News Updates

Tuesday, August 05, 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. 177-2014 NEWS HEADLINES Top Stories ...... 5 Indo-Pak trade: World Bank decides to release technical grant ...... 5 Two soldiers martyred, seven Uzbek terrorists killed...... 6 Resolution adopted: National Assembly condemns relentless Israeli aggression ...... 6 Palestinians, Israel agree on new 72-hour truce ...... 8 Power projects: Prime Minister reviews progress ...... 9 MQM MNAs stage walkout over raid ...... 10 HSBC profits fall, warns over bank risk-taking ...... 10 Portugal averts BES disaster ...... 11 Imran's demand termed 'unconstitutional': ECP won't brook government intervention ...... 13 WTO failure points to fragmented future for global trade ...... 14 THE RUPEE: bears dominate ...... 15 Significant gas reserve discovered in Gambat ...... 16 PSM fails to achieve 20 percent production target for July...... 17 Supreme Court turns down former CJP's request ...... 18 Supreme Court issues notices over PBA's plea ...... 19 Condolence reference ...... 20 Government still struggles to persuade Imran ...... 20 Zardari contacts the Chaudhry brothers ...... 21 Alam Khattak new defence secretary ...... 21 British troops could return to Afghanistan: army chief ...... 22 Equities fall to nine-month low ...... 22 LSE index drops 113.23 points ...... 23 ISE index down by 131.88 points ...... 24 BRIndex30 dips by 480.94 points ...... 24 Business and Economy: Pakistan ...... 25 Italian envoy briefed on investment opportunities ...... 25 Forex reserves fall by $110 million ...... 26 CPI inflation increases by 7.88 percent during July 2014 ...... 26 Indo-Pak trade: World Bank decides to release technical grant ...... 27 Simplified tax system, end SRO culture: PIAF-Founders Alliance's manifesto for LCCI elections ...... 28 SAI chief criticises long Eid holidays ...... 29 Paper merchants visit various Chinese trade bodies ...... 29

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PLP NEWS ALERTS EMAIL No. 177-2014 Massive financial bungling detected in NPO projects ...... 30 Abad chief says political uncertainty to affect investment...... 32 Cherat Cement to set up new plant in Nowshera ...... 33 e2e Supply Chain Management providing best services ...... 33 Activities at Karachi and Qasim ports ...... 34 New Toyota Corolla model: announcement ...... 35 Railways lacks capacity to lift coal in bulk...... 35 PSDP projects: NHA directed to ensure speedy completion ...... 36 100 years of Sahiwal DCB Conservation: PP issuing commemorative postage stamp ...... 37 Company News: Pakistan ...... 38 Flying Cement Company Limited ...... 38 Cotton and Textiles: Pakistan ...... 40 MoTI formulating five-year Textile Policy: National Assembly informed ...... 40 Unresolved issues, political uncertainty hurt textile export ...... 41 Usman joins Khaadi as general manager ...... 42 Agriculture and Allied: Pakistan ...... 43 Daily trading report of PMEX ...... 43 Mangla, Tarbela and Chashma reservoirs IRSA stores 11.55MAF water ...... 43 NFS&R to take provinces on board to restore PODB's activities ...... 44 Wheat second biggest contributor to inflation: SBP report ...... 45 Rice export to Iran may go up ...... 46 PSM fails to achieve 20 percent production target for July...... 46 Chinese company banned for supplying expired meat ...... 47 Taxation: Pakistan ...... 49 Beverage makers' premises in Karachi: IROs deputed to monitor actual production & sales ...... 49 Fuel and Energy: Pakistan ...... 50 Power projects: Prime Minister reviews progress ...... 50 Significant gas reserve discovered in Gambat ...... 50 'Unlawful' bank charges, meter rent: MoW&P seeks explanation from K-Electric ...... 51 Clarification ...... 52 Banking & Finance ...... 54 Pak forex figure $ 14.34006bn ...... 54 SBP issued fresh currency notes of Rs 154bn in Ramazan ...... 54 BR Research: All ...... 56 KSEs devilish slide ...... 56

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PLP NEWS ALERTS EMAIL No. 177-2014 Political motives keep inflation in check ...... 57 The return of the consumer ...... 58 E-trade for SMEs ...... 59 Crime Updates ...... 61 No case: Court discharges men detained under Section 144 ...... 61 Rangers arrest 12 suspects from Karachi ...... 61 17 arrested in Lahore ...... 62 Faisalabad: 2 policemen arrested for cloaking MPA’s criminal record...... 62 Rawalpindi: 5 criminals arrested; fake currency siezed ...... 62 Shahdadpur: Youth rapes a mentally disabled girl ...... 62 Rawalpindi: Police arrest 12 outlaws, recover drugs, weapons ...... 63 Rawalpindi: 17 lawbreakers, 10 gamblers arrested ...... 63 Miscellaneous News ...... 64 Islamic banking: SBP to have Islamic finance sections ...... 64 Building a case: Construction industry needs support pillars, says ABAD chairman ...... 65 Rice exports experience miniscule increase ...... 66 Moving higher: Pakistan Petroleum Limited makes another gas discovery ...... 67 One-litre containers: Not a very milky way ...... 69 Easing the strain: Banking system gets Rs18.6b liquidity injection ...... 70 Power generation: Ishaq Dar wants provinces to pay up ...... 71 OPEN MARKET FOREX RATES ...... 73 INTER BANK RATES ...... 74 Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) ...... 75 Gold Rates & Silver Rate from major cities of Pakistan ...... 76

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PLP NEWS ALERTS EMAIL No. 177-2014 Top Stories Indo-Pak trade: World Bank decides to release technical grant

August 05, 2014

MUSHTAQ GHUMMAN

The World Bank has reportedly decided to release technical assistance of $9 million (approximately Rs 900 million) to the Commerce Ministry with the objective of facilitating trade between Pakistan and India, well informed sources told Business Recorder. Earlier, USAID released about $36 million (about Rs 4 billion) to the Commerce Ministry with the objective of mobilising support in Pakistan to grant Most-Favoured Nation (MFN) status to India.

USAID reportedly hired the services of incumbent officials of Commerce Ministry and those with close links in the Ministry to conduct studies and organise seminars in support of Pak-India trade. USAID assistance was also spent on development of the Wagha border, the Torkham Post, establishment of a Trade Portal and strengthening of Trade Development Authority of Pakistan (TDAP) and National Tariff Commission (NTC). The sources said the US wants smooth transportation of Isaf supplies from the Torkham border.

The sources further revealed that one USAID consultant drawing $3000 per month practically took over the affairs of Pak-India trade affairs till the federal cabinet deferred its decision to grant Non Discriminatory Market Access (NDMA) or MFN status to India. Two other consultants getting $12000 and $5000 per month used their expertise to generate studies that were designed to convince anti-Pak-India trade sections that theirreservations were not relevant. According to sources, the World Bank has hired the services of one of these World Bank consultants who will be provided an office in the Commerce Ministry. Some of the incumbent officials of the Ministry have been given a verbal commitment that they will also be accommodated in future projects if they extend support for the grant of NDMA status to India.

The sources said World Bank's assistance will be spent on further development of Wagha facilities which were substantially developed by the USAID. Some of the assistance will be used for strengthening of Pakistan Institute of Trade and Development (PITAD), a think tank of Commerce Ministry, which had proposed that Pakistan should link grant of NDMA status to India with the resolution of other bilateral political issues.

The sources said trade liberalisation talks between Pakistan and India are stalled as Indian Minister of State for Commerce and Industry did not attend the SAFTA ministerial conference recently held in Bhutan. Pakistan was represented by Commerce Minister, Engineer Khurram Dastgir. Dastigir had planned to have a detailed meeting with the Indian Commerce Minister with a view to removing confusion on the demand of Indian Foreign Secretary's statement that India will implement the understanding reached in December 2012 and not March 2014. The minister had also decided to hold talks on some other trade-related issue.

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PLP NEWS ALERTS EMAIL No. 177-2014 Copyright Business Recorder, 2014 Two soldiers martyred, seven Uzbek terrorists killed

August 05, 2014

Two soldiers of the Pakistan Army embraced martyrdom in an ambush while seven Uzbek terrorists were killed during operation Zarb-e-Azb in North Waziristan Agency on Monday. According to ISPR, two soldiers Naib Subedar Mashkoor and Lance Naik Zaheer embraced "Shahadat" while seven Ubzek terrorists were killed during military operation on Monday.

A press release on Monday said operation Zarb-e-Azb continues to achieve its objectives and is progressing well. Towns of Miranshah, Mirali, Boya, Degan, and area up till Dattakhel have been cleared. During clearance of surrounding areas of Mirali in Shahbaz Khel, 75 rockets, large number of IEDs and suicide jackets were also recovered on Monday. One more IED factory was discovered in Umer Ki Kalli, located in the outskirts of Mirali. During search and clearance, huge quantity of IEDs, chemicals and propaganda literature were recovered.

August 05, 2014

NAVEED BUTT & ZAHEER ABBASI

The National Assembly on Monday unanimously passed a resolution on relentless Israeli aggression on the Gazan Palestinians and called upon the Organisation of Islamic Co-operation (OIC) to convene an emergency session with a view to taking an effective action to end Israeli brutalities. The resolution moved by Advisor to Prime Minister on Foreign Affairs and National Security Sartaj Aziz.

According to the Resolution, "this House unanimously condemns, in the strongest possible terms, the brutal Israeli strikes against the Palestinian people of Gaza and those abetting this genocide." The resolution further says: "This House expresses deep concern at the brazen and blatant violation by Israel of Security Council resolutions, which calls for immediate suspension of Israeli activities and warned of serious consequences for the region, including likely exacerbation of existing tensions, violence and despair, undermining any chances of achieving durable peace.

"The House expresses its heartfelt sympathy for the Palestinian people and an unequivocal support to their cause. It welcomes the adoption of a resolution by the emergency session of the UN Human Rights Council, launching an independent inquiry into the gross violations of BACK TO HEADLINES Page 6

PLP NEWS ALERTS EMAIL No. 177-2014 humanitarian and human rights laws in Gaza by Israel. It calls upon the Organisation of Islamic Co-operation (OIC) to convene an Emergency Session to take an effective action to stop Israeli brutalities against innocent civilians forthwith. It also calls upon UN Security Council to take appropriate action on this issue.

"This House also calls upon the international community to: (1) Negotiate an immediate and unconditional cease-fire in Gaza; (2) Require Israel to completely halt its air, ground and naval offensive, remove its forces from the area, and its blockade of Gaza; (3) Ensure the immediate resumption of negotiations for achieving a comprehensive peace agreement, providing inter-alia for establishment of a viable, geographically contiguous Palestinian state, based on pre-1967 borders, with Al-Quds Al-Sharif as its Capital; and (4) Compensate for the destruction of the entire infrastructure of Gaza.

"This House appreciates the action of the Government of Pakistan to: (a) Donate US $1 million (Rupees 100 million) to UNRWA for providing material support especially food and medicine to the Palestinian people. (b) Observe 25th July, 2014 as a national day of mourning and protest.

"It calls upon the Muslim Ummah to focus, in parallel with political initiatives already taken, on direct and tangible support for the affected persons, by providing a substantial financial assistance to alleviate their immense suffering and meet their growing humanitarian needs." Earlier, while giving policy statement on the floor of the House, Advisor to Prime Minister on Foreign Affairs and National Security Sartaj Aziz said that Prime Minister Nawaz Sahrif has announced Rs 100 million for food and medicine for the people of Gaza on the appeal of United Nations (UN).

He said the government will try its level best that the Israeli aggression should be strongly condemned; steps must be taken to cease-fire forthwith; war victims to be immediately helped; a sustainable solution should be found for resolving the Palestine issue permanently through negotiations.

Leader of Opposition in the National Assembly Syed Khursheed Ahmed Shah also condemned the attacks of Israel against the Palestinian people and said that the PPP always raised the voice for their rights. While speaking on the resolution, Maulana Fazlur Rehman condemned the brutal Israeli attacks against the Palestinian people of Gaza and urged Pakistan Muslim League-Nawaz (PML-N) government to make diplomatic efforts to stop this brutality.

