD BILAL TAHIR

Sindh government despite having financial autonomy under the 18th Constitutional Amendment was not increasing the Octroi Zilla Tax (OZT) of the civic bodies of the province in accordance with population, it emerged on Wednesday. According to KMC Sajjan Union's President Syed Zulfikar Shah, "It has been decided in the Provincial Finance Commission (PFC) award that OZT share of the civic bodies will be increased by 20 percent every year for smooth functioning of civic bodies including Karachi Metropolitan Corporation (KMC)."

He said that although it was mandatory under the PFC to disburse the financial resources among the civic bodies keeping in view population and other requirements in mind, funds to the KMC were being released in accordance with 1998 census despite the fact that the city's population has been doubled in the last 15 years.

He accused Sindh government of not adopting smooth process of disbursement of funds to the civic bodies despite getting allocation of Rs 200 billion for civic bodies of the province under National Finance Commission (NFC) award. On the other hand, KMC and district municipal corporations are still waiting for the implementation of the decision concerning 20 percent extra share of OZT. Sources regretted that Sindh finance department has, so far, failed to honour its commitment of increasing OZT share by 20pc.

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PLP NEWS ALERTS EMAIL No. 196-2014 Cotton and Textiles: Pakistan Cotton market: persistent demand helps prices remain firm

August 28, 2014

Continued buying by mills and exporters boosted the rates to held firmness on the cotton market on Wednesday, dealers said. The official spot rate maintained overnight level at Rs 5,600, they added. In ready session, over 23,000 bales of cotton changed hands between Rs 5600 and Rs 5750, they said. In Sindh, prices of seed cotton went up with modest rise of Rs 50 to Rs 2600 and Rs 2650 and in Punjab prices were higher at Rs 2700 and Rs 2725, they said.

Market sources said that prices despite the dollar's fall in the money market, the buyers did not stop buying, instead they increased purchasing due to rains in Punjab. It seems that mills and spinners may continue purchasing in times to come, they said. Naseem Usman, cotton analyst, commenting on the present political situation in the country, said that traders were expecting some positive development to bring the back on track.

Reuters adds: Cotton futures jumped to a one-month high on Tuesday, as mills spied buying opportunities and traders covered short positions. The benchmark December cotton contract on ICE Futures US closed up 0.74 cent, or 1.1 percent, at 66.95 cents a lb after a flurry of late- session buying lifted prices as high as 66.95 cents. The following deals reported: 3200 bales of cotton from Shahdadpur at Rs 5600, 2400 bales from Tando Adam at Rs 5600, 1000 bales from Hyderabad at Rs 5600, 2400 bales from Mirpurkhas at Rs 5600, 800 bales from Kotri at Rs 5600, 3000 bales from Sanghar at Rs 5600, 600 bales from Vehari at Rs 5650-5660, 400 bales from Duniyapur at Rs 5650-5675, 200 bales from Pak Pattan at Rs 5660, 200 bales from Jahania at Rs 5675, 1200 bales from Burewala at Rs 5675-5700, 400 bales from Bahawal Nagar at Rs 5700, 200 bales from Chak Jhumra at Rs 5700, 200 bales from Faqirwali at Rs 5700, 1000 bales from Chistian at Rs 5700, 1000 bales from Mian Chano at Rs 5700, 1400 bales from Haroonabad at Rs 5700, 400 bales from Chinute at Rs 5700-5725 and 1200 bales from Khanewal at Rs 5750, 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 26.08.2014 ======37.324 Kgs 5,600 155 5,750 5,750 Nil ------Equivalent ------

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PLP NEWS ALERTS EMAIL No. 196-2014 40 Kgs 6,002 155 6,162 6,162 Nil ======Central Executive body: PCGA's ginner group elected unopposed

August 28, 2014

Election Commission of PCGA headed by Sajjad Hussain has announced after scrutiny of the nomination papers that Ginner group of Pakistan Cotton Ginners Association (PCGA) swept all the 15 vacant seats of Central Executive Committee (CEC) for the seventh time and elected unopposed because no other candidate turned up for the contest.

Briefing the media men along with its two members Khawaja Farooq Ahmed and Mehfooz Ahmed, he said the following were elected as member of Central Executive Committee of PCGA. They are: Shehzad Ali Khan (Muzaffargarh) Jamil Ahmed (Fort Abbas-Bahawalnagar) Aman-ullah Qureshi (Rajanpur) Malik Muhammad Ibrahim (Jampur) Chaudhry Naeem Ahmed (Yazman) Chaudhry Khalid Rafiq (Liaquatpur)Malik Ghulam Mustafa Khanwa (Dera Ghazi Khan)Rana Naveed Ahmed (Khanewal) Sajjad Haider Gujjar (Rahimyarkhan) Muhammad Zahid Islam (Toba Tek Singh) Mukhtiar Ahmed Chaudhry (Burewala) Rana Rashid Ali, (Sangarh) Haresh Kumar (Tando Adam)Duleep Kumar (Nawab Shah) and Ramesh Lal (Deharki).

Later, Chairman of Ginners group Haji Muhammad Akram while addressing a press conference along with Mukhtar Ahmed Baloch (sitting Chairman) Sheikh Muhammad Saeed (ex-Chairman) Shehzad Ali Khan, Aasim Saeed Sheikh sitting Vice Chairman and Zaid Ali Khan has said that ginners community had reposed confidence in the ginner group and this group would never betray them and it would continue its services for the cause of the community.

August 28, 2014

TAHIR AMIN

In a bid to save country's textile industry from complete disaster and boost exports to India, All Pakistan Textile Mills Association (APTMA) has proposed the government to ensure level- playing field for the local industry in trade negotiations with India, it is learnt. Official sources told to Business Recorder that ministry of Textile Industry has sought input from all the stakeholders to come up with a comprehensive textile policy (2014-19).

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PLP NEWS ALERTS EMAIL No. 196-2014

The proposals submitted by APTMA to the ministry states that to provide Pakistan a fair chance for enhancing exports to India, a level-playing field shall be provided to Pakistani industry otherwise we will open flood gates for Indian exports while Pakistan side will not be benefit from this new arrangement. The Association further maintained that they are entering into a new trading arrangement with India, having long-term implications; the duty structure between the two countries must be equal and on reciprocal basis without any discrimination, and Non-Tariff Barriers hurting exports to India in the context of textiles is secured while negotiating the terms of the arrangement with India.

The proposals further maintained that if finished goods are placed in the positive list of items then the raw materials required for manufacturing of those goods should also be placed on the positive list of items to be imported from India. A serious anomaly in this regard is noted in the case of polyester staple fiber/filament which is a raw material included in the negative list of items and its import is not allowed from India; whereas finished goods made with fiber/filament such as synthetic yarn and fabrics are freely allowed to be imported from India.

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PLP NEWS ALERTS EMAIL No. 196-2014 Agriculture and Allied: Pakistan 'Abiyana recovery must for better canal system'

August 28, 2014

Provincial Minister for Irrigation Mian Yawar Zaman has said that recovery of abiyana is equal responsibility of Kisan organisations as well as government officers and staff. He said that recovery of abiyana is of great important for the repair and maintenance of canals and survival of canal system. He said this while talking to officers of Irrigation department and PIDA here on Wednesday.

Additional Secretary Irrigation Malik Muhammad Saleem, Chief Engineer (Lahore Zone) Khalid Hussain Qureshi, General Manager PIDA Afzal Anjam Toor, Deputy General Manager (Social Mobilization) Syed Shaiq Hussain Abidi and other senior officers were present on the occasion.

He stressed upon the officers to discharge their responsibilities towards recovery of abiyana so that necessary funds could be available for the maintenance of canals. He said that Punjab government is utilising all available resources for rehabilitation and survival of canal system. He said that the pace of work on mega projects has been accelerated so that canal water could be available to the farming community. Mian Yawar Zaman directed the officers that effective liaison should be maintained between Kisan organisations and staff of Irrigation department at canal divisions level so that the recovery of government dues could be improved. He further directed that besides activating representatives of water channel at local level, necessary assistance should also be provided to them for hundred percent recovery of abiyana and achieving the desired targets.

August 28, 2014

The provincial government of Khyber-Pakhtunkhwa cancelled the wheat quota of four flour mills in district Peshawar. The recommendation of the cancellation of the wheat quota was given by a committee constituted by the provincial government with Assistant Commissioner (AC) Peshawar, Mumtaz Ahmad as chairman. Other members of the committee included Ration Controller, Aftab Omar Mohmand and Assistant Director (AD) Industries, Naseem Bacha.

On the directives of the provincial government the committee visited all 40 flour mills of the district and drafted a report on closed and operational mills. Furthermore, it also checked the

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PLP NEWS ALERTS EMAIL No. 196-2014 quality of flour, wheat and cleanliness situation in them and presented a formal report to the provincial government in this regard.

According to that report, district Peshawar has a total of 40 flour mills out of which 36 are operational while remaining four are closed, whose quota has been cancelled. The remaining flour mills will be supplied wheat on daily basis. However, in case of closure the cancellation of other flour mills has also been recommended. The purpose for the constitution of the committee was to guarantee the supply of wheat to only operational flour mills and the cancellation of the quota of closed mills was the arrest of the wastage and illegal use of wheat.

August 28, 2014

On Wednesday at Pakistan Mercantile Exchange (PMEX) value traded was recorded at PKR 2.049 billion. The number of lots traded was 11,905 and PMEX Commodity Index closed at 3,012. Major business was contributed by crude oil amounting to PKR 1,322 million - up by 41 percent, followed by gold amounting to PKR 636 million and silver at PKR 90 million.

August 28, 2014

KMC Administrator, Rauf Akhter Farooqui has directed the corporation's officials related to medical and health services as well as veterinary and livestock departments to immediately initiate vaccination of cattle reaching the metropolis for sale prior to Eid e Qurban.

Chairing a meeting at his office on Wednesday, he said measures must be expedited to pre-empt any outbreak of Congo virus related ailment in the wake of cattle reaching Karachi during the current season. "It is not only a seasonal issue but also directly linked to the surge in cattle demand among people keen to realise their religious obligation on eve of Eid e Qurban," said Farooqui.

KMC Administrator referring to an estimated number of 130,000 animals brought into the city every year during Baqara-Eid said officers issuing certificates to the cattle reaching Karachi would be responsible for any detection of Congo virus among these animals.

He said as per directives of the provincial government KMC is providing all necessary facilities to the traders at the make-shift cattle market established every year in the metropolis. "Our focus is to and should be protection of public health," he said adding that all necessary assistance is

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PLP NEWS ALERTS EMAIL No. 196-2014 being provided to the veterinary doctors and technical staff assigned responsibilities in the cattle market.

Farooqui said urgent measures are also underway to improve health services and help prevent and also control outbreak of any disease that are registered at this point of season. He said co- ordination among all concerned departments was extremely essential and attention is also needed to raise public awareness about the means leading to spread of viral infections and measures that may largely prevent these. The meeting was informed that 16 veterinary hospitals were working in the city where needed treatment facilities are available to all animals.

It was also mentioned that Congo virus, spread through a tick, can be contracted by those handling or directly exposed to blood and secretion of the infected animal. The meeting resolved that people in general would be sensitised through concerted efforts to necessarily wash their hands and also use gloves while touching cattle and even its flesh. High temperature, body ache, vomiting or unexplainable bleeding from any part of body were identified as manifestation of Congo Crimean fever caused due to Congo virus that originated in Africa.

August 28, 2014

Karachi Fish Harbour Authority (KFHA) said on Wednesday the congestion at the navigational channel was caused by anchored boats despite the authority's repeated calls to clear berths. KFHA Officials rejected claims of boat owners that the new fishing voyages delayed because of the congestion hinting at the KFHA mismanagement, saying the channel is largely occupied by boats of different associations.

The Sindh Trawlers Owners and Fishermen Association (Stofa) had held the congestion at the fish harbour navigational channel responsible for delay in annual fishing sailing to sea, but the KFHA rejected the association opinion. "It happen every year at the channel when new season starts as fishermen and boat crew return to harbour late from month-long holidays to take their parked boats off the harbour," officials said.

No boat goes to sea immediately after the season starts from August 1, they pointed out, saying that fishing vessels, which are always parked at the channel despite KFHA warnings, cause the gridlock to hamper outgoing boats' movements. The fishermen had told Business Recorder this week that landing of the season's first bulk catch has not reached the harbour since fishing boats left for the sea late in the wake of channel gridlock.

Fishermen said the bulk landing of seafood may take weeks more to land at harbour. Vessels voyaged to sea around two-week late to hunt seasonal shrimps and blamed the channel congestion for the delay. "We have been issuing warnings to boats' owners who are affiliated with different associations to clean the navigational channel from their abandoned or parked vessels to help provide passage for incoming and outgoing boats," the KFHA official said.

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PLP NEWS ALERTS EMAIL No. 196-2014

China has great demand of Pakistani cuttlefish and squid fish. Exporters say China's import from Pakistan surged phenomenally in recent years, which is expected to grow further in future. Pakistan fisheries' export posted a robust growth of $49.82 million hitting a historic high of $367.472 million in the last fiscal year 2013-14. Pakistan largely export shrimp of all kinds to world different markets, fish varieties like cuttlefish, squid, Indian mackerel, red snapper, black and white pomfret, etc. Pakistan's major seafood markets are China, Middle East and Far East, exporters say.

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PLP NEWS ALERTS EMAIL No. 196-2014 Fuel and Energy: Pakistan 6,600 megawatts coal projects: date for submission of EoIs extended till September 29

August 28, 2014

MUSHTAQ GHUMMAN

The Private Power Infrastructure Board (PPIB) has extended the date for submission of Expressions of Interest (EoIs) till September 29, 2014 for 6,600 MW coal power projects planned to be installed in Gaddani (Balochistan) on the request of some prominent investors. Presided over by the Minister for Water and Power, Khawaja Asif, the hurriedly-called meeting also extended the EoI dates for hydel power projects. The meeting discussed six-point agenda.

Official sources told Business Recorder that the PPIB had fixed August 18, 2014 for EoIs from the potential investors, but investors did not evince interest due to political uncertainty. An official statement issued by the PPIB said the on-going private power sector projects were discussed in the meeting in the context of overall electricity situation in the country.

The minister advised that while remaining within legal limits, we should provide maximum facilitation to the projects, so that maximum number of megawatts are materialised. The Board was briefed that EoIs have been invited through local/international press for establishing coal- fired power plants at the 6,600 megawatt Gaddani Power Park. However, due to prevailing situation in the country, the expected response could not be achieved and many prominent investors have requested extension in the date for submission of EoIs. The Board approved the extension closing date as September 29, 2014 so that a healthy competition could be generated.

Hydropower projects were also discussed and it was decided to extend the Letter of Support of 870MW Sukki Kinari hydropower project on River Kunhar, District Mansehra, Khyber Pakhtunkhawa, which is included in the "early harvest projects" priority list of the China Pakistan Energy Corridor. This extension will allow the project authorities to take necessary measures to implement the project at the earliest. The board also desired removal of all bottlenecks for early development of 132 MW Rajdhani Hydropower Project in AJ&K with due co-operation of the Government of Azad Jammu & Kashmir. The PPIB acts as agent for and on behalf of the AJ&K Council for development, facilitation and implementation of power projects in AJ&K.

The meeting was attended by Sohail Akbar Shah, Additional Secretary Ministry of Water & Power/Managing Director PPIB, Zafar Mahmood, Chairman WAPDA, representatives of Ministry of Finance, Planning Division, Ministry of Petroleum & Natural Resources, Federal Board of Revenue, Punjab, Khyber Pakhtunkhawa provinces and AJ&K, a private sector member, besides executives directors and directors of PPIB and other senior government officials.