He said that on this occasion all Muslim countries should unite at one platform and take a stance against the action of brutality of Israel. He said that a meeting of the OIC should be called immediately to address the issue of the people of Palestine. Sahebzada Tariqullah of Jamaat-i- Islami (JI) said all the Muslim countries should raise their voice against the brutalities of Israel at international forum. He said the government should take an initiative to stop the Israeli aggression. He said a session of OIC should be summoned immediately to take solid action against Israel.

Ghulam Sarwar of Pakistan Tehreek-e-Insaf (PTI) condemned the attacks of Israel and said that there is a need to make OIC's role effective. At the outset of the session of the Lower House, opposition parties wanted to discuss enforcement of Article 245 in the federal capital and threatened to boycott the proceedings. A debate on the question whether there should be a discussion on Article 245 after adoption of a strong resolution on Gaza issue consumed two

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PLP NEWS ALERTS EMAIL No. 177-2014 hours of the house.

Opposition leader Shah said that "we will not sit in the House till a discussion on Article 245 is started". He asked the ruling party to first adopt a strongly-worded resolution unanimously to express solidarity with the people of Palestine and the Israeli aggression and then immediately start a discussion on Article 245. He insisted that National Assembly must hold discussion on Article 245 on Monday instead of Wednesday as was decided by the House Business Advisory Committee. Shah said that the Prime Minister should have taken up the Palestine issue with the Saudi King during his 10-day stay in Saudi Arabia. Pakistan Tahreek-e-Insaf members National Assembly also wanted a discussion on Article 245 on Monday after approval of a resolution on Gaza issue. Sheikh Rahid Ahmed of Awami Muslim League boycotted the proceedings for not taking up the Article 245. Mehmood Khan Achakzai of Pakhtunkhwa Milli Awami Party said the House should adopt a resolution for defending Parliament and Constitution. Sahebzada Tariqullah of Jamaat-i-Islami said the House should initiate a debate on the Gaza issue. Rashid Godil of MQM was also for a discussion on the Gaza issue.

August 05, 2014

Israel and the Palestinians have agreed a new 72-hour truce starting on Tuesday, Egypt said, after increasingly vocal world demands for a cease-fire in the bloody Gaza conflict. The apparent breakthrough came during talks in Cairo only days after a similar three-day truce collapsed in a deadly wave of violence within hours starting on Friday.

Images of the bloodshed, which has cost more than 1,800 Palestinian lives and 67 in Israel, have sent tensions in the region soaring, earning the Jewish state strong criticism. "How many more deaths will it take to stop what must be called the carnage in Gaza?" French Foreign Minister Laurent Fabius asked, as Britain said it was reviewing licences to sell arms to Israel. But Prime Minister Benjamin Netanyahu said there would be no end without first securing a long-term period of calm for his people. "The campaign in Gaza is continuing," he said at the end of a seven-hour humanitarian lull that saw violence subside. "This operation will only end when quiet and security is established for the citizens of Israel for a prolonged period."

Violence even hit Jerusalem, with police saying they had foiled a "terror attack" when a Palestinian rammed an earthmover into a bus, killing one before being shot dead himself. But after the unilateral Israeli truce ended on Monday, Palestinian factions meeting in Cairo, including Hamas, were already working on another more durable cease-fire. A senior Egyptian official said both the Israeli and Palestinian sides had accepted an Egyptian plan for a new 72- hour truce starting on Tuesday morning. "Egypt's contacts with relevant parties have achieved a commitment for a 72-hour truce in Gaza starting from 0500 GMT tomorrow morning, and an agreement for the rest of the relevant delegations to come to Cairo to conduct further negotiations," the official told AFP.

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PLP NEWS ALERTS EMAIL No. 177-2014 Egypt said that Israel had privately committed to the plan but had yet to make its own public announcement and send negotiators to Cairo. Azzam al-Ahmed, head of the Palestinian delegation, confirmed his side accepted the new truce. On the ground in Gaza, Israeli forces had largely observed a unilateral seven-hour truce from 0700 GMT. The humanitarian window got off to a shaky start with an air strike levelling a house in a beachfront refugee camp in Gaza City, killing three people, among them a nine-year-old girl.

"There is no truce. How could there be a truce," raged Ayman Mahmud, who lives in the neighbourhood. "They are liars! They don't even respect their own commitments!" Hamas did not observe the truce, firing 42 rockets over the border during the pause, 24 of which hit Israel and another one which was shot down, the army said.

August 05, 2014

Prime Minister Nawaz Sharif on Monday chaired a meeting to review the progress on Pakistan- China Joint Commission's energy projects, including early harvest projects. The meeting was attended by Khawaja Muhammad Asif, Minister for Water & Power, Ishaq Dar, Minister for Finance, Ahsan Iqbal, Minister for Planning, Khawaja Saad Rafique, Minister for Railways, Shahbaz Sharif, Chief Minister Punjab, Tariq Fatemi, Special Assistant to PM, Dr Musadik Malik, Special Assistant to PM and others.

Prime Minister directed to expedite the up-gradation of country's electricity transmission and distribution system so that additional power generated from ongoing and new projects is smoothly distributed while line losses are contained. "No laxity would be tolerated on the part of project teams working on up-gradation of power transmission and distribution system. We aim at providing affordable electricity to the masses," said the Prime Minister. He further said that he would personally monitor progress of energy projects.

He said: "We are focused on resolving problems of the country and we are on right track and by the grace of Almighty we will be able to solve issues confronting Pakistan. Those who are involved in negative politics want to create problems for Pakistan rather than solving them," the Prime Minister added.-PR

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PLP NEWS ALERTS EMAIL No. 177-2014 MQM MNAs stage walkout over raid

August 05, 2014

ZAHEER ABBASI

Muttahida Qaumi Movement's (MQM) members of the National Assembly on Monday staged a protest walkout from the House against the Rangers' raid in the area of MQM leader Dr Farooq Sattar and arrest of two persons from there. Speaking on a point of order, MQM MNA Rashid Godil said: "At 3:00am on Monday some 80 to 90 Rangers personnel came in different vehicles and surrounded the locality wherein Dr Farooq Sattar is residing. They conducted search operation and arrested two innocent children who were implicated in criminal cases."

He added that all this was being done because MQM had raised the issue of water. He demanded immediate arrest of those involved in the raid and announced to walk out of the House in protest against the incident. Minority member Lal Chand drew attention of the House towards killing of Hindus in Sindh, saying that two of his relatives were killed brutally on July 31 and police was not co-operating with the victims' family.

The incident, he added, took place in Umar Kot town. He said that minorities were feeling insecure in the province due to increasing incidents of kidnapping for ransom. PTI MNA Shireen Mazari complained that she had received threats of house arrest over phone. She claimed that PTI workers across the country were also receiving similar threatening phone calls.

Speaking on a point of order, MQM member Asif Hasnain said that the prevailing circumstances indicated the situation was getting out of government's control and the country was heading towards anarchy. He said that invoking Article 245 and passage of Pakistan Protection Ordinance were indications of government's weakness. Prime Minister's Advisor on Foreign Affairs Sartaj Aziz told the house that Pakistan Embassy in Libya was making efforts to get the stranded Pakistanis out of Libya through Tunis and Turkey. He added that the government was also in touch with Iranian authorities for the release of Pakistanis languishing in various jails there.

August 05, 2014

Banking giant HSBC said on Monday that profits fell in the first half because one-off gains were not repeated and after a weaker showing at its investment arm. The Asia-focused lender meanwhile warned over the dangers of "risk aversion" by its bankers in the wake of industry- wide scandals. Net profit dropped five percent to $9.746 billion (7.259 billion euros) in the six months to June 30 compared with $10.284 billion in the first half of 2013, the British bank said in a statement.

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PLP NEWS ALERTS EMAIL No. 177-2014 Reported profit before tax dropped to $12.3 billion as last year's first half benefited from higher gains from disposals and reclassification of HSBC's interest in China's Industrial Bank. Pre-tax profit at HSBC's investment division dropped 12 percent to $5.0 billion in the first half. HSBC chief executive Stuart Gulliver said that the bank's overall interim results "demonstrate the resilience" of its business model.

"Whilst regulatory uncertainty persists, our balance sheet remains strong and our continuing ability to generate capital supports both growth and our progressive dividend policy," he added in the statement. The lender is pushing on with its savings programme, having announced last year plans to cut costs by up to a further $3.0 billion by 2016. HSBC chairman Douglas Flint meanwhile used Monday's results statement to draw attention to another challenge - risk-taking by its bankers amid regulatory clampdowns and record fines for the sector.

"Greater focus on conduct and financial crime risks at all levels of the firm globally is clearly the right response to past shortcomings," said Flint. "There is, however, an observable and growing danger of disproportionate risk aversion creeping into decision-making in our businesses as individuals... seek to protect themselves and the firm from future censure." A month ago, French bank BNP Paribas pleaded guilty to US criminal charges of violating sanctions on Iran and Sudan for eight years and was fined a record $8.9 billion.

Banks have also been hit by billions of dollars of fines over rate-rigging scandals and a slew of new regulations after the onslaught of the global financial crisis revealed the scale of recklessness in global financial markets. HSBC said on Monday that its underlying revenue fell 4.0 percent to $31.36 billion in the first half, while operating expenses rose 2.0 percent to $18.24 billion.

"Against a backdrop of continuing low interest rates and reduced financial market volumes, HSBC produced a suitably well-balanced financial performance," said Flint. "At a time of residual concerns over the sustainability of economic growth in many major markets and with heightened geopolitical tensions apparent, the board supported management's view that this was not the time to expand risk appetite to offset the effect of lower revenues," he added.

August 05, 2014

Portugal narrowly averted a national disaster and a fresh eurozone crisis on Monday by launching a new bank as part of a rescue totalling nearly 5.0 billion euros for Banco Espirito Santo. Wielding new EU rules to shield taxpayers and governments from near-bankrupt banks, Portugal and the European Union moved fast to pre-empt a collapse of confidence when markets and banks opened for business.

The bank was in dire straits after reporting a record loss last week on top of insolvency for its three holding companies amid allegations of accounting fraud. Its share price plunged and trading was suspended. The rescue, announced late on Sunday, immediately pushed down Portugal's critically important borrowing rates on the eurozone debt market where the country

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PLP NEWS ALERTS EMAIL No. 177-2014 has only just won back fragile credibility after exiting a three-year international aid programme. The European Commission lost no time in clearing the rescue as meeting EU competition rules and said it would "restore confidence in financial stability" and avoid the risk of "systemic effects".

The incoming head of the Commission, Jean-Claude Juncker, said in Athens that the situation in Portugal remained "fragile," adding that "we must remain vigilant... Across Europe, we could be affected by things which we cannot predict". Banco Espirito Santo is the third-biggest bank in Portugal, playing a role across the economy with major interests in insurance, property, tourism and the health sector.

The rescue helped push up prices on European stock markets where investors had been worried about possible knock-on effects if the bank crashed. Portugal emerged from a three-year bailout by the International Monetary Fund and EU only in May, and was winning praise as a success story for reforms imposed by the eurozone in the midst of its debt crisis. The BES crisis put this new-found confidence in jeopardy. Under the rescue, new entity Novo Banco will be given 4.9 billion euros ($6.6 billion) of capital, while Banco Espirito Santo (BES) is left holding its bad assets. BES will be closed down, the Commission said, with shareholders and all second-line creditors carrying much of the cost.

Announcing the rescue late on Sunday, Portugal's central bank governor Carlos Costa said that "nothing changes for the (bank's) customers" because from Monday BES "will become Novo Banco, even if branches at first keep the old logos". He said: "There was an urgent need to adopt a solution to guarantee the protection of deposits and assure the stability of the banking system." Fitch Ratings said Lisbon's rescue of the bank seems to have contained the crisis and would have little immediate impact on the health of the Portuguese economy.

"But the establishment of Novo Banco will significantly reduce the cash buffer set aside for Portuguese banks to around two billion euros," the agency said in a note, adding that any spillover effect "may depend on investor perceptions of the health of the banking sector."

Natixis bank economist Alan Lemangnen said the spreading of risk under the rescue plan was "positive" for all sides. "There is a real sharing of the costs between shareholders and holders of subordinated debt on one hand, and the state which is drawing on part of its reserves to recapitalise the new bank," he said. The emergency rescue procedure is in line with new EU policies in the light of the eurozone debt crisis.

These are intended to prevent a failing bank from spreading crisis through the financial system, pushing up borrowing rates for governments and throwing the eurozone back into turmoil. Last week Banco Espirito Santo reported a first-half loss of 3.57 billion euros - the worst ever reported in Portugal. The Portuguese state will provide 4.4 billion euros of the rescue from funds under a national bailout programme from which the country emerged only in May. Another 500 million euros will come from a Resolution Fund set up by Portugal's banks as part of the conditions for the 2012 national bailout by the IMF, the EU and the European Central Bank.

This fund will control Novo Banco and will have to repay the state by selling the new bank. BES was brought down largely by suspected improper accounting practices in the Espirito Santo Group built around three holding companies. French banking group Credit Agricole, a leading

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PLP NEWS ALERTS EMAIL No. 177-2014 BES shareholder with a 14.6 percent stake, is to report results on Tuesday, which may reveal the extent of the damage it has suffered.

August 05, 2014

WASIM IQBAL

Election Commission of Pakistan (ECP) has termed the demand of Pakistan Tehreek-e-Insaf Chief Imran Khan 'unconstitutional' as federal government has no authority to intervene in the matters that are in the jurisdiction of general election.

In a press briefing on Monday, Director General Elections, Sher Afghan, said that the commission will not accept any of the federal government's directives, as it could not intervene in election-related disputes under the Constitution. He said that ECP is an independent body as far as election matters are concerned.

He further explained, the commission has no authority to give any kind of directives or advice to election tribunals in resolving election-related disputes. "We granted an additional 6 months to take decisions on rest of the election cases on the expiry of 120 days earmarked for resolving election disputes," he said. He continued that Imran Khan's criticism is in violation of Article 225 of the Constitution which deals with election disputes.

Replying to a question, he said Pakistan Tehreek-e-Insaf could not file an election petition in Supreme Court of Pakistan as it has been under process in election tribunals. Article 225 of the constitution limits the jurisdiction of any court of law against the legal powers of election tribunals, Dr Afghan maintained.

Replying to another question related to Tehreek-e-Insaf, he said the apex court has four jurisdictions- advisory, review, appellant and principle jurisdiction under Article 184 and 191 respectively. "We don't know in which jurisdiction his petition is filed, as even SC could not give any directive when the PTI's petitions against the results of four constituencies are still pending with election tribunals," he added.

"Our mandate is to hold general elections in the country. In case of pre-mature dissolution of Assemblies, election will be held in 90 days and 60 days are required if assemblies fulfil their constitutional period," he explained. The ECP is working on a legal bill seeking additional powers for holding free and fair elections in the country. "The working on the amended bill will be completed in one and half months and subsequently it would be sent to Ministry of Law and Justice for vetting," he added.

He further said that a campaign has been going on in the media to create a wrong impression that the magnetised ink recommended by Nadra was neither manufactured by PCSIR nor delivered

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PLP NEWS ALERTS EMAIL No. 177-2014 by the ECP to the Returning Officers. The ECP had on many occasions dispelled this impression. "It is made clear once again that the Election Commission was responsible for the delivery of the magnetised ink prepared by PCSIR in accordance with the specifications recommended by Nadra and it fulfilled its obligations. Further actions thereafter were the responsibility of the Returning Officers and Presiding Officers," he concluded.

August 05, 2014

India has dealt a potentially fatal blow to the World Trade Organization's hopes of modernising the rules of global commerce and remaining the central forum for multilateral trade deals. In the short term, this is a setback for freer commerce. In the longer run, it means trade liberalisation may advance - if at all - among narrower groups of countries, denying dissenters a chance to block progress.

While the unwieldy 160-member, Geneva-based WTO will survive as a body for enforcing existing multilateral agreements, smaller clubs of like-minded nations are trying to move ahead faster to update the trade rules among themselves. "Without a serious shake-up, the WTO's future looks like that of the League of Nations," said Simon Evenett, a professor at the Swiss Institute for International Economics. "Perhaps ultimately that's what some governments want."

Last week India vetoed the adoption of a treaty to simplify, standardise and streamline the rules for shipping goods across borders, having previously agreed to its terms at a ministerial conference in Bali last December. It blocked the text because it wanted more attention paid to its concerns over food security.

After drawing widespread condemnation, the world's second most populous nation now says it wants to keep the treaty alive, with stronger assurances about protecting its food security needs, until a permanent solution is found. But the genie is out of the bottle. India's tactics reawakened a ghost from the WTO's past that many diplomats hoped to have put behind them: the idea of "linkages".

Linking unconnected negotiations was a major reason why the Doha round of trade talks that began in 2001 collapsed. As more and more states parlayed a concession here into a pledge there, the weight of interwoven bargains eventually caused paralysis. The draft treaty on customs rules, known as "trade facilitation", was supposed to be something that everyone could agree on - "low hanging fruit" that might reinvigorate a WTO laid low by a grinding decade of failed negotiations.

But there were few illusions about the WTO's overall health. "The Doha Round has been dead at least since the last big push in 2011 failed," said Richard Baldwin, professor of international economics at the Graduate Institute in Geneva. "The Bali package was just a way of putting fresh flowers on the grave to remind people of what passed away.

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PLP NEWS ALERTS EMAIL No. 177-2014

"The big trading nations like India, the United States, the European Union, China and Brazil all went along with it since they wanted to keep the WTO looking relevant." For several years, many of the bigger economies have been pouring their energies into new clubs aiming to liberalise trade in particular regions or in specific sectors of the economy. "What WTO promoters fail to understand is that their forum competes with other vehicles for reform. Through poor design, bad luck and bad tactics, the WTO has handicapped itself in this race," said Evenett.

August 05, 2014

The rupee failed to sustain its week-end's gains against the dollar on the currency market on Monday, dealers said. The rupee shed one-paisa versus the dollar for buying at Rs 98.88 and it also fell by two-paisa for selling at Rs 98.90, they said.

INTERBANK MARKET RATES: OPEN MARKET RATES: The rupee lost 20-paisa in terms of the dollar for buying and selling at Rs 98.70 and Rs 98.90 respectively, while it did not show any change versus the euro for buying and selling at Rs 132.00 and Rs 132.25 respectively, they said.

In the first Asian trade, the US dollar got off to a quiet start, having suffered its biggest one-day fall in nearly a month after a batch of economic data led markets to temper expectations for the start of the Federal Reserve's rate-tightening cycle.

Data released on Friday showed US jobs growth slowed in July, the unemployment rate unexpectedly edged up and inflation was restrained, a mix of figures that should give the Fed room to keep interest rates low for a while yet.

The dollar was trading against the Indian rupee at Rs 60.97, the greenback was at 3.1995 versus the Malaysian ringgit and US currency was available at 6.1772 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 7.50-77.50 (previous 77.50- 77.50). Call Money Rates: 06.50-08.25 percent (previous 06.50-08.25 percent).

======Open Bid Rs.98.70 Open Offer Rs.98.90 ======Interbank Closing Rates: Interbank Closing Rates For Dollar on Monday. ======Bid Rate Rs.98.88 Offer Rate Rs.98.90 ======RUPEE IN LAHORE: The greenback appreciated its worth by five-paisa on buying side at Rs 98.70 while gained 20-paisa on selling side at Rs 99.20 in relation to Pak rupee at the currency markets of Lahore on Monday.

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PLP NEWS ALERTS EMAIL No. 177-2014

According to the currency dealers, the greenback opened at Rs 98.50 for buying and Rs 99.00 for selling against Rs 98.65 and Rs 98.90 of Saturday. In the wake of fresh buying activity, the greenback appreciated its worth and was closed at Rs 98.70 and Rs 99.20 on buying and selling counters, respectively.

On the other hand, the British pound depreciated its worth against the local currency. The British currency was purchased and sold at Rs 166.00 and Rs 167.00 as against Rs 166.50 and Rs 167.45 on Saturday.

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

The dollar opened at Rs 98.50 for buying and Rs 98.60 for selling against same last rate. It did not observe further change in the second session and closed at Rs 98.50 for buying and Rs 98.60 for selling. Pound Sterling opened at Rs 165 for buying and Rs 165.50 for selling against same last rate. It closed at the same rate without further change by the end of evening session.

August 05, 2014

ABDUL RASHEED AZAD

Pakistan Petroleum Limited (PPL) has made a significant natural gas discovery in Gambat Block located in Sindh. The gas field will produce 30 Million Cubic Feet per Day (MMCFD). Official sources in the Ministry of Petroleum and Natural Resources told Business Recorder here on Monday that this year the ministry has added over 400 MMCFD of natural gas to the system, but this addition is not sufficient to meet the local demand.

As per officials, the country's local gas production stands at around 4.2 Billion Cubic Feet per Day (BCFD) against total managed demand of 6 BCFD. To meet the increasing demand the government has initiated the import of Liquefied Natural Gas (LNG) from Qatar for which a LNG terminal is under construction at Port Qasim in Karachi which would be completed by the end of April 2015.

The ministry officials told Business Recorder on Tuesday that apart from this 100 MMCFD of gas and 4,000 barrels of crude oil, the country's oil/gas production from other fields also increased by nearly 300 MMCFD and crude oil production within last 12 months rose from 73,000 barrels per day to 102,000 barrels per day.

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PLP NEWS ALERTS EMAIL No. 177-2014 113 Million Cubic Feet per Day (MMCFD) of additional gas and 4,000 barrels of crude oil to the system produced by 21 smaller oil/gas fields from June 2013 to May 2014.

According to official data of the Petroleum Ministry, the oil/gas exploration and production companies working in the upstream sector during past 14 months drilled 78 oil/gas wells and announced 21 new discoveries, which have started producing 113 MMCFD of gas and 4,000 barrels of crude oil per day. The PPL operates six producing fields across the country at Sui (Pakistan's largest gas field), Adhi, Kandhkot, Chachar, Mazarani and Hala and holds a working interest in fifteen partner-operated producing fields, including Qadirpur the country's second largest gas field. As a major stakeholder in securing a safe energy future, the PPL pursues an aggressive exploration agenda aimed at enhancing hydrocarbon recovery.

August 05, 2014

RIZWAN BHATTI

Pakistan Steel Mills (PSM) failed to achieve 20 percent production target for July mainly due to water/raw material shortages and mismanagement. Sources told Business Recorder on Monday that the PSM management appears helpless to even execute its own business plan to gradually increase production and reduce the losses of the mill. The mill achieved some 8 percent production for the first month of this fiscal year against the target of 20 percent given to the federal government.

While, submitting a new business/restructuring plan to avail a bailout package for revival of the country's largest steel plant, Chief Executive Officer Major General Zaheer Ahmad (Retd) has assured the federal government that with the award of suggested financial assistance plan, the mill's production will improve phase-wise and will get a 20 percent production with Rs 1.145 billion net sales in July 2014. Average production for the financial year 2014-15 will be 60 percent.

On these grounds, the Economic Co-ordination Committee (ECC) of the Cabinet approved Rs 18.6 billion financial/bailout packages for the ailing PSM for its revival to secure the future of thousands of employees and make it a profitable entity. Disbursement of fund was initiated in May this year and so far the ministry of finance has released some Rs 9.6 billion to PSM under the approved restructuring plan. However, despite release of billions of rupees fund, the top management is unable to execute its own business/restructuring plan and water crisis, shortage of raw material and mismanagement has slowed the PSM production for the last month at 8 percent. The PSM officials have also confirmed that the mill has not achieved the estimated/planned production as it stood between 7 to 8 percent. They claimed that water shortage has created a crisis-like situation and PSM has some 22-25 million gallons in its reservoir against the capacity/requirement of 110 million gallons.

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PLP NEWS ALERTS EMAIL No. 177-2014 Presently, two plants - Coke Oven Battery and Blast Furnace-II - are running on low capacity with limited water supply to keep the mill operational as shutdown of these two plants will cost billions of rupees. "The remaining plants, including Steel Making Department Hot Strip Mills, Cold Rolling Mill, Hot Rolling Mills, Galvanised Mills and Bullet Mill have already stopped production following raw material shortage," they added.

Sources said the PSM is facing water shortage for last few months, however the management failed to take measures to resolve the issues. "The PSM is getting limited water supply from Gharo pumping station as K-Electric feeders got tripped some 11 times during July, while some 45 times since February 2014. Last breakdown occurred on the third day of Eid," the PSM spokesman said.