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PLP NEWS ALERTS EMAIL No. 196-2014 Copyright Business Recorder, 2014 Rs 71 million released for gas supply in Rawalpindi: SNGPL

August 28, 2014

Sui Northern Gas Pipeline Limited (SNGPL) has reported that an amount of Rs 71 million was approved and released for supply of natural gas to various villages/adjoining 'abadies' in District Rawalpindi. Giving details, an official of Ministry of Petroleum and Natural Resources said here on Wednesday the areas included Tarbella Colony and other localities against which Rs 8 million were allocated out of the above funds.

SNGPL has reported that it is fact that natural gas had not been supplied to the said colony so far due to the reasons that funds amounting to Rs 71 million were credited in Assignment account during November 2012 and all such projects which were approved during fiscal year 2012-13, fall under the purview of Constitution Petition-20 of 2013.

In addition to the above physical execution of works was also subject to the approval of Distribution Development Budget by Oil and Gas Regulatory Authority, they said. They further informed that in pursuant to directions of the Supreme Court (In CP-20) to re-examine the schemes announced after 2012-13 for feasibility by the competent authority, all gas distribution development schemes are being examined by the government for taking final decision for abandoning or completion of the same.

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PLP NEWS ALERTS EMAIL No. 196-2014 Fuel and Energy: World Crude oil little changed after oil inventory draw, Cushing build

August 28, 2014

Crude oil futures settled flat after choppy trading on Wednesday, following a report that showed declining US gasoline demand in the world's top oil consumer and a build at the key Cushing, Oklahoma, storage hub. In its weekly report, the US Energy Information Administration said US crude oil stocks fell by a greater-than-expected 2.07 million barrels last week, but inventories at Cushing, the delivery point for US crude futures, rose 508,000 barrels.

-- S Arabia's June crude exports fall to lowest in nearly 3 years

The four-week average for gasoline demand fell by 1.4 percent year-over-year. US crude failed to break through Tuesday's lows or highs, testing resistance at both ends in what traders call an "inside day." "The market is rangebound here and there's no catalyst to drive it out either way, so we're finishing the session more or less unchanged," said Bill Baruch, senior market strategist at iitrader.com in Chicago.

US crude rose 2 cents to settle at $93.88 a barrel after settling 51 cents higher on Tuesday on stronger US economic data. Brent crude for October delivery rose by 22 cents to settle at $102.72 a barrel, after swinging by $1 between $102.05 and $103.07. Oil benchmarks on both sides of the Atlantic have fallen by more than 10 percent since mid-June and remain on track to post a second monthly fall against a backdrop of lower US imports and slowing growth in China and Europe. Traders were watching to see whether the Buzzard oilfield in the North Sea, one of the biggest contributors to physical supplies underpinning Brent futures contracts, would return quickly after shutting again for additional maintenance.

Industry sources said the field was due to resume exports on Thursday after output was stopped for work on a drilling rig. It had restarted Monday after being shut for maintenance since July. Global oil supplies have been ample for much of the summer, capping price gains spurred by violence in Opec members Iraq and Libya.

Conflict with Islamic State militants in northern Iraq has not prevented oil exports from the south from holding at substantial levels, while Libya's exports have risen despite month-long clashes between rival militias. In Europe, Ukrainian President Petro Poroshenko promised after negotiations with Russia's Vladimir Putin to work on a cease-fire plan to defuse the separatist conflict in the east of Ukraine.

Any significant moves toward a truce between Kiev and two rebel eastern regions could mean an eventual move toward ending sanctions on Russia, the world's second-largest oil exporter. Saudi crude exports fell in June to their lowest levels in almost three years as oil use in its power sector rose, official data showed, though industry sources say Opec's largest producer raised output in July.

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PLP NEWS ALERTS EMAIL No. 196-2014 Copyright Reuters, 2014 Sinopec says first half net profit up 7.5 percent

August 28, 2014

Chinese oil giant Sinopec said Friday its net profit for the first half of 2014 was up 7.5 percent year-on-year, despite weakened domestic demand for oil products. Asia's largest refiner by capacity said its net profit for the six months to June 30 was 32.54 billion yuan ($5.29 billion), up from 30.28 billion yuan from the same period last year.

However, its revenue fell 4.2 percent to 1.36 trillion yuan from 1.42 trillion yuan year-on-year, it said in a filing to the Hong Kong stock exchange where it is listed, late Friday. Its operating profit was up 11.8 percent year-on-year at 52.27 billion yuan. "In the first half of 2014, China's economy maintained its moderate growth while the growth rate of domestic demand for oil products slowed, with petrochemical product prices declining in the face of severe market competition," it said in the filing.

Petroleum products including refined oil products and other refined petroleum products, which makes up almost 60 percent of its turnover and other operating revenues, saw external sales revenue of 809.4 billion yuan, a decrease of 1.3 percent for the reported period compared to 2013. Its external sales for chemical products, which accounts for 13.1 percent of its turnover, was 177.2 billion yuan, a decrease of 1.7 percent compared to the previous year.

"We expect international oil prices to fluctuate continuously at a high level during the second half of 2014," the company said. "Domestic demand for oil products, especially for gasoline, is expected to grow rapidly," it said. China in March of last year introduced fuel pricing mechanisms more in line with international market standards, giving more room for oil companies to set prices closer to market rates.

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PLP NEWS ALERTS EMAIL No. 196-2014 Banking & Finance EMO becomes popular money transfer service

Wednesday, 27 August 2014 15:46

Posted by Parvez Jabri

ISLAMABAD: Electronic Money Order (EMO) service has become one of the most popular money transfer services of Pakistan Post.

Officials of General Post Office (GPO), claimed that the number of people taking benefits from this service is due to its easy procedure and nominal service charges.

The officials informed that with the countrywide popularly and great success, the service would be extended to all post offices to facilitate more people.

They said that initially the EMO service was launched in 83 GPOs across the country; including Islamabad, Rawalpindi, Lahore, Faisalabad, Multan, Sialkot, Peshawar, Quetta, Karachi and Hyderabad.

The officials said that the service allows customer for quickly transferring of money within the country.

"Customer can transfer money up to Rs 100,000 instantly through EMO Service at very nominal charges ranging from Rs 50 to Rs 600," they added.

Wednesday, 27 August 2014 15:18

Posted by Parvez Jabri

JHANG: Two new branches of Zarai Taraqiati Bank Limited (ZTBL) were inaugurated, one in Chund Bharwana and the other one in Gojra Morh.

Syed Talaat Mahmood, President and Chief Executive officer ZTBL was the chief guest in the inaugural ceremonies.

Talking to APP after inaugurating the new bank branches, Syed Talaat Mahmood said that with the start of 2 new branches the total number of ZTBL branches rose to 384 along with 32 zonal offices. BACK TO HEADLINES Page 54

PLP NEWS ALERTS EMAIL No. 196-2014 He further said that 32 new braches would start functioning at the end of current fiscal year. He said the farmers and land owners of the adjoining areas of Chund Bharwana and Gojra Morh would get agri loaning facilities.

He said that agri advances worth Rs 70 billion were awarded during current fiscal year and these advances would be increased upto Rs 90 billion as per vision of Prime Minister Mian Nawaz Sharif.

MNA Mehr Ghulam Muhammad Lali, MPAs Molana Rehmatullah, Khan Muhammad Baloch and Imtiaz Ahmed Lali and ex-MNA Nawab Amanullah Sial, MNA Ghulam Bibi Bharwana, and others were also present.

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PLP NEWS ALERTS EMAIL No. 196-2014 Markets LSE downs by 20.49 points

Wednesday, 27 August 2014 20:08

Posted by Imaduddin

LAHORE: Lahore Stock Exchange here Wednesday witnessed bearish trend by losing 20.49 points, as the LSE Index-25 opened with 4948.35 points and closed at 4927.86 points.