He said the mill management is in touch with K-Electric and Karachi Water and Sewerage Board (KW&SB) to resolve the matter on high priority. "We have written letters to K-Electric for proper maintenance of feeders for constant power supply to the water pumping station. In addition, PSM has also asked KW&SB for alternative arrangements for required water supply to the country's largest steel making plant, he added. Normally, the PSM required some 15-16 million gallons water for full operation, however due to water shortage, the mill is consuming some 6 million gallons water from its reservoir to continue the operation. The PSM reservoir will reach level of 110 million gallons in a week, if further breakdown does not occur, he maintained.

August 05, 2014

KHUDAYAR MOHLA

The Supreme Court on Monday turned down the request of former Chief Justice Iftikhar Muhammad Chaudhry that he had made for the provision of record pertaining to a contempt of court case against Pakistan Tehreek-e-Insaf (PTI) chief Imran Khan.

On July 31, 2013, the apex court had issued a contempt notice to Imran Khan for using word 'shameful' against the judiciary; however, the notice was discharged after Imran successfully persuaded the court that he didn't try to malign the court, but used the word only against the conduct of presiding officers in 2013 general elections.

The concerned branch of the apex court was of the view that he (Chaudhry) could not be provided record of the case as he was not an aggrieved party in the matter. Former Chief Justice Chaudhry had sought details of the contempt notice proceedings with a view to strengthening his defamation case against the PTI chief.

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PLP NEWS ALERTS EMAIL No. 177-2014 Supreme Court issues notices over PBA's plea

August 05, 2014

KHUDAYAR MOHLA

The Supreme Court on Monday issued notices to federation and other parties in response to a plea of Pakistan Broadcasters Association (PBA) through which it had sought to become a party to a case pertaining to the appointment of acting Chairman Pakistan Electronic Media Regulation Authority (PEMRA).

A two-member bench of Chief Justice Nasir-ul-Mulk and Justice Amir Hani Muslim resumed the hearing of an appeal of the federation against Islamabad High Court verdict that had struck down the appointment of Pervez Rathore as acting Chairman PEMRA and Kamaluddin Tipu as member of the Authority.

Mian Shams, Israr Abbassi and Fariha Iftikhar, members Pemra, had challenged the appointment of Pervez Rathore and Kamaluddin Tipu as acting Chairman PEMRA and member of the Authority, respectively, in Islamabad High Court (IHC). Appearing on behalf of Pakistan Broadcaster Association (PBA), former Attorney General for Pakistan Irfan Qadir urged the bench to allow his client to become a party to the current matter. He pleaded that being the sole representative of the television channels in the country the PBA interests could be affected by the decision of the apex court over Rathore's appointment as acting Chairman Pemra. Qadir further contended that his client intended to defend the IHC decision in the matter. Responding to a query, the PBA counsel apprised the bench that his client was not a party to the matter before the IHC, adding that IHC had passed various orders in the instant case.

According to the federation counsel, Mahmood, if the PBA has any objection over the appointment of Rathor and Tipu, it must approach the IHC where the current matter is under adjudication. Turning down his plea, the bench decided to consider the PBA's point of view and issued notices to federation and other concerned parties to come up with arguments over maintainability of the Qadir's application to become a party to the matter.

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PLP NEWS ALERTS EMAIL No. 177-2014 Condolence reference

August 05, 2014

The Federa1 Capital Committee (FCC) of the All Pakistan Newspapers Society (APNS) in an emergent meeting held on 27 July 2014 decided to hold an All Pakistan Condolence Reference on 7 August 2014 (Thursday) in Islamabad to pay homage to legendary editor Dr Majid Nizami.

-PR

August 05, 2014

ZULFIQAR AHMAD & WASIM IQBAL

Prime Minister Nawaz Sharif on Monday offered an olive branch to Imran Khan. According to the PM, no one from his party will be allowed to back any no-confidence move against the PTI- led coalition government in Khyber Pakhtunkhwa. The Prime Minister took stock of the situation arising out of Pakistan Tehreek-e-Insaf's (PTI) resolute determination to hold its 'Azadi March' against the alleged rigging in the last year's general elections.

The meeting, which was held here with Prime Minister Nawaz Sharif in the chair, discussed the PTI's scheduled 'long march,' and the possibility of bringing a no-confidence motion against Khyber Pakhtunkhwa Chief Minister Pervez Khattak. The sources privy to the development said that the prime minister directed the senior leadership of the party that first priority of the government should be to hold talks with PTI leadership for finding a resolution to the current conflict between government and PTI.

The also said that the prime minister strictly directed the PML-N members not to proceed with any no-confidence motion against PTI chief minister in Khyber Pakhtunkhwa, saying they respect the PTI's mandate and want a resolution of all the issues through talks. According to sources, the prime minister made it clear that the PML-N would not become a part of any no- confidence motion against the PTI-led provincial government in Khyber Pakhtunkhwa.

"We want the PTI provincial government to complete its five-year term. We respect their [PTI] mandate but it's unfortunate they are not ready to accept our mandate," the sources quoted the prime minister as saying in the meeting which was attended by all senior PML-N members. Punjab governor Chaudhry Sarwar, who was present in the meeting, the sources added, has once again volunteered his services to play his role towards wooing Dr Tahirul Qadri.

The governor Punjab, who has surrendered his British nationality to become governor after PML-N came into power last year, is believed to be an expert negotiator who had successfully persuaded Dr Qadri when the latter had refused to step out of the plane at Lahore last month. However, the sources said the PML-N leadership was not much worried about Dr Qadri. The

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PLP NEWS ALERTS EMAIL No. 177-2014 'Azadi March' of PTI was the main agenda item of the meeting in which some PML-N stalwarts such as Saad Rafique, minister for railways, Shahid Khaqan Abbasi, minister for petroleum and natural resources, Lieutenant General Abdul Qadir Baloch (Retd), minister for Safron, appeared quite aggressive towards Imran Khan.

Prime Minister Nawaz Sharif, chief minister Punjab Shahbaz Sharif and interior minister Chaudhry Nisar Ali Khan, however, asked the emotional party ministers to show restraint. The sources also said the invocation of Article 245 of constitution was appreciated by the majority of members. According to them, in presence of the army, the PTI workers will not be able to disrupt the normal life. When contacted Raja Zafarul Haq, leader of the house in Senate, who also participated in the meeting neither confirmed nor denied any of the above issues discussed in the meeting chaired by the prime minister.

August 05, 2014

Former President Asif Ali Zardari made a telephonic contact with the Chaudhry brothers on Monday and discussed the situation arising out of the planned protest of Pakistan Tehreek-e- Insaf and Pakistan Awami Tehreek. He made this telephonic call in connection with PPP's earlier announcement that the former President will hold consultations with political leadership on the current political situation in the country. It was reported that Zardari also contacted ANP head Asfandyar Wali for the same purpose.

August 05, 2014

After the approval of Prime Minister Nawaz Sharif, Lieutenant-General Mohammad Alam Khattak (retired) has been appointed as new defence secretary, sources in Establishment Division said on Monday. Khattak replaces former defence secretary Lieutenant General Asif Yasin Malik (retired), who stepped down from his position last week after expiry of his contract.

Khattak had served the military as corps commander Quetta, Inspector General Frontier Corps (FC) Khyber Pakhtunkhwa and chief of logistics at the GHQ. Last year, he retired from army service. The defence secretary's position is civilian but traditionally retired military officers are appointed with the consent of Army GHQ.

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PLP NEWS ALERTS EMAIL No. 177-2014 British troops could return to Afghanistan: army chief

August 05, 2014

British combat troops could return to Afghanistan if the country once again becomes a haven for terror groups, the head of the army said Monday. General Sir Peter Wall said he was confident that Afghan forces had the capability to keep the country secure after foreign combat troops leave at the end of this year. However, if the situation changes and the Taliban insurgency gains ground, British troops could be required to go back in, the chief of the general staff said.

August 05, 2014

Equities received a heavy battering weighed by political uncertainty which pulled the benchmark KSE-100 index down by 666 points, the biggest decline in nine months. The index settled at 29,647.83 points. Samar Iqbal, AVP at Topline Securities, said rising political temperature after PTI decided to continue long march/sit-in affected the equity prices.

Global sell-off in equity markets around the world last week also affected the local sentiment. The market fell by 2.2 percent, highest fall after 9 months. Despite today's fall Pakistan index is up 17.4 percent in 2014 till today, she added. Volume rose to 223 million shares and the value increased to Rs 9.4 billion. Lafarge Cement witnessed major activity as investors accumulated on lower levels after take over by Bestway Group. Index heavyweights - OGDC and PSO lost heavily, while UBL resisted the fall amid institutional support, Samar maintained.

During the intra-day trading, the index reached 30,314.07 points highest and 29,436.76 points lowest level. Despite a bearish trend, volume at the ready counter increased to 223.875 million shares compared to 103.619 million shares in previous session. Market capitalisation fell by Rs 128 billion to Rs 6.992 trillion against previous Rs 7.120 trillion. Fahad M Ali, an analyst at JS Global, said bears dominated the KSE-100 Index to close at 29,648. LPCL and FCCL were the volume leaders. The market witnessed correction today due to the ongoing political instability which generated uncertainty amongst investors and therefore they chose to remain net sellers, he added.

He said with foreign markets also declining and Argentina defaulting on its payments, equity markets all over the world are facing pressure. The KSE-100 index is expected to remain rangebound until the political situation becomes stable. Trading took place in 362 companies, of which 39 closed in green zone, 310 in red, while 13 companies landed in blue zone.

Among top 10 volume leaders 7 companies recorded a negative trend. Lafarge Pak emerged the volume leader with 43.84 million shares, down Re 0.47 to close at Rs 15.47. Fauji Cement stood

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PLP NEWS ALERTS EMAIL No. 177-2014 second, down Re 0.61 to close at Rs 20.22 on 12.49 million shares. Lotte Chemical gained Re 0.1 to close at Rs 7.94 on 12.02 million shares. Maple Leaf Cement moved down by Rs 1.23 to close at Rs 29.85 on 10.51 million shares. With 9.73 million shares, Byco Petroleum surged by Re 0.62 to close at Rs 11.71. Bank Al-Falah fell by Re 0.89 to close at Rs 27.58 on 7.39 million shares. TRG Pakistan Ltd decreased by Re 0.99 to close at Rs 12.69 on 7.11 million shares. Askari Bank gained Re 0.65 to close at Rs 22.33 on 6.75 million shares. With a trading volume of 6.47 million shares, B.O.Punjab closed at Rs 8.67, down by Re 0.45. K-Electric recorded a negative trend, down by Re 0.15 to close at Rs 7.20 on 5.29 million shares.

Rafhan Maize and Exide (Pak) were the top gainers with Rs 451.00 and Rs 27.41 to close at Rs 11,701.00 and Rs 575.84, respectively. Wyeth Pak Ltd and Colgate Palmolive were the top losers with Rs 178.89 and Rs 55.00 to close at Rs 3,398.91 and Rs 1675.00, respectively.

Rabab Khan, analyst at Aba Ali Habib Securities, said the benchmark KSE-100 index nose-dived today owing to worries about rising political noise and recent decline in international markets as Fed cut its bond buying programme by another $10 billion per month and likely foreign outflow due to disturbed international political environment. Meanwhile, below expectations Chinese data and Argentina's debt default also had a bounteous effect on foreign flows at the bourse, she said.

August 05, 2014

Bearish sentiments prevailed at the Lahore Stock Exchange (LSE) on Monday where losers outclassed gainers amid descending transaction volume. The LSE-25 index moved down to 5333.98 points against 5447.71 points of last working day, showing a decline of 113.73 points, while transaction volume increased to 01.036 million shares, as compared to previous volume of 985.400 million shares.

According to brokers, the investors are not taking fresh positions, which resulted in bearish sentiments. Some of the investors are also attributing current trend in the market to political developments taking place in the country. Mari Petroleum Company Limited, Byco Petroleum Pakistan Limited and Gharibwal Cement Company Limited were the only three gainers while Pakistan Petroleum Limited, Engro Corporation Limited, Nishat Mills Limited, Adamjee Insurance Company Limited, Nishat (Chunian) Limited, Sazgar Engineering Works Limited, Pak Elektron Limited, Maple Leaf Cement Factory Limited, Fauji Fertilizer Company Limited and Bank Alfalah Limited suffered losses and closed in minus column.

The losers were much ahead with the gainers, as out of a total of 86 companies, only three showed strength and closed in green zone, 28 suffered losses, while 55 companies stayed unchanged at their previous levels. Among the gainers, Mari Petroleum Company Limited gained Rs 8.75, while Byco Petroleum Pakistan Limited and Gharibwal Cement Company Limited were improved by paisa-68 and paisa-67, respectively.

Among the losers, Pakistan Petroleum Limited shed Rs 7.60, Engro Corporation Limited was

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PLP NEWS ALERTS EMAIL No. 177-2014 declined by Rs 4.74, Nishat Mills Limited lost Rs 3.85, while Adamjee Insurance Company Limited, Nishat (Chunian) Limited, Sazgar Engineering Works Limited, Pak Elektron Limited, Maple Leaf Cement Factory Limited, Fauji Fertilizer Company Limited and Bank Alfalah Limited lost Rs 2.15, Rs 2.07, Rs 1.80, Rs 1.49, Rs 1.28, paisa-73 and paisa-62, respectively. The volume leader of the day included the Bank of Punjab with 277,000 shares, Lafarge Pakistan Cement Limited with 190,000 shares and Byco Petroleum Pakistan Limited with 141,500 shares.

August 05, 2014

Bears retuned in the driving seat on the Islamabad Stock Exchange (ISE) on Monday, where losers outclassed gainers amid decrease in index. ISE Ten Index showed a decrease of 131.88 points as the ISE Ten Index moved from 4,768.16 to 4,636.28 points. The overall turnover amounted to 13,700 shares as compared to previous volume of 750,000 shares.

Total 141 companies participated in buying and selling activity. Majority of stocks (123) closed in negative territory, 18 closed in positive territory, whereas no company remained pegged to its overnight levels. The volume of Byco Petroleum was 10,500 shares. The volume of Fauji Fertilizer Company Ltd was 1,200 shares. The volume of Pakistan Petroleum was 1,000 shares.

August 05, 2014

On Monday, BRIndex30 opened at 16,734.71. It touched an intraday high of 16,735.78 and an intraday low of 16,125.35 and closed at 16,253.77, which was -480.94 points or -2.87 percent lower than previous close. Total volume was 162,572,900, which was 72.62 percent of KSE All share volume and 89.45 percent of KSE 100 volume. The KSE All Share volume was 223,875,300 and KSE 100 volume was 181,738,110.

BR Commercial Banks Index closed at 7,117.01 with a net negative change of -81.59 points or a percentage change of -1.13 and a total turnover of 41,837,000. BR Cement Index closed at 3,253.25 with a net negative change of -106.44 points or a percentage change of -3.17 and a total turnover of 74,812,000. BR Oil and Gas Index closed at 4,158.95 with a net negative change of - 114.73 points or a percentage change of -2.68 and a total turnover of 16,136,000.

BR Tech & Comm Index closed at 924.26 with a net negative change of -28.22 points or a percentage change of -2.96 and a total turnover of 14,314,800. BR Power Generation and Distribution Index closed at 4,413.06 with a net negative change of -93.87 points or a percentage change of -2.08 and a total turnover of 8,864,500.

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PLP NEWS ALERTS EMAIL No. 177-2014 Business and Economy: Pakistan Italian envoy briefed on investment opportunities

August 05, 2014

Finance Minister Ishaq Dar on Monday underlined that there is huge opportunities for Italian companies and investors to invest in Pakistan which has a huge market. Adriano Chiodi Cianfarani, Italian Ambassador to Pakistan called on the Finance Minister, Senator Ishaq Dar at the Finance Ministry. The Finance Minister informed the Ambassador about the positive trends in Pakistan economy and said that we have liberalised our economy in order to facilitate foreign direct investment in the Country.

He said that there is a general appreciation by the international financial institutions on the positive outlook and performance of economy during the last year. The Italian Ambassador briefed the Finance Minister on ongoing co-operation between the two countries and said that there is an increasing interest in Pakistani market by Italian investors. He informed that during the last year, there is an increase in trade volume and the GSP plus status will further enhance bilateral trade.

He briefed the minister on exchange of business delegations for harvesting the trade potential. He also gave a brief account of Italian financial assistance being provided to Pakistan including contribution to Pakistan Poverty Alleviation Fund, post flood aid and debt swap agreement. He further informed that his country is willing to provide soft loans for energy and education sectors in Pakistan.

The Finance Minister appreciated the efforts made by the ambassador to enhance trade and economic relations between the two countries and said that in line with the political vision of the PML-N leadership, the government is focusing on enhancing trade instead of seeking aid. He said Italy has been a great friend and we appreciate its co-operation with Pakistan in the multilateral forums. The Finance Minister assured the Ambassador that both the countries will cooperate with each other in enhancing trade relations and facilitating investment.

The ambassador extended invitation from Italian Finance Minister to Senator Ishaq Dar for attending Asia-Europe Finance Ministers meeting to be held in Milan, Italy on September 12, 2014, which will provide an opportunity for multi-lateral and bilateral co-operation to the countries of the two continents. Saleem Sethi, Secretary Economic Affairs Division, Rana Assad Amin, Advisor to the Finance Ministry, Shahid Mahmood Additional Finance Secretary/SA to Finance Minister and senior officials of the Finance Ministry also attended the meeting.

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PLP NEWS ALERTS EMAIL No. 177-2014 Forex reserves fall by $110 million

August 05, 2014

The country's liquid foreign exchange reserves posted a $110 million decline during the last week. The State Bank of Pakistan (SBP) issued its weekly forex report on Monday instead of Thursday due to Eid holidays. According to the report, the country's total liquid forex reserves stood at $14.34 billion as on July 25, 2014 compared to $14.45 billion on July 18, 2014.

During the week under review, the SBP's liquid reserves decreased by $123 million to $9.276 billion compared to $9.399 billion in the previous week. During the week, the SBP has made payments of $70 million on account of external debt servicing and other official payments. The SBP didn't receive any significant inflows during the period under review. Reserves held by banks registered a slight increase of $13.5 million to $5.064 billion as on July 25, 2014 up from $5.051 billion as on July 18, 2014.

August 05, 2014

WAQAR LILLAH

The Consumer Price Index (CPI) inflation increased by 7.88 percent during July 2014 as compared to the same period of last year, Pakistan Bureau of Statistics (PBS) showed. Member, National Accounts, Field Services, PSLM, Prices and Trade Arif Mehmood Cheema while addressing a press conference on Monday said CPI inflation increased by 1.70 percent in July 2014 over June 2014.

According to monthly inflation report released by the PBS in July 2014, the CPI increased by 1.70 percent, Sensitive Price Indicator (SPI) and Wholesale Price Index (WPI) increased by 1.80 percent and 0.54 percent, respectively. The PBS collected the retail and wholesale prices and computed the CPI, WPI on monthly basis while SPI on weekly basis.

Analysis of the CPI data released by the PBS showed that prices of food and non-alcoholic beverages soared to 6.20 percent during July 2014, over the same period last year and prices of non-perishable food items recorded an increase of 5.09 percent, while rates of perishable food items increased by 11.95 percent.

The cost of alcoholic beverages and tobacco increased by 22.24 percent during the period under review, clothing and footwear 10.03 percent, housing, water, electricity, gas and fuels 8.94 percent, furnishing and household equipment maintenance 9.18 percent, health 7.40 percent, transport 5.06 percent, communication 0.18 percent, recreation and culture 5.76 percent, education 16.49 percent, restaurant and hotels 11.86 percent while prices of miscellaneous items

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PLP NEWS ALERTS EMAIL No. 177-2014 surged by 8.0 percent.

About the core inflation pertaining to CPI, Cheema said trimmed core inflation was witnessed as 7.6 percent during July 2014 over July 2013, while it was 7.8 percent during July 2013 over July 2012. He maintained that the non-food and non-energy core inflation was at 8.3 percent during July 2014 over the same period last year, while it stood at 8.2 percent in July 2013 over July 2012.

The food and non-food items that showed prominent increase in their prices during July 2014 over July 2013 include: potatoes (122.60pc), pulse moong (27.17pc), cigarettes (22.46pc), fresh fruits (16.89pc), milk powder (16.47pc), pulse masoor (14.47pc), condiments (13.83pc), motor vehicle tax (36.71pc), education (16.49pc), cotton cloth (15.95pc), electricity (15.82pc), doctor (MBBS) clinic fee (14.41pc), readymade garments (13.58pc), and woolen readymade garments (13.45pc).

The food and non-food items that witnessed significant increase in their prices during July 2014 over June 2014 include: tomatoes (43.71pc), onions (18.17pc), potatoes (16.43pc), fresh fruits (15.22pc), fresh vegetables (10.96pc), eggs (5.73pc), sugar (3.05pc), cigarettes (2.54pc), honey (1.43pc), wheat (1.38pc), beverages (1.35pc), dry fruits (1.33pc), gur (1.32pc), betel leaves and nuts (1.10pc), motor vehicle tax (36.71pc), tailoring (2.58pc), cotton cloth (2.10pc), motor fuel (2.00pc), readymade garments (1.89pc), house rent (1.76pc) and personal equipment (1.56pc).

August 05, 2014

MUSHTAQ GHUMMAN

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PLP NEWS ALERTS EMAIL No. 177-2014 consultants getting $12000 and $5000 per month used their expertise to generate studies that were designed to convince anti-Pak-India trade sections that theirreservations were not relevant. According to sources, the World Bank has hired the services of one of these World Bank consultants who will be provided an office in the Commerce Ministry. Some of the incumbent officials of the Ministry have been given a verbal commitment that they will also be accommodated in future projects if they extend support for the grant of NDMA status to India.

The sources said World Bank''''s assistance will be spent on further development of Wagha facilities which were substantially developed by the USAID. Some of the assistance will be used for strengthening of Pakistan Institute of Trade and Development (PITAD), a think tank of Commerce Ministry, which had proposed that Pakistan should link grant of NDMA status to India with the resolution of other bilateral political issues.

The sources said trade liberalisation talks between Pakistan and India are stalled as Indian Minister of State for Commerce and Industry did not attend the SAFTA ministerial conference recently held in Bhutan. Pakistan was represented by Commerce Minister, Engineer Khurram Dastgir. Dastigir had planned to have a detailed meeting with the Indian Commerce Minister with a view to removing confusion on the demand of Indian Foreign Secretary''''s statement that India will implement the understanding reached in December 2012 and not March 2014. The minister had also decided to hold talks on some other trade-related issue.

Copyright Business Recorder, 2014 Simplified tax system, end SRO culture: PIAF-Founders Alliance's manifesto for LCCI elections

August 05, 2014

Simplification of taxation procedures; cut in tax tariff and elimination of SRO culture would be included in the PIAF-Founders Alliance manifesto for LCCI elections, scheduled to be held in the month of September.

This was stated by Chairman PIAF Malik Tahir Javaid during meetings with representatives of different market associations including President Anjuman-e-Tajran Khalid Pervaiz, Khamis Saeed Butt of Paper Merchants Association and Nasir Hameed Khan from Paspida Badami Bagh.

The PIAF Chairman said that simplification of tax procedures and cut in tax rates are long- standing demands of the business community as it believes that the expansion in tax base would not be possible without removal of lengthy and cumbersome procedures that too with the consultation of trading community which is a stakeholder of the revenue collection endeavours of the Federal Board of Revenue (FBR).

Malik Tahir Javaid while linking high rate of taxes to low revenue collection, termed it a reason to tax-evasion and said if the rate of tax is lowered, there would be a considerable increase in

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PLP NEWS ALERTS EMAIL No. 177-2014 government revenues enabling it to run its day-to-day affairs without any external help.

He further said Alliance would also send proposals to the concerned authorities for the elimination of SRO culture. He said the government would be asked to put in place a new mechanism to eliminate SRO culture. Malik Tahir Javaid said FBR would also be convinced to tax the untaxed sectors to ensure relief to the tax payers as the untaxed sectors are thriving at the cost of genuine tax payers. He said a campaign should also be launched in this regard so that the new businesses could be promoted in the country.

He said the PIAF-Founders Alliance would emerge as a stronger power of the business community to get the challenges resolved in a more speeding manner. He said the alliance is a sign of the unity of the businessmen who would continue to supplement government's efforts for the revival of the economy. Malik Tahir Javaid expressed the resolve that the alliance would introduce true business representatives as its candidates for the upcoming LCCI elections so that the issues of business community could be brought to the limelight.