The market's overall situation, however, corresponded to an upward trend as it remained at 953,840 shares to close against previous turnover of 932,700 shares, showing an upward move of 21,140 shares. While, out of the total 78 active scrips six moved up, 31 shed values and 41 remained equal.

The Major Gainers of the day were Thal Limited, Pakistan Oil Fields Limited and Silk Bank Limited (Saudi) by recording increase in their per share value by Rs 4.85, Rs 1.05 and Re 0.13 respectively.

Mari Petroleum Company, Pakistan State Oil Company Limited, and Oil and Gas Development Company Limited lost their per share value by Rs 11.21, Rs 7.11 and Rs 5.11 respectively.

Top three Volume Leaders of the day included The Bank of Punjab Limited with 279,000 shares, Faysal Bank Limited with 157,500 shares and Askari Bank Limited with 104,500 shares.

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PLP NEWS ALERTS EMAIL No. 196-2014 BR Research: All The GIDC dent

August 28, 2014

BR Research

“Anything that can go wrong will go wrong”, Murphy’s Law is surely applying on the PMLN’s government. There is another dent on the macroeconomic stability as the Supreme Court has rejected government’s petition against the Peshawar High Court’s ruling of declaring Gas Infrastructure Development Cess Act unconstitutional.

As the name suggests, GIDC was introduced in 2012 to collect taxes for development of IP, TAPI gas pipelines and any other infrastructural related such as LNG gas terminal and its connection to the nationwide supplies. Since both the pipelines’ projects have been shelved temporarily while there is no progress on any other infrastructure; all the taxes collected in the previous years (Rs131bn) have been consumed for budgetary support which is against the essence of the levy.

Additionally, there is another lacuna as gas is a provincial subject and any tax imposed by Federal Government is in encroachment to provincial domain and GIDC has remained controversial ever since its inception. However, the IMF was keen on government to levy this tax in order to enhance fiscal revenue. That is why Dar naively enhanced the GIDC target to Rs145 billion (0.5% of GDP) in FY15 as compared to FY14 collection of Rs88 billion under the head.

There was additional burden on the general industry with a levy of Rs300/mmbtu; but on the pressure of lobbies in the various industries and for right reason to facilitate growth, the tax was slashed to half for general industries with more relief to power sector (levy slashed to Rs100/mmbtu) and cement sector was completely exempted. Rs50 billion from the target was straightaway evaporated to limit at Rs95 billion. On the flip, it’s good for the exports and other industries as this will result in higher earnings.

Now the decision is not only to withdraw existing levy but also to transfer back the entire amount that is collected so far under GIDC in the last three fiscal years amounting Rs131 billion has to be reimbursed. This may be difficult to implement as various industries passed the burden on to the end consumers. Government may contest against it and is likely that it may not have to pay back.

The problem is that how will the gap of 0.5 percent of GDP be bridged in an already stressed budget. The IMF will not be amused with the decision and surely push the government to impose an alternate tax. It won’t be an easy task given the PML-N government is in a tight spot.

The fund has not completed the fourth review yet probably based on government not increasing power tariff by a mere four percent. To add the ado, Imran’s movement of civil disobedience makes the fund more reluctant to release fifth trance. The annulment of GIDC would make the government’s case even worse.

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PLP NEWS ALERTS EMAIL No. 196-2014

The causality in the process would be the curtailment of federal development budget. With higher share of provinces, federal PSDP has been shrinking in the past and it is budgeted at Rs525 billion in FY15. It will surely be much less and it’s going to dent the growth target. However, higher exports and earnings of other industries due to removal of the levy may partially offset the setback coming from lower PSDP.

The government needs to ponder upon the mechanism to develop LNG terminal through some other model. Public private partnership seems to be the best way. Struggling PAKRI

August 28, 2014

BR Research

Bad times are not yet over for Pakistan Reinsurance (KSE: PAKRI)! The financial result announced by the company yesterday showed a 15 percent year-on-year slump in 1H CY14 profitability. But with the treaty business on the mend, the company seems to be on the roads to recovery.

Treaty business-–which comprises the core reinsurance operations-–contributed nearly 65 percent to PAKRI’s aggregate premiums, thus governing PAKRI’s profitability. In 1H CY14, the firm’s treaty segment landed in green, posting an underwriting profit of Rs92 million, after accounting for the massive loss of Rs139 million in the quarter ended March 2014. Thanks to the treaty returns from insurance companies, PAKRI’s underwriting results recovered in 1H CY14!

Unlike the quarter ended March 2014 where underwriting result experienced a downturn, recuperating treaty returns led the aggregate underwriting profits to climb up by 22 percent year on year in 1H CY14.

While net premiums grew by a decent eight percent, the company successfully kept a check on its claims expenses. Consequently, claims ratio (net premiums to net claims) stood at the same level of 49 percent as witnessed in the corresponding period of last year. Moreover, commissions inched down a tad, bringing the combined ratio down by 200 basis points in 1H CY14. But, the gains were not sufficient to offset the slippages. The shrinking investment income and burgeoning exchange losses kept a lid on PAKRI’s bottom line in 1H CY14. Investment income dwindled by 13 percent, taking the investments ratio down to 16 percent (1H CY13: 20 percent). Besides, the re-insurer booked exchange losses worth Rs82 million as opposed to a gain of Rs18 million in 1H CY13. PAKRI’s investment managers are playing it safe by allocating over 90 percent of the portfolio to government securities and mutual funds, while limiting equity exposure to eight percent. Reconsidering the investment mix by lifting equity exposure to at least 20 percent in high-dividend scrips can help backstop future profitability.

======Pakistan Reinsurance Company Ltd. ======Rs (mn) 1HCY14 1HCY13 Chg

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PLP NEWS ALERTS EMAIL No. 196-2014 ======Net premium 2,342 2,178 8% Net claims (1,137) (1,066) 7% Other expenses (283) (262) 8% Net commission (456) (467) -2% Underwriting results 466 383 22% Investment income 378 436 -13% Rental income 26 24 8% Exchange gain/(loss) (82) 18 -556% General & admin Expenses (16) (20) -20% Profit before tax 773 842 -8% Taxation (268) (246) 9% Profit after tax 505 596 -15% EPS - Rs 1.69 1.99 - ======UPFL delights

August 28, 2014

BR Research

Good times keep rolling roll for the packaged foods industry. Earlier this week, Nestle Pakistan amazed its shareholders with a 33 percent bottom line boost for 1H CY14. Now it’s Unilever Pakistan Foods Ltd’s (KSE: UPFL) turn to charm. The company’s half-yearly financials sent to the KSE yesterday show that UPFL has achieved profit margins that are superior to its closest competitors (Nestle and Engro Foods), on the back of comparatively better margin accretions over previous year.

The 18.5 percent top line expansion shows that the firm’s Knorr and Rafhan product lines have been aggressive in their sales pitch this summer. These two established lines provide UPFL with brands that have kept in touch with the taste buds over the years. If the spicy Knorr ketchups, sauces and masalas heat things up, cool down with Rafhan jellies and pudding. And in simmering heat, there’s always that chilled glass of Energile or Glaxose D, which UPFL positions as energy drinks, to the rescue.

The role of Unilever Food Solutions (UFS)-–an in-house department where teams of professionals work with outside chefs and restaurants to innovate recipes and menus-–is also important in delivering this top line growth. As the eating-out lifestyle is on the rise, UFS seems ideally-positioned to leverage its relationship with dining establishments to deliver volumetric growth for UPFL brands, especially Knorr.

Higher sales were remarkably accompanied by cost savings. In 1H CY14, cost of sales consumed 55.4 percent of sales, a good 264 basis points lower than 1H CY13. This gain eventually translated into a decent year on year improvement in pre-tax margin to 21.4 percent, despite the fact that operating expenditures-–here, a summation of distribution, administration, and other operating expenses-–used up more revenues (23.5%) compared to last year (22.8%).