August 05, 2014

Site Association of Industry (SAI) Chairman Yousuf M Bashir has said that due to long Eid holidays, entire economic activities in the country came to a halt, which adversely affected the already fragile economy. He said that the business activities had remained virtually suspended for almost 10 days and during the holidays, the country remained cut off commercially from the world, causing a huge financial loss to the national exchequer.

"Celebrating religious festivals is compulsory, but we must realise that there should be a limit to everything," he added. He urged upon the government to review its policy regarding holidays so that industrial production and export did not suffer.-PR

August 05, 2014

A delegation of All Pakistan Paper Merchants Association (APPMA), presently visiting China under the leadership of Khamis Saeed Butt, had visited the offices of various trade organisations and chambers and also had B2B meetings with their Chinese counterparts.

According to the APPMA spokesperson, the delegation visited Poly World Centre and had fruitful meetings with paper manufacturers. The delegation also visited Neutek Factory where

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PLP NEWS ALERTS EMAIL No. 177-2014 Chairman Chui Qing Chen warmly welcomed the delegates and briefed them about working of industrial unit. The delegation also had a presentation about production.

The APPMA delegation also attended a dinner which was hosted by the organisers of 11th International Paper Expo. On the occasion, Lv Young Song appreciated the efforts of Khamis Saeed Butt for strengthening the mutual relations of two countries.

Speaking on the occasion, Khamis Saeed Butt lauded the hospitality of Chinese businessmen and hoped that mutual relations between the two countries would touch new heights. He said that APPMA will participate in the mega Paper Exhibition being held in China. Butt further said that there is vast scope and potential for investment and joint ventures in Pakistan and Chinese investors should come forward and avail the opportunity. The delegation also met with Consulate General of Pakistan Babar Amin. The delegation will also conduct market survey to find new avenues for Pakistani merchandise.

August 05, 2014

MUSHTAQ GHUMMAN

A high-level committee has reportedly unearthed a massive financial bungling in different projects of National Productivity Organisation (NPO), a subsidiary of Ministry of Industries and Production, reveal official documents available with Business Recorder.

The sources said, an inquiry was ordered by Dr Sher Muhammad, CEO NPO, aimed at bringing back the looted money from the officials of the organisation. According to a fact-finding report, the inquiry committee comprising Aftab Khan, Waheed Ahmed, Ms Nadia Masood and Zahid Khan reviewed NPO projects in consultation and discussions with the respective responsible officials involved in these projects. The projects are as follows: (i) PMQA; (ii) Mintex - Benchmarking in Textile Sector; (iii) Distance Learning; (iv) Development of Industrial Sector - MIS Project (Enercon); (iv) Energy Conservation Trainings; (v) Building Energy Audit; (vi) Energy Efficiency Projects (Steel and Textile Sector); and; (vii) Peach Project.

The team interviewed respective officials namely Salman Masood, Zafarullah, Asad Fawad and Rauf Niazi whereas Azhar Khan was in the field. The committee also reviewed the related relevant documents available in NPO. In this regard, the following are the initial findings:

The PMQA project was awarded to NPO by Ministry of Industries and Production under PSDP projects. The total allocated amount of this project was Rs 36.990 million. The PMQA project was developed on the basis of the world recognised business excellence principles found in US Malcolm Baldrige National Quality Award and other similar awards. Today, more than 70 countries in the world and 17 countries in Asia have adopted the criteria for performance excellence, ie, Quality Award.

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PLP NEWS ALERTS EMAIL No. 177-2014

The basic objective of this award is to acknowledge and appreciate the good practices of high achievers in all economic sectors at national level by the Government of Pakistan. The total approved cost of the project is 36.990 million, out of which Rs 15.145 million has been allocated for training, assessment and consultancy. Three consultants were contacted for the award of a consultancy agreement as per the requirement of project; out of the three, the contract was awarded to M/s BSI valued at Rs 13.750. So far NPO has released Rs 10.656 million to M/s BSI out of which Rs 7.562 million was for cycle 1 and 3.093 million for cycle 2 which is still pending. The project conducted one training to develop accessors by the Consultant which was considered insufficient.

The documents further reveal that cycle-I has been completed; however, the committee is not satisfied with the work done by BSI as there is no detailed documentary evidence. As per the concerned official, BSI supported the companies in developing their reports which the companies submitted to NPO but which need to be re-examined by NPO management. However, according to the committee, there is no documentary proof available from BSI except a two page document. An amount of Rs 3 million has already been released to BSI without any justification and consultant for technical work for cycle 2 (phase-II) has been released Rs 3 million by NPO though the 2nd cycle has not started yet.

The consultant is to pay up to Rs 0.3 million to NPO against the training cost because the training was not provided. The consultant was/is a GoP employee and as the time for completion was three months the question for the reason behind the delay in cycle 2 arises. The advertisement for the hiring of consultants was not published in newspapers.

The committee recommended that cycle-I is completed; however, the committee is not satisfied with the work done by BSI so for further evaluation, BSI may be asked to present some progress. Consultants registered with NRC/NRT (NPO Scheme) should not be given any favour. The Rs 0.3 million paid to NPO against the training cost needs to be recovered from consultant (BSI). The Rs 3 million for cycle 2 should be recovered from BSI as soon as possible, as no work has been done. The Rs 7.562 million for cycle-1 was also not satisfactory.

NPO won another project through an open bidding from Ministry of Textile, Government of Pakistan to conduct benchmarking study in textile sector of Pakistan. As per agreement signed with Ministry of Textile, the project was to be implemented by an NPO team by involving three sector experts mentioned in a proposal submitted to MinTex. The total allocated amount of consultancy expenses of these experts was Rs 0.91 million. But NPO management changed the implementation plan and signed an agreement with Business Solution International for Rs 6.000 million rupees, out of which NPO has already paid 1.000 million which exceeds the original allocated amount for consultancy. This agreement is a clear violation of the agreement signed with Mintex.

The committee showed reservations on violation of a contract with Mintex and signed an agreement with BSI. The BSI has to perform the following work as per verbal feedback from the concerned official where no written agreement has been found. The project can only be awarded to a third party with the prior approval of Mintex for which Mintex was not taken into confidence and it was awarded to BSI thus the original agreement between NPO and Mintex was violated. The correspondence shows that the NPO resources were used for the project but 70 percent of the revenue generated was allocated to BSI. Hence, NPO interests were ignored.

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PLP NEWS ALERTS EMAIL No. 177-2014 Copyright Business Recorder, 2014 Abad chief says political uncertainty to affect investment

August 05, 2014

Political uncertainty in the country is not in favour of investment-oriented events like Abad Expo 2014, said Mohsin Sheikhani, Chairman Association of Builders and Developers of Pakistan (Abad). He was speaking at a press briefing flanked by Senior Vice Chairman Abad Saleem Kassim Patel, Haris Mithani, project head of Abad expo and chairman Southern Region Abad and other members here on Monday.

He said: "ABAD Expo 2014 is aimed at reviving country's economy but present political scenario may affect this mega event and may create hurdles for the country to be back on track." He urged all political parties to support such events, which were organised with sole aim to promote investments in Pakistan. Sheikhani said that Pakistan was far behind even than Asian countries in terms of construction activities, as around 50 percent of population was living without permanent addresses. He said that this was one of the major factors of high crime hence Abad was advocating for low cost housing schemes in order to eliminate malefactors.

He informed that Singapore Building Authority (SBA) along with its 10 developers were coming to attend Abad Expo 2014 and delegates from Indonesia, Turkey, Sri Lanka, UAE and other countries had confirmed their participation in the event. Senior Vice-chairman Abad Salim Qasim Patel said that this event would help in identifying how Pakistan could capitalise its vast investment potential in building and construction industry. For the purpose, Abad Expo 2014 will host seminar on the topics of Smart City Advocacy in South Asia, Urbanism in context of smart city, Role of construction industry in national economy and low cost housing and rehabilitation of Katchi Abadi to educate delegates and visitors, he maintained.

On the occasion, Haris Mithani, project head of Abad Expo 2014, said that the event would provide an enabling environment to promote Business to Business and Business to Customers contacts. He said that over 100 local and foreign companies from construction sector had been invited to the mega event, which would showcase true potential and create soft image of Pakistan across the globe.

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PLP NEWS ALERTS EMAIL No. 177-2014 Cherat Cement to set up new plant in Nowshera

August 05, 2014

In order to increase cement production, Cherat Cement Company Limited is all set to set up a cement manufacturing plant in Nowshera at a cost of Rs 12 billion with a capacity to produce 1,300,000 tons cement per annum. Keeping in view the expected rise in the domestic demand of cement, the company has decided to install another production plant at its existing site in Nowshera, Khyber Pakhtunkhwa.

According to a notice sent to Karachi Stock Exchange (KSE), the plant will be acquired from M/s Tianjin Cement Industry Design and Research Institute Company Limited (TCDRI). The TCDRI is the largest cement plant manufacturer in China and has wide experience of installing cement plants world-wide and also in Pakistan. The plant will have a production capacity of over 1,300,000 tons per annum.

The new line is expected to be commissioned in 30 months time. The term loan for the project has been arranged and the letter of credit for the import of the foreign component has been established by the company. The total cost of the project is approximately Rs 12 billion.

As per All Pakistan Cement Manufacturers Association (APCMA ), increase in construction activities has pushed up cement demand at local level, as cement dispatches were recorded at about three million tones during the last four months. Market experts attributed the strong growth to pre-Ramadan rush of the private sector to complete projects, a more concerted effort from the cement industry to boost domestic sales before the fiscal year ends and peak demand from the Rawalpindi-Islamabad Metro Bus project is also a reason of increasing demand.

Experts anticipated similar volumetric trend in FY15 where domestic sales are likely to grow by 4-5 percent with key government projects like Metro Bus project which is expected to be completed by December 2014 and Khanki barrage expected to boost domestic growth in 1HFY15..

August 05, 2014

Pakistan's leading provider of end to end (e2e) Supply Chain Management logistics services in collaboration with Freight Connection Pakistan-Leading terminal operator and provider of shipping services, seized a business opportunity to offer professionally run and tailor made facilities dedicated to cleaning, storage, repairs and support services for ISO tanks under the

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PLP NEWS ALERTS EMAIL No. 177-2014 name Pakistan Terminal Operators (PTO).

This is the first ever and only Certified Cleaning Station in Pakistan which has changed the dynamics of the liquid transportation industry by offering laden in ISO tanks both ways. Founder and CEO of e2e Supply Chain Management, Abid Butt said, "Initially, in Pakistan these tanks were used in a single trip as there was an absence of proper, professional cleaning and washing facilities that required a specialised cleaning technology to clear out all odors and contamination in order to be reused for transportation. Now with Pakistan Terminal Operator (PTO), it will not only reduce the cost of transporting empty tanks but will also bring efficiencies among local and international tank operators"

Khurram Niazi COO of Freight Connection Pakistan and CEO of PTO also said that "establishing the first ITCO certified ISO tank and tanker cleaning facility in Port Qasim has helped to play a vital role in changing the dynamic of the liquid transportation industry in Pakistan."-PR

August 05, 2014

The Karachi Port handled 182,146 tonnes of cargo comprising 142,827 tonnes of import cargo and 39,319 tonnes of export cargo including 733 loaded and empty containers during the last 48 hours ending at 0700 hours on Monday. The total import cargo of 142,827 tonnes comprised of 9,752 tonnes of containerised cargo; 3,842 tonnes of general cargo; 69,262 tonnes of bulk cargo: 60,887 tonnes of coal; 8,375 tonnes of soyabean meal and 59,971 tonnes of oil/liquid cargo.

The total export cargo of 39,319 tonnes comprised of 16,717 tonnes of containerised cargo; 13,432 tonnes of loose bulk cement and 9,170 tonnes of oil/liquid cargo. As many as 733 containers comprising 168 containers import and 565 containers export were handled during the last 24 hours on Monday. The breakup of imported containers shows 62 of 20's and 44 40's loaded while 18 of 20's and nil of 40's empty containers, whereas that of exported containers shows 427 of 20's and 69 of 40's loaded containers while nil of 20's and nil of 40's empty containers were handled during the business hours.

There were seven ships namely APL Sokhna, Hyundai Confidence, teera Bhum, Intisar, MT Karachi, Batissa and Somerset containers, oil tankers and cement respectively sailed out to sea during the reported period. There were six vessels viz. Kota Hening, Chembulk Singapore, Splendour, Chrisopigi Lady, Melina and IVS Magpie carrying containers, oil tankers and general cargo respectively currently at the berths.

There was one ship namely IVS Magpie carrying general cargo sailed out to sea on Monday, while six ships namely Chembulk Singapore, Splendour, IVS Beachwood, Navios Ulysses, Hua Qiang and Da Yu Xia carrying oil tankers, coal, soyameal and general cargo respectively are expected to sail on Tuesday. There were five vessels viz. MOL Dignity, KMTC Mumbai, Kota Kaya, Bunga Lavender and Kaghan carrying containers, chemical and general cargo respectively

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PLP NEWS ALERTS EMAIL No. 177-2014 due to arrive on Monday, while three vessels viz. Express Kailash, Ever Radiant and Songa Eagle carrying containers and oil tanker respectively are due to arrive on Tuesday.

August 05, 2014

Indus Motor Company Limited (IMC) has announced booking for the new model of Toyota Corolla on partial payment. This scheme, introduced in July 2012, is aimed at providing value to customers for booking their vehicles at a fraction of its cost, with the remaining amount due at time of delivery.

Under this scheme, the newly-launched Toyota Corolla can be booked for Rs 500,000 only, and a post dated check in favour of Indus Motor Company Limited (IMC) will be retained by the dealership. Upon the availability of the vehicle, the post dated check is redeemed and the vehicle is delivered to the customer. Similarly, for all other vehicles, not available on immediate delivery, the partial payment applies on the payment of Rs 1,000,000. A spokesperson for Indus Motor Company Limited (IMC) acknowledged the response for the new Corolla and termed it a promising sign.

While thanking the customers for their overwhelming appreciation to the new corolla and the post budget price reduction in Toyota Fortuner, he reiterated IMC's commitment towards minimising delivery period of the vehicles. However, in view of the extraordinary demand and delivery exceeding one month, the partial payment scheme is an attractive offer for the customers. He further stated that, "in order to minimise the risk of misuse of this scheme, a customer can book only one vehicle in one-year period from the date of booking, with a condition to submit Computerised National Identity Card (CNIC) and National Tax Number (NTN) at the time of booking.-PR

August 05, 2014

TAHIR AMIN

Pakistan Railways lacks the capacity to lift coal in bulk and would be unable to transport coal to the proposed six coal-based power plants, official sources revealed. Sources told Business Recorder that Pakistan Railways (PR) has issued Letter of Comfort (LoC) to Chinese firm only with the commitment to supply coal to Sahiwal Power Plant which would start generating about 1320MW electricity by October 2017. It would require about 40-45 locomotives for 7-day operation to supply coal only to one power plant in Sahiwal.

However, for the remaining five power plants, no commitment has been made by PR and the

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PLP NEWS ALERTS EMAIL No. 177-2014 Punjab government has not shared its plan to transport coal to the power plants, sources maintained. General Manager (GM) Operations PR Anjum Pervez told Business Recorder that PR has completed its home work and would be able to supply about 16 million tons of coal to four power plants every year. However, for the remaining power plants PR is engaged in negotiations with private sector for joint ventures.

According to sources, about 250 high traction locomotives, hyper trucks, 300 oil tankers, and 200 high capacity wagons would be required to meet the expected demand of transporting coal by the year 2018 when all coal-fired power plants would become operational. Punjab government has invited bids for six power plants at selected sites of Qadirabad near Sahiwal, Bhikki near Sheikhupura, Havelli Bahadur Shah near Jhang, Balloki near Kasur, Trinda Sawaywala near Rahimyar Khan and Mouza Syedawala near Muzaffargarh.

The Punjab government is expecting an investment of about $10 billion to run these coal-based power projects. For most of these plants, coal would have to be initially imported and transported by Railways to Punjab from Karachi, and later locally-produced coal from Thar could be utilised depending on whether large-scale mining has commenced, sources maintained.

Sources said that currently out of total 465 locomotives only 200 are operational including 23 new locomotives procured from a Chinese-led consortium. Due to locomotive shortage, punctuality ratio of train service is no more than 40 percent. The government has earmarked Rs 4.6 billion in the budget 2014-15 for procuring 75 new locomotives, sources added.

August 05, 2014

Expressing displeasure on delaying of developmental schemes, Senate Standing Committee on Communication directed the NHA and Planning & Development Division to ensure early completion of the ongoing PSDP projects. Senate body met here on Monday under the Chairmanship of Senator Muhammad Daud Khan Achakzai which was also attended by senators, Rozi Khan Kakar, Kamal Ali Agha, Mukhtiar Ahmed Dhamrah, Nisar Muhammad, Muhammad Hamayun Khan Mandokhel and Muhammad Mohsin Khan Leghari.

The Committee directed the Ministry of Communication to instigate projects approved by Executive Committee of National Economic Council (ECNEC), on priority basis. The Committee observed that there was not any formula adopted to introduce Public Sector Development Programme (PSDP) by National Highway Authority in the provinces, according to their population and size.

Chairman NHA, Shahid Tarar apprised the committee that total Rs 29,082 million were allocated for 23 ongoing and new PSDP projects in Punjab, Rs 39,557 million for 14 projects in Sindh, Rs 12,100 for 12 projects in Khyber Pakhtunkhwa, Rs 11,410 million for 8 projects in Balochistan, Rs 9,760 million for 5 projects in Gilgit-Baltistan while Rs 9,653 million allocated for 10 other

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PLP NEWS ALERTS EMAIL No. 177-2014 projects during current fiscal year of 214-15.

He informed the committee about the obstacles being faced in completion of various PSDP projects. He said that shortage of funds was main hurdle in completion of projects. Senate body expressed concern over less PSDP allocation of funds for Balochistan as compare to other provinces during the present fiscal year. It also noted that only one new project was introduced for Khyber Pakhtunkhwa in fiscal year 2014-15.

Chairman committee, Senator Muhammad Daud Khan Achakzai said that PSDP projects were being introduced on basis of politics. He directed concerned departments to start work on those projects that have been approved by the ECNEC. He said that cost of various schemes have been raised due to delay in completion. The committee recommended formulating a mechanism for introducing PSDP sachems in provinces according to their population and size.

Copyright Associated Press of Pakistan, 2014 100 years of Sahiwal DCB Conservation: PP issuing commemorative postage stamp

August 05, 2014

Pakistan Post (PP) is issuing a commemorative postage stamp of Rs 8/- denomination on 100 years (1914 - 2014) Sahiwal Dairy Cattle Breed (DCB) Conservation on August 05, 2014. Earlier a postage stamp was launched during 1949 by the then Mamlikat-e-Khuda Dad Bahawalpur on the eve of Silver Jubilee celebrations (1924 - 1949).

Depicting the Sahiwal bull Humped or Zebu cattle (Bosindicus) were domesticated 7,000-8,000 years back in the then Indus valley, present day Pakistan. Out of the 450 tropical breeds, the zebu is the main type in the Subcontinent and Africa. One of the best known zebu breeds is the Sahiwal in Pakistan which developed on the Indus plain especially in the Ganji bar.

Sahiwals are among the largest zebu cattle with a mature weight from 500-900 and 360-400 kg in male and female, respectively. The coat colour is usually reddish dun or sorrel, but brown is also common. The cows have large, sometimes pendulous udders with big teats. The bulls have a large hump, which often leans to one side and a pendulous sheath. The dewlap is also large. The horns are small and commonly loose in the female. Male calves are being utilised for routine utilization as beef after fattening and especially for sacrificial purposes.-PR

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PLP NEWS ALERTS EMAIL No. 177-2014 Company News: Pakistan Flying Cement Company Limited

August 05, 2014

Flying Cement Company Limited (KSE ticker: FLYNG) was incorporated in December 1992 as a public limited company. It was previously known with the name of Zaman Cement Company Limited. The company's factory is situated in Mangowal, District Khushab, in the province of Punjab, on an area of over 121 acres.

FLYNG's plant has a single kiln with an installed capacity of 4,000 tonnes per day of clinker using dry process technology, while the rated capacity of cement is 1.26 million tonnes per annum. Commercial production of cement began in January 2005. The Ishikawajima-Harima Heavy Industries Company Limited, Japan (IHI) had initially set up and then re-engineered FLYNG's plant. IHI is the supplier and technical advisor of FLYNG and is involved with manufacturing and facilitating in space development, jet engines and storage systems and process plants.

FLYNG also provides the facility of transporting cement to markets and sales depots, for which it has a fleet of 8 (18 wheeler) trucks for delivery across various parts of the country. The company is part of the Flying Group of Industries (FGI), founded in 1971. FGI has diversified interests in manufacturing activities such as photo copy paper, writing/printing paper, coated duplex board, sack kraft paper and tissue paper besides dry Portland cement.

FLYNG is mainly involved in the manufacture of Ordinary Portland Cement (OPC 42.5N) cement. The company complies with Pakistan, British, American (American Society for Testing and Materials), European and Indian standards and also holds cement quality certifications from the Cement Research and Development Institute, Pakistan and Societe Generale De Surveillance, Switzerland. The Board of FLYNG comprises of eight members with Kamran Khan as the Chairman. Agha Humayun Khan serves as the CEO of the company.

FINANCIAL PERFORMANCE Q3 FY14 During the third quarter of FY14, FLYNG's performance improved in terms of volumes owing to better production management and marketing of cement. Higher production and sales led to a profit after tax of Rs 3.79 million during the quarter compared with an after-tax loss of Rs 36.54 million during the corresponding period of the previous year.

The company's financials have also improved remarkably compared with last year. Sales increased by a whopping 258 percent during the nine-month period, leading to a gross profit of Rs 35.32 million against a loss of Rs 121 million during the corresponding period of the previous year. The third quarter also witnessed an increase of 189 percent in sales compared with the corresponding period of the previous year.

Operating expenses, including distribution and administrative costs, cumulatively increased by 28.61 percent during the nine-month period. However, the increase was more pronounced during the third quarter with operating expenses growing by 67.5 percent compared with the

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PLP NEWS ALERTS EMAIL No. 177-2014 corresponding period of the previous year. On the other hand, finance costs came down by 11.68 percent and 6.14 percent during the nine-month period and the third quarter, respectively.

Operating profit turned positive this year, amounting Rs 3.29 million compared with a loss of 153 million during 9M FY13. For the third quarter, operating profit stood at Rs 5.74 million compared with a loss of Rs 75 million during the corresponding period of the previous year. The company has also benefited from over Rs 22 million in other income this year, while taxation figures came down by 91 percent during the nine-month period compared with the corresponding period of last year. The company's net margins and EPS rose by an impressive 132 percent during the nine-month period and by 109 percent during the third quarter of FY14.

FUTURE OUTLOOK While the company has shown impressive recovery during the year, FLYNG's performance has also benefited from an environment that has been favourable for the cement and construction sector whereby local cement despatches in the country increased by 2.5 percent. Despite a fall in cement exports, local demand remained high on account of mega projects both in the public and private spheres. Volumes for cement players are likely to remain dependent on a number of government-led mega projects and realisation of PSDP allocations towards infrastructure development in the country.

======FLYNG key financials ======Nine months ended Quarter ended ======Rs (mn) Mar-14 Mar-13 Mar-14 Mar-13 ======Sales 1,565.83 437.21 539.87 186.88 Cost of sales (1,530.50) (559.07) (525.49) (255.57) Gross profit/(loss) 35.33 (121.86) 14.38 (68.69) Operating expenses Distribution cost (3.79) (3.10) (0.44) (0.39) Administrative expenses (8.03) (6.08) (1.52) (0.77)(11.81) (9.19) (1.96) (1.17) Operating profit/(loss) 23.51 (131.05) 12.42 (69.86) Finance cost (20.22) (22.90) (6.68) (7.12) Operating profit/(loss) 3.29 (153.94) 5.74 (76.98) Other income 22.15 - - - Profit/(loss) before taxation 25.44 (153.94) 5.74 (76.98) Taxation 6.25 67.35 (1.96) 40.43 Profit/(loss) after taxation 31.69 (86.60) 3.79 (36.55) EPS-basic (Rs) 0.18 (0.49) 0.02 (0.21) ======

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PLP NEWS ALERTS EMAIL No. 177-2014 Cotton and Textiles: Pakistan MoTI formulating five-year Textile Policy: National Assembly informed

August 05, 2014

ZAHEER ABBASI

The Ministry of Textile has informed the National Assembly that it is in the process of formulating Textile Policy for the next five years to increase the country's exports. The ministry further informed the House that the Federal Board of Revenue (FBR) has been issued directives for duty-free import of textile machinery and Rs 28 billion have been disbursed under Textile Policy 2009-14 initiatives.