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PLP NEWS ALERTS EMAIL No. 196-2014 Thanks to a strong distribution push and cost efficiencies, UPFL eked out Rs150 million’s increment or 32 percent growth in net profits over the same period of last year. The company’s notice mentioned challenging factors like “inflation, fragile security and an uncertain political environment…” But, that’s an environment where all corporates have to operate in. And it is clear that UPFL has been dealing with it quite well. At current pace, expect UPFL to deliver even more attractive profit margins by year end.

======Unilever Pakistan Foods Ltd ======Rs (mn) 1HCY14 1HCY13 Chg ======Sales 4,106 3,465 18.5% Cost of sales (2,275) (2,012) 13.1% Gross margin 44.6% 42.0% - Dist., admn, & other op. expenses (965) (789) 22.2% Finance cost (21) (4) 364.0% Profit after tax 619 469 32.0% Net margin 15.1% 13.5% - EPS - Rs 100.55 76.17 32.0% ======PPL rolling with oil production

August 28, 2014

BR Research

Ever since the ongoing political crisis showed its first signs, Pakistan Petroleum Limited’s stock has been outdoing the benchmark index. This has been the case since the company’s secondary public offering in July 2014; thanks to which, the government garnered Rs15.98 billion.

Optimistic expectations about the share price at that time had a lot to do with the firm’s strong operational history and prospective, substantiated by its latest financial performance. In consonance with what has been happening in the E&P sector, PPL’s revenues were once again largely fuelled by crude oil production.

In FY14, E&P firm’s top line escalated by 17 percent year on year. Higher oil production from the two non-operated oil rich blocks-–Tal and Nashpa-–was the main factor behind the growth in revenues.

Where crude oil production volumes jumped by around 30 percent year on year in FY14, the same grew between 31 to 36 percent in 4Q FY14 alone. Higher crude oil prices due to escalation in geopolitical tension in Syria and Iraq were another boon for the company’s revenues.

On the other hand, natural gas production, once a company’s forte, continued to decline as the main gas fields continued to mature. PPL’s gas production dropped about 6-7 percent year on

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PLP NEWS ALERTS EMAIL No. 196-2014 year in FY14.

While exploration and field expenditure remained on the higher side as the E&P company declared two dry wells during the fiscal year; its share as a percentage of total sales declined from 42 percent in FY13 to 39 percent in FY14.

So, where increase in revenues propelled the firm’s earnings, further support came from improving gross margins. Overall, net earnings increased by 22.6 percent, year on year, and net margins improved by almost two basis points to 43 percent in FY14.

The firm announced a final cash dividend of Rs7.5 per share on ordinary shares in addition to interim dividend of Rs5 and Rs3 per share on ordinary shares and convertible preference shares, respectively.

That PPL would be entering FY15 with rising crude oil production would be no surprise. New discoveries, continuing flows from Tal and Nashpa, and optimistic expectations from the recent major discovery in Ghauri block near Jehlum where PPL is one of the three partners, will keep the company up and running.

======Pakistan Petroleum Limited ======Rs (mn) FY14 FY13 YoY ======Net sales 119,811 102,357 17.1% Field expenditure 32,817 30,603 7.2% Royalties 14,301 12,292 16.3% Other operating income 6,381 6,893 -7.4% Other operating expenses 4,103 3,333 23.1% Profit afte tax 51,417 41,951 22.6% EPS 26.08 21.28 22.6% Net margins 42.9% 41.0% ======BAHL: as smooth as it gets

August 28, 2014

BR Research

In times of squeezing spreads, to have a 24 percent year-on-year growth in NIM is indeed commendable. Bank Al-Habib Limited (KSE: BAHL), one of the soundest mid-tier banks, reported its 1H CY14 financial results yesterday, showing sizeable profit growth, mainly on account of a smart asset and liability mix strategy.

Like all its peers, BAHL’s asset mix is tilted towards investments and with PIBs in fashion, BAHL is most certain to have had its fair share in the second quarter. From the look of things, it appears the ADR may have slid further, as the top line growth could well be entirely investment-

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PLP NEWS ALERTS EMAIL No. 196-2014 driven. There is no stopping the bank to go lend aggressively, but hardly any need is felt, especially when deposit rationalisation is doing the trick.

BAHL proudly has the lowest infection ratio and in return, the highest coverage ratio amongst peers, which speaks volumes of its asset quality. Sufficient support was lent by the banks’ favourite son, i.e. the non-mark-up income, as dividend income and currency-related earnings escalated during the period.

The rapidly increasing administrative expense seems the only blot on an otherwise clean sheet, but the positives will be seen later. BAHL has been steadily expanding its branch and sub-branch networks which would soon start translating into top line.

The banking industry’s latest spreads are at a 9-year low, but the margins are still decent enough. There is still some way to go before the panic button is pressed. Should a good lending opportunity arise, BAHL may be the first one to pounce on, given its astonishingly low NPLs, although there appears little need for it, if the profits remain the core objective.

======Bank Al-Habib Limited ( Unconsolidated P&L) ======Rs (mn) 1HCY14 1HCY13 chg ======Markup Earned 20,598 19,209 7% Markup Expensed 11,921 12,198 -2% Net Markup Income 8,677 7,011 24% Provisioning/(Reversal) 121 254 -52% Net Markup Income after provisions 8,556 6,757 27% Non Mark-up/ Interest Income 2,049 1,810 13% Operating Revenues 10,605 8,567 24% Non Mark-up/ Interest Expenses 6,095 4,871 25% Profit Before Taxation 4,510 3,696 22% Taxation 1,570 1,263 24% Profit After Taxation 2,940 2,433 21% EPS (Rs) 2.65 2.19 ======Lafarge Cement: losing ground?

August 28, 2014

BR Research

Seemingly, the country’s only international cement manufacturer-–Lafarge Cement Pakistan Limited (KSE: LPCL)-–has left its recent acquirer, Bestway Cements (BWCL), with more work to do on the sales front. As sales for LPCL remained stagnated during the first half of the current

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PLP NEWS ALERTS EMAIL No. 196-2014 year, earnings came down sharply by almost 50 percent.

With the acquisition underway during the period, the results do not seem surprising. Despite stunted sales, there was a 10 percent year-on-year increase in cost of sales, which really impacted the ensuing margins. Then, towards the end, there was a remarkable increase in taxation that also hit LPCL’s bottom line hard.

Earnings were hit more sharply during 2Q CY14, coming down by a whopping 65 percent, even though one sees a bit more movement in sales, which increased by three percent. On the other hand, improvements were witnessed in terms of decline in ‘finance costs’ and ‘other charges’, along with an impressive increase in ‘other operating income’.

In recent years, the company had been improving on its financials, which was reflected in increased profitability and an increasingly secure position in terms of fixed assets and long-term debt. Net margins had been consistently increasing since taking a positive turn in 2012. LPCL also brought down its long-term debt substantially, while there has also been an increase in fixed assets over time. These factors had certainly made LPCL an offer to grab for some of the leading players in the sector.

But, while the acquisition of LPCL makes BWCL the largest cement player in the country, a drop in local sales could hit the company really hard. In that, cement manufacturers have had their eyes set on the Public Sector Development Programme, which has sizable allocations towards infrastructure development. The fate of the Federal Government in the current political milieu will also have implications in the realisation of these allocations.

======Lafarge Cement - key financials ======Rs (mn) 1HCY14 1HCY13 Chg ======Net sales 5,108 5,086 0.4% Cost of sales 3,628 3,294 10.1% Gross margin 29.0% 34.9% - Other operating income 132 44 201.5% Operating margin 19.9% 24.4% - Taxation 274 51 437.4% Net profit 478 865 -44.7% Net margin 9.4% 17.0% - EPS - Rs 0.34 0.66 -48.5% ======

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PLP NEWS ALERTS EMAIL No. 196-2014 Lotte and losses: No love lost!!!

August 28, 2014

BR Research

For Lotte Chemical (LOTCHEM), it’s been a downhill journey since 2010. The year so far isn’t better than the last. The company reported its first half 2014 financial results yesterday, reflecting a 56 percent increase in net losses over 1H CY14.

Sales for the six months ending June 2014 were lower by four percent year on year, whereas depressed PTA margins led to a gross loss of Rs944 million, an increase of 66 percent over the year-ago period, LOTCHEM’s gross margins stood at negative 3.8 percent in 1H CY14, as against negative 2.19 percent in the same period of last year. The drop comes despite an improvement in gross margins on quarter-on-quarter basis.

PTA producers in Asia have been suffering from tight margins as China—which was once a PTA importer—has embarked upon the journey to become a net exporter of PTA soon. With excess PTA supply, regional PTA makers, including LOTCHEM, have been in a pickle for some time.

However, as per the LOTCHEM’s director’s report at the end of last quarter, “the decline in the PTA prices was not as steep as Px prices due to improved demand from the downstream polyester sector, which led to some improvement in the PTA margins towards the end of the quarter”. That very trend is expected to have contributed to improvement in gross margins on quarter-on-quarter basis. Gross margins in the second quarter stood at negative 2.46 percent compared to negative 5.08 percent in the first quarter.

Be that as it may, however, LOTCHEM is expected to suffer from depressed margins this year and the year after, says Ibad-ur-Rehman, analyst at brokerage Elixir Securities, as China comes full throttle in the vertically integrated supply of Px, PTA and PSF.

Beyond its trading account LOTCHEM’s position was a bit better over last year. Its distribution and selling expenses were slightly higher relative to its top line, but considering that it probably went into increasing export sales, specifically freight and handling charges, its overall impact was not really damaging. A bit of saviour for the company was the exchange rate gain booked in the first quarter and the likely dividend inflow from its sister firm Lotte Powergen (Private) Limited that is expected to have been booked in the second quarter (detailed accounts not yet released).

With weak PTA demand in the country, and excess supply from PTA producers in the region, the future of LOTCHEM appears dicey. Still with all its troubles, if Ibad’s recent pre-result report on the stock is any guide, in which he valued the stock at Rs7.4, LOTCHEM offers decent upside of about 16 percent over yesterday’s close.

======LOTTE CHEMICAL

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PLP NEWS ALERTS EMAIL No. 196-2014 ======2QCY14 YoY Chg 1HFY14 YoY Chg ======Revenue 12,415 -3% 24,804 -4% Cost of Sales -12,730 -3% -25,748 -3% Gross Loss -305 34% -944 66% Gross margin -2.46% Down 70 bps -3.81% Down 160 bps Distribution and selling expenses -85 143% -108 100% Administration expenses -141 91% -224 48% Other income 465 2126% 569 85% Financial costs -123 92% -71 -34% Loss before taxation -205 -46% -785 36% Loss after taxation -147 -51% -660 56% Loss per share (Rs) 0.10 0.44 ======

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PLP NEWS ALERTS EMAIL No. 196-2014 Crime News Karachi: Police seizes counterfeit medicine factory

KARACHI: Shah Latif Town Police Station SHO, Arshad Awan on Friday claimed to have arrested three accused involved in making counterfeit medicines from National Highway.

The SHO said that the Shah Latif Town police conducted a raid on a tip-off in a closed warehouse near Lucky Textile along National Highway and seized the factory, arrested three accused, including Farooq Shah and recovered a huge quantity of counterfeit medicines.

Awan said that the accused manufactured counterfeit medicines of different multinational and national companies in the warehouse-cum-factory and distributed across the country. He said that a case had been filed under article 66/67 of Copyright Act of Pakistan on the complaints of Muhammad Qaiser, a representative of a multinational company, Sonofi Aventis. Islamabad: Gang of dacoits and female drug peddler arrested

ISLAMABAD: The Golra police have busted a five-member gang involved in dacoities and recovered two pistols from them, a police spokesperson said. On a tip-off, a team raided a hideout of gangsters and arrested five persons along with weapons.

The police recovered two 30-bore pistols along with ammunition from their possession. Meanwhile, the Margalla police arrested two others for having a bottle of wine and 80 grammes of hash. The Tarnol police team arrested a female and recovered 1 kilogramme of heroin from her possession.

Further investigation is underway from her. On the other hand, the police in its ongoing drive against the anti-social elements have arrested 11 lawbreakers besides recovering 845 grammes of charas, 20 litres of wine, three pistols of 30 bore with 11 rounds, stolen vehicle parts, and firework items from their possession.

According to sources, the Jatli police netted a man for having 500 grammes of charas. The Pir Wadhai police rounded up another accused for possessing 20 litres of wine. Meanwhile, the Sadiqabad police arrested two others and recovered stolen vehicle spare parts from them. The New Town Police arrested two others on recovery of firework items. Others accused were apprehended for having illegal weapons and drugs.

Moreover, the City Traffic Police (CTP) has arrested 141 beggars from the main city roads during the current month while two cases were registered against the beggars. Chief Traffic Officer (CTO) Shoaib Khurram Janbaz said that the city traffic police are trying hard to

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PLP NEWS ALERTS EMAIL No. 196-2014 eliminate beggars from the city roads and during its efforts; as many as 141 beggars were arrested and handed over to the district police in the current month.

He informed that the children who are caught begging are later handed over to Child Protection Bureau. He further said that two special squads comprising an assistant Sub-inspector (ASI), six constables, and a lady constable are working to nab the beggars. Directives have also been issued to the squads to register cases against the beggars and the report in this regard should be sent to the CTO office on daily basis, he said. The SSP said that efforts should be made by the police and the administration to eliminate the menace. In the past, the departments concerned were reluctant to take any action against the beggars, particularly the professional ones. Rawalpindi: 11 outlaws arrested; drugs, weapons siezed

RAWALPINDI: The Rawalpindi police on Tuesday arrested 11 outlaws and recovered drugs, weapons, and bottles of liquor from their possession.

According to the police spokesperson, the Kahuta police arrested an accused and recovered 210 grammes of charas from his possession. The Ratta Amral police arrested three others accused and recovered 26 litres of liquor and five bottles of wine from them respectively. The Naseerabad police nabbed a man and recovered five bottles of liquor from his possession. The Ratta Amral police recovered one 30-bore pistol from another accused. The New Town police recovered one pistol and three rounds from another accused arrested. The Wah Cantt police arrested a man and recovered one 30-bore pistol from him.

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PLP NEWS ALERTS EMAIL No. 196-2014 Miscellaneous News It’s party time!

By Chris Cork

The writer is editorial consultant at The Express Tribune, news junkie, bibliophile, cat lover and occasional cyclist

It would be easy to deduce from a viewing of a day’s output by most of our TV channels, that the revolution supposedly in progress was largely made up of under-thirties — and a lot of them women — all out to have a damn good time. They dance the night away to choons pumped out by a celebrity DJ, add thousands of selfies to the global pool of instant inanity and cheer to order when Che Cricketa delivers chapter the umpteenth of his revolutionary manifesto, which is very much a work under construction. Or not.

They dip in and out of history. Many of them appear to have day jobs and toddle back home after a night of hard partying to clean themselves up (the site of the revolution is an open sewer) before reporting for duty. Possibly in burger joints.

By contrast the other crowd of potential usurpers seem rather more reserved, get their dose of what the future holds delivered earlier in the day by a refugee from the Canadian welfare benefits system, and are less likely to be serving pizzas to errr…burgers when not engaged in the downfall of the state.

The frontage of the Supreme Court has been transformed into a dobhi ghat for a very public washing of assorted dirty linen, trees and shrubs trampled or turned into makeshift campfires and in a fresh development on Wednesday morning; digging graves. Whether for themselves or members of the government is unclear but they do nothing to prettify the landscape.

All this is covered by the rolling news channels which produce television of unrelenting tedium, possibly a revolutionary tactic in itself designed to bore the masses to death. When not whizzing their drones over either empty chairs or up close and personal with whoever has the mike, we are regaled with what purports to be analysis by a bunch of decrepit chancers long past their own political sell-by date. These rent-a-rants will doubtless be in receipt of a fat retainer, brought to and fro the studio in air-conditioned luxury, wound up before going on air and then left pretty much to themselves to babble for seemingly aeons before being put back in the box.

Somewhere in the mix will be anchors, most of who appear to have all the wit and sagacity of the mooring devices they are so inappropriately titled after. Well-trained parrots could do the job just as well.

There are heroes and winners of course but they get little coverage. The heroic efforts of the CDA street cleaners are worthy of a collective medal and anybody engaged in the fast-food business will be laughing all the way to the bank. Isloo hoteliers also reportedly are doing brisk business as well, so at least some will come out of this smiling.

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PLP NEWS ALERTS EMAIL No. 196-2014 And that, Dear Reader, is your revolution, Pakistan style. It comes pre-packaged, containerised if you will, and is confined to a small area in the national capital. It has induced paralysis in large parts of the country, not least in the minds of the government that appears as clueless as most of those seeking its ouster, and appears not to be contagious.

There have been scattered reports of desultory flag waving and chanting here and there but the majority of the country tries to go about its business as per usual — and mostly succeeds. There is no sense of imminent collapse nor even anything much beyond a widespread sense of entirely justified irritation. There are said to be many who tacitly support the merry bands of revolutionaries, and there has been a rattling of sabres by the conservative crowd outraged at men and women mingling freely and yes, dancing in the streets.

Beyond that I struggle to find a whiff of revolutionary fervour. Bahawalpur in some part still considers the invention of the wheel to a suspiciously revolutionary. Periodic reality checks around the country elicits more of the same. The same old, same old. Few expect much to change and most wish it would just stop. Right now. This minute.

My guess? Fudge, compromise and promises never meant to be kept will form the figleaf. All over. Until the next time.

Published in The Express Tribune, August 28th, 2014. Child labour in Myanmar

By Hilary Stauffer

Published: August 28, 2014

The writer is an international lawyer who has worked on human rights and humanitarian law projects in the US, Europe, Asia and Africa

In 2010, the military leadership that had been ruling Myanmar for decades unexpectedly signalled that it was rather more open to the idea of ‘democracy’ than previously anticipated. Since then, the world has been scrambling to determine how to best engage with the mercurial Burmese generals.

Over the last four years, changes have come at a very brisk pace: Myanmar’s most famous citizen — Nobel Laureate Aung San Suu Kyi — was released from nearly a decade of house arrest, along with scores of other political prisoners. She now sits in the Parliament, and heads a major opposition party. Several ethnic minority groups that had been engaging in long-running armed rebellions against the military have agreed to a ceasefire. Many Western countries have lifted sanctions that have been in place for over 25 years. For the first time since independence more than 60 years ago, Myanmar’s press is enjoying unprecedented (although not unlimited) freedom of expression, and foreign firms are lining up to research investment opportunities. On the surface, the overall picture is very promising.

The difficulty, as ever, comes if you scratch beneath the surface. Last week, Telenor — a telecommunications firm that is majority-owned by the Norwegian government — announced

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PLP NEWS ALERTS EMAIL No. 196-2014 that it had learnt that some of its in-county partners were using child labour. Telenor has been granted one of two licences to build a modern cellular network in Myanmar. This is desperately needed in a nation where it is estimated that only 10 per cent of citizens have mobile phones. More than just allowing people to communicate more easily, such infrastructure can also be used as the backbone of a mobile banking system, something that has become essential in many developing countries where most of the population don’t have bank accounts.

Despite the breathtaking pace of its recent advances, Myanmar remains a poor nation, with a per capita GDP of less than $900 a year. Of its approximately 60 million citizens, less than one per cent are judged to be ‘middle class’. In countries where poverty is so prevalent, child labour is often not only accepted but encouraged.

Tolerance of child labour helps create and perpetuate an environment that is ripe for abuse and exploitation; since 2011, the ILO has received 155 formal complaints against Myanmar regarding under-age recruitment, particularly the trafficking of children for forced labour. But even beyond this extreme example, child labour directly undermines a country’s path to prosperity: if children are working, they are almost certainly not in school. Even more than foreign direct investment, Myanmar needs an educated population that can help it implement all the reforms it is enthusiastically undertaking.

Telenor is a corporation headquartered in a rich, Western nation that enjoys very high domestic labour standards and has an enviable record regarding corporate social responsibility. It should be commended for undertaking ‘spot checks’ of its operations, in accordance with recommended best practices. But not all of Myanmar’s external stakeholders will be so conscientious; China accounts for 40 per cent of foreign investment in the country, and it would be idealistic in the extreme to hope that Chinese firms will be as scrupulous about the issue of child labour.

Myanmar cannot stamp out child labour overnight, but with dedicated assistance, it can make some strong inroads toward its eradication. There is much room to grow on this issue—here’s hoping that the government decides it is something worth investing in.

Published in The Express Tribune, August 28th, 2014. Varsity rankings: HEC invites feedback on revised criteria

By Our Correspondent

Published: August 28, 2014

ISLAMABAD:

The Higher Education Commission (HEC) has invited feedback from universities regarding its revised criteria for rankings.

The commission has revised the criterion to address concerns expressed by universities in the last two rankings carried out by the commission.

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PLP NEWS ALERTS EMAIL No. 196-2014 “Due consideration has been given in the revised criteria to the comments and recommendations received from the universities based on the earlier rankings,” said a statement.

The HEC, in the past, has been criticised by several universities for “unjustified” rankings and several other lacunas in the process.

The HEC had also announced to outsource the ranking to a private body for independent and transparent results to fend off the criticism or allegations of bias.

“The commission has also conducted a thorough review of the ranking process to enhance transparency in the future rankings. The rankings provide one of the mechanisms for the assessment of quality of teaching and research in the country and ensure the enhancement of quality of higher education through healthy competition between universities,” the statement reads.

The ranking criteria have been developed keeping in view the needs of higher education in Pakistan and are based on several factors including adherence to quality assurance in the appointment of faculty members, faculty development, student intake, quality of MS/MPhil and PhD programmes.

HEC Chairman Dr Mukhtar Ahmed said the criteria for the next ranking will be finalised based on the feedback received from the universities.

“Feedback from universities is important to ensure that the rankings are more meaningful and useful for all stakeholders.

It should truly reflect the quality of teaching and research in Pakistan’s institutions of higher learning,” said the chairman.

Published in The Express Tribune, August 28th, 2014. Harassment charges: Probe body exonerates QAU professor

By Riazul Haq

Published: August 28, 2014

ISLAMABAD:

The harassment probe committee of Quaid-i-Azam University (QAU) has exonerated a professor accused of sexual harassment by a female student.

The committee “respectfully” absolved the professor as the student’s allegations were unsubstantiated by the evidence presented before the committee.

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PLP NEWS ALERTS EMAIL No. 196-2014 In June this year, accusations were leveled against Ajmal Waheed, in-charge of the Quaid-i- Azam School of Management Sciences.

A three-member probe committee was immediately formed to look into the accusations and the case was referred to the inquiry committee that was already probing another harassment case.

Interestingly, the earlier committee which was officially functioning under the 2010 harassment law resigned when its recommendations to terminate a professor who was found guilty of sexual harassment were ignored by the varsity high-ups.

QAU vice-chancellor said the teacher has been exonerated and nothing has been decided against the student who accused the teacher for the alleged crime which she could not prove.

A disciplinary committee had already made a case against that student for using unfair means in examinations. That committee also decided against the student and directed she repeat the semester—the minimum punishment a student is awarded for cheating. The body is also probing the harassment case against another teacher of the anthropology department.

Legal lacuna

Meanwhile, questions have been raised about the legality and applicability of the Protection of Women against Harassment at the Workplace Act, 2010. Earlier this year, Pakistan Peoples Party Senator Farhatullah Babar submitted an amendment in Parliament to explicitly bring colleges and universities under the purview of the act. For educational institutions, implementation of the law does not seem to be a priority.

In 2013, the QAU syndicate removed the controller examinations on the recommendations of the inquiry committee but he was later restored when former president Asif Ali Zardari, who was also the chancellor of the university, overturned the punishment.

The official approached the president and argued that the law under which he had been removed was not applicable to the university since the educational institution did not fall under the category of workplaces.

The presidency first consulted the Ministry of Law, which termed the act “incomplete and faulty” and set the case aside. The QAU is reviewing two cases of sexual harassment but following the letter from the presidency the cases are being investigated under the Efficiency and Discipline Rules, 1973.

Published in The Express Tribune, August 28th, 2014.

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PLP NEWS ALERTS EMAIL No. 196-2014 Peace and justice: Students participate in global cartoon competition

By News Desk

Published: August 28, 2014

The Kingdom of Netherlands in collaboration with Sir Syed Institute of Leadership on Wednesday invited students to participate in a cartoon competition on the theme of ‘peace and justice’ by organising a lecture and demonstration in cartooning by Nigar Nazar, the creator of Gogi, at Sir Syed Auditorium.

According to a press release, the kingdom has always been a strong advocate for peace and justice–especially the peaceful settlement of international disputes and respect for human rights and international law. The Netherlands is proud that many important international legal institutions, such as the International Court of Justice and the International Criminal Court, have their seat in The Hague.

Thus, the Embassy of Netherlands, together with World Press Photo, the city of The Hague and the Dutch Ministry of Foreign Affairs launched the ‘cartoon movement’ that will involve cartoonists, photographers and students from around the globe in a worldwide debate about peace and justice.

Netherlands Ambassador Marcel de Vink told students that each individual has a responsibility to make the world a safer and more just place.

“You, the students of today, are the ambassadors of tomorrow and are not only representatives of Pakistan but also global citizens. This competition is for you to raise your voice and share your feelings on peace and justice at an international platform.”

Nazar demonstrated during the event how a cartoon is developed and how political and social messages can be expressed through creativity, humour and cartoons.

At the end of the project, the ten best cartoons will be selected by an international jury and will be displayed at the Peace Palace in The Hague in the week starting from September 21, the International Day of Peace.

Published in The Express Tribune, August 28th, 2014.

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PLP NEWS ALERTS EMAIL No. 196-2014 PEACEFUL COEXISTENCE: IIUI president’s book published

By News Desk

Published: August 28, 2014

International Islamic University Islamabad (IIUI) President Dr Ahmed Yousif Al-Draiweesh’s book titled “Peaceful coexistence with non-Muslims” has been published by the Islamic Research Institute of the university. The 114-page book has been translated from Arabic to English by Dr Inamul Haq Ghazi, in-charge of the department of translation and interpretation of the varsity. The book covers freedom of faith, equality, economic justice and propaganda against Islam.

Published in The Express Tribune, August 28th, 2014. Electoral reform

By Letter

Published: August 28, 2014

ISLAMABAD: Different countries have adopted the electronic voting system, with Australia, Belgium, Brazil, Canada, Finland, India, Italy and Kazakhstan being some of the examples.

It is time that Pakistan also took serious steps towards the adoption of this system.The electronic voting machine has now replaced the traditional mechanism of voting in several countries of the world because it has many advantages as it provides security and automatic counting. It can also make the voting process free and fair.

Electoral reforms with adaptation of electronic voting system may prevent future crisis regarding rigging in elections. Electoral reform would be much effective this way. If an electronic voting system is introduced, it will be easier for all political parties to accept election results, as the chances of rigging and other mistakes occurring will be minimised.

After the general elections of 2013, some evidence emerged and was reported on TV channels such as videos and pictures that were circulated specially over social media.

As for the present crisis on Constitution Avenue in Islamabad, the more it prolongs the more it gets complicated. The authorities concerned need to negotiate to resolve the issue and bring changes into the system for the betterment of the people.

Naushaba Abid

Published in The Express Tribune, August 28th, 2014.

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PLP NEWS ALERTS EMAIL No. 196-2014 Modi’s first major mistake

By Letter

Published: August 28, 2014

SURBITON, UK: This is with reference to Aakar Patel’s article, published on August 24, titled “Modi’s first major mistake” especially where he says “This means that he has to sacrifice the other aspects of our relationship, meaning trade and transit and such things, which are all part of the larger dialogue with Pakistan”.

To this I would say that India’s annual exports are $314.4 billion which is about 12.5 times higher than Pakistan’s annual exports of $25.2 billion. India’s annual imports are around $450 billion, approximately 11 times that of Pakistan which are $41.7 billion. India’s population is about six and a half times that of Pakistan and India’s economy is about nine times the size that of Pakistan.

Hence, the quantum of India’s prospective trade with Pakistan can be from zero to insignificant. Regarding transit to the Central Asian Republics (CARs), with the upcoming Iranian Port of Chabahar, India’s trade with the CARs will be a loss for Pakistan.

One would ideally want India-Pakistan trade and transit to foster and grow but with the Pakistani military calling the shots on this one, it becomes difficult to see any realistic chance of this happening any time soon.

One can criticise Modi as much as he wants but the man is obviously taking actions which are accepted by the majority of Indians who have elected him to power. As such, the writer should cut Modi some slack and give him a year or two.

Capt. (retd) Naresh K Wadhera

Published in The Express Tribune, August 28th, 2014. Redressal: IESCO sets up one-window operation centres

Published: August 28, 2014

ISLAMABAD:

The chief executive officer of the Islamabad Electric Supply Company (Iesco) has said they have established one-window operation centres in its region to address and redress customer complaints to avoid any difficulty to power users.

Strict action will be taken against officials in case of any negligence regarding complaints, said a press release issued on Wednesday.

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PLP NEWS ALERTS EMAIL No. 196-2014 The centres have been established at all customer services offices, subdivisions and circles so correction of electricity bills and any other compliant could be redressed.

The Iesco chief has directed officials to redress complaints in a good manner.

In case of any compliant unattended by officials people should contact Riaz Qadeer Bukhari,

additional director-general customer services, at 0331-5210365 and 051-9252915 and Waheed Akram, manager customer services and marketing, at 0331-5210351.

Published in The Express Tribune, August 28th, 2014.

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PLP NEWS ALERTS EMAIL No. 196-2014

OPEN MARKET FOREX RATES Updated at: 28/8/2014 6:49 AM (PST) Currency Buying Selling Australian Dollar 93.35 93.6 Bahrain Dinar 269 269.25 Canadian Dollar 91.75 92 China Yuan 16.35 16.5 Danish Krone 18 18.15 Euro 132.5 132.75 Hong Kong Dollar 12.95 13.1 Indian Rupee 1.67 1.69 Japanese Yen 0.97 0.98 Kuwaiti Dinar 357 357.25 Malaysian Ringgit 32 32.25 NewZealand $ 84.75 85 Norwegians Krone 16.25 16.4 Omani Riyal 264 264.25 Qatari Riyal 27.85 28.1 Saudi Riyal 26.75 27 Singapore Dollar 80 80.25 Swedish Korona 14.45 14.6 Swiss Franc 110.5 110.75 Thai Bhat 3.17 3.19 U.A.E Dirham 27.7 27.95 UK Pound Sterling 166.25 166.5 US Dollar 101.25 101.5

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PLP NEWS ALERTS EMAIL No. 196-2014

INTER BANK RATES Updated at: 28/8/2014 6:49 AM (PST) Bank Buying Bank Selling Currency TT Clean TT & OD Australian Dollar 93.92 94.1

Canadian Dollar 92.31 92.49

Danish Krone 17.79 17.83

Euro 132.64 132.91

Hong Kong Dollar 13.01 13.03

Japanese Yen 0.9690 0.9709

Saudi Riyal 27.07 27.13

Singapore Dollar 80.72 80.88

Swedish Korona 14.49 14.51

Swiss Franc 109.82 110.04

U.A.E Dirham 27.44 27.5

UK Pound Sterling 166.85 167.18

US Dollar 100.8 101

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