The Commerce Ministry informed the National Assembly that as Pakistan's biggest trade partner, the US is a key market for Pakistani textile and apparel exports. The Trade and Investment Framework Agreement (TIFA) provides the framework for co-operation in trade between the two countries. Bilateral trade showed growth in 2013. Exports from Pakistan to the US increased from the first half of 2012 to 2013 by 4 percent whereas imports from the US into Pakistan increased by 10 percent. During the Prime Minister's visit to Washington DC last year, it was agreed that the two countries would develop a joint action plan to expand trade and investment flows between Pakistan and the United States over the next five years. The 7th meeting of Pakistan-US TIFA Council was held in Washington on 13th May 2014. The Pakistan side was led by Minister of Commerce and the US side by Ambassador Michael Froman. An agreement on a joint action plan to expand bilateral trade and investment flows over the next five years was announced after the meeting. An MoU on joint efforts to empower women and to promote women's entrepreneurship was also signed, the ministry added.

About trade with India, the National Assembly was informed that with regard to South Asian Free Trade Area (Safta) region, commerce ministers of Pakistan and India held a meeting on January 18, 2014 in New Delhi, India. During the meeting, the two sides, inter-alia, reached an understanding on normalising trade relations and provide Non-Discriminatory Market Access on a reciprocal basis. Recent studies estimate the following benefits to be accrued as a result of normalisation of trade relations with India: (i) Pakistan's exports to India will increase substantially within three years wherein textiles, manufactured items and agricultural products are expected to post potential export increase; (ii) there would be considerable increase in import bill savings; (iii) GDP growth of Pakistan would be higher; (iv) there would be net increase in employment; (v) the number of poor will decrease as a result of enhanced economic activity; and (vi) there would be significant consumer welfare gains.

The House was further informed by the Minister for Commerce that Pakistan concluded a Free Trade Agreement (FTA) with Sri Lanka on August 1, 2002. Pakistan-Sri Lanka Free Trade Agreement (PSFTA) is operational from June 12, 2005. Under the FTA, Sri Lanka and Pakistan have agreed to offer preferential market access by way of granting tariff concessions on a reciprocal basis. Due to Pak-Sri Lanka FTA exports from Pakistan to Sri Lanka increased from

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PLP NEWS ALERTS EMAIL No. 177-2014 $200.605 million during the year 2006-07 to $327.141 million during 2012-13, whereas exports from Sri Lanka to Pakistan increased from $63,384 million in 2006-07 to $76,569 million in 2012-13. Additionally, besides this, Pakistan is in process of commencing negotiations to conclude FTAs/PTAs with Bangladesh and Nepal.

August 05, 2014

Insufficient government's efforts to augment trade, energy shortage, poor law and order and political uncertainty hurt the apparel textile export growth during the just ended fiscal year 2013- 14, said textile exporters on Monday. The usual growth dashed the textile exporters' hopes on GSP plus gain, saying the duty-free market access to the EU has not paid off, as they had anticipated because of numerous unresolved issues.

Pakistan's readymade garments' export posted an increase of $156 million (9 per cent) to $1.955 billion in the just ended fiscal year 2013-14 as compared to the garments' export of $1.799 billion in the corresponding fiscal year 2012-13, Pakistan Bureau of Statistics (PBS) say.

"The 9 per cent growth in readymade garments export is a normal trend," said chief co-ordinator, Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Ijaz A. Khokhar, saying the government's efforts are 'invisible' to boost up exports.

In term of volume, readymade garments export went up by 2.567 million dozens (9.49 per cent) to 29.615 million dozens in last fiscal year from 27.048 million dozens in the corresponding fiscal year 2012013, the PBS indicates. In June 2014, the country's readymade garments export grew by (17.15 per cent) to $186.751 million from $159.410 million in June 2013. In term of quantity, readymade garments export surged by 409,000 dozens (17 per cent) to 2.829 million dozens in last fiscal year from 2.420 million dozens in the corresponding fiscal year, the PBS suggests.

"A sizeable increase after the GSP plus acquisition has not been achieved as the exporters were expecting," Khokhar said, adding that the Federal Commerce Ministry and Trade Development Authority of Pakistan lacked policies to boost up trade. He held the government and its trade organisation responsible for the export growth stagnation, saying the Federal Textile Minister is keen to help the export grow but the commerce ministry is unsupportive in playing its role.

"Textile Ministry is handicapped as the government has not given any role to augment trade," he said and warned the government of a 'severe' trade collapse if it did not step up its efforts to achieve the results without further delays. He said the stagnant growth in trade is an 'eye-opener' for the government as it has failed to extract maximum benefits from the GSP plus facility. "The government should draw a road-map for export growth before the facility ends," he urged.

"The government should assign a role for its commercial consulates in the western world with a

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PLP NEWS ALERTS EMAIL No. 177-2014 view to get results for trade growth and they should be held responsible for their failures," said Ijaz Khokhar, adding that the government should not be lenient to the commercial consulates and force them to perform or quit their posts.

August 05, 2014

Muhammad Usman, General Manager of an international brand Levi Strauss & Co has joined Khaadi on Monday as General Manager after spending 11 successful years with Levi's. Khaadi, since opening its doors in 1998 is now a leading apparel and home textile brand of Pakistan. The company continues on its expansion strategy by opening several retail stores in Pakistan and abroad.

Usman will be bringing in his strong retailing and marketing experience and will be an integral part of Khaadi's aggressive expansion locally as well as globally.-PR

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PLP NEWS ALERTS EMAIL No. 177-2014 Agriculture and Allied: Pakistan Daily trading report of PMEX

August 05, 2014

On Monday at Pakistan Mercantile Exchange (PMEX) value traded was PKR 1,561 million. Number of lots traded was 7,795 and PMEX Commodity Index closed at 3,023. Major business was contributed by crude oil amounting to PKR 893 million, followed by gold at PKR 633 million and silver at PKR 35 million.

August 05, 2014

M RAFIQUE GORAYA

Despite below normal rains in the month of July, the Indus River System Authority has managed to store 11.55 MAF water in the three reservoirs ie Mangla, Tarbela and Chashma till 4th August, 2014, against their total capacity of 13.8 MAF of water. WAPDA water managers told Business Recorder here on Monday that authorities have stored 6.14 MAF water in the Mangla Dam on the River Jehlum against the upgraded dam's increased capacity of 7.38 MAF.

The water level in the dam has risen to 1225.75 ft against its maximum height of 1242 ft. They hoped that the dam would be filled during next two weeks time as, according to the Meteorological Department forecast, the rainfall will increase in August and September. Speaking about the Tarbela Dam that also contributes about 3,400 MW much needed electricity during the monsoon season, the water managers said the filling of the dam was also right on the target. The present level of the water is 1527.4 ft against the maximum height of 1550 ft. 5.191 MAF water has been stored in the dam against its maximum capacity of 6.2 MAF.

Out of the current inflow of 2,36,700 cusecs water in the Indus River, the Indus River System Authority is retaining about 90,000 cusecs water in the Tarbela Dam and discharging 1,45,000 cusecs water downstream reservoir for irrigation and hydel power generation. Meanwhile, 0.224 MAF of water has been stored in the Chashma Barrage on the mighty Indus River. That is just two ft below of its maximum level of 649 ft.

It is worth mentioning that the raised Mangla Dam by 30 ft has become the country's biggest reservoir surpassing Tarbela Dam's storage capacity of 6.2 MAF. The Mangla Lake now has 2.88MAF of additional water available to be used for agriculture and generation of hydel electricity. As a result, the live storage capacity of the raised Mangla Dam has increased to 7.39MAF from 4.51MAF. The stored water would be used during the lean winter period for

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PLP NEWS ALERTS EMAIL No. 177-2014 sowing the Rabi crops, including staple food wheat, oil seeds, grams, lentils, vegetables, fodder, orchards, etc and cheap hydel power generation.

August 05, 2014

ZAHID BAIG

Ministry of National Food Security and Research (NFS&R) has decided to take up the provinces onboard in its efforts of restoring activities of the Pakistan Oilseed Development Board (PODB) across the country with ultimate aim of enhancing national indigenous edible oil production.

PODN sources told Business Recorder here on Monday that the PODB since its restoration in September 2012 had been assigned to carry out activities of developing olive plantation in Fata and Islamabad Capital Territory (ICT) areas. However, its new management had recently recommended for restoring its activities across the country to meet the challenge of enhancing indigenous edible oil production.

Sources maintained that the Minister for NFS&R Sikandar Hayyat Bosan in a recent meeting was informed that the PODB was established in 1995 through a resolution with a mandate of enhancing indigenous edible oil production. The meeting was of the view that edible oil import position has not reduced significantly as it was in 1995. PODB had made breakthrough in oilseed ie canola/sunflower and oil bearing trees of olive and oil palm, however these interventions could not be sustained, the meeting observed.

Secretary NFS&R apprised the meeting that consequent upon the devolution of Ministry of Food and Agriculture, PODB was wound up on 30-06-2011 and its employees were transferred to various Ministries/Divisions/Departments. The High Power Committee constituted by the Prime Minister to settle post devolution issues had recommended restoration of PODB for federal areas only which was approved by the Prime Minister and PODB was restored on 12-09-2012. The Secretary informed that status / mandate of restored PODB has not been notified as its jurisdiction and functions to be assigned were not settled because of the fact that it can not operate beyond federal areas.

Secretary informed that NFS&R is in process of preparation of a PSDP project on promotion of large scale olive plantation in the country. Under this project NFS&R would assign PODB a considerable share for olive development in ICT and Fata areas Managing Director PODB Syed Muhammad Nasir Ali in his presentation emphasised the need for settlement of PODB status and its employee as well as the mandate of restored PODB. MD highlighted that if the national issue of edible oil production is to be addressed then PODB must be restored countrywide. Assets of PODB (including buildings, machinery, equipments, record etc) are still lying at different places throughout the country unattended.

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PLP NEWS ALERTS EMAIL No. 177-2014 The Minister expressed his desire that before taking any decision for the countrywide restoration of PODB, provinces must also be taken onboard. The meeting decided that the NFS&R would arrange meetings with secretaries' agriculture, provincial governments to get their views about working of PODB's offices. It was also decided that the PODB may for the time being continue its activities in ICT and Fata.

August 05, 2014

Wheat is considered as the second biggest contributor in increasing the inflation rate of Pakistan. According to the State Bank of Pakistan's quarterly report, "wheat contribution to inflation is 10.9 per cent which is second highest among the 10 top contributors to the inflation."

However, the speed of increase eased when wheat's supply increased following the commodity was released in higher quantity by the government and the private sector, it added. A wheat trader said that on the one hand, wheat prices have been going up since June 2013, mainly due to short supply in the domestic market as the production in the last season was below target and, on the other hand, global wheat prices bounced back in February 2014 after a declining trend since July 2013.

Moreover, unfavourable weather conditions in the United States and South America and concerns of possible disturbances in wheat supply due to Ukraine and Russia's stand-off contributed to the recent increase in global prices. However, with an expected 8.5 per cent growth in global wheat production in 2013-2014, the recent pressure on global prices were likely to recede. Besides, wheat prices in Pakistan were expected to remain stable with above target production during this year, he added.

Recently, Pakistan Flour Mills Association (PFMA) has increased price of flour (No 2.5) by Rs 1.50 per kilogram to Rs 39.50 per kg. According to PFMA (Sindh), the wheat price has been increased by Rs 1.50 per kg in the wholesale market to Rs 34.50 per kg. The PFMA has, however, clarified that the increase in flour price was not meant for the provincial flour mills selling flour to Bachat bazaars. Retailers are selling flour between Rs 45 and Rs 48 per kg.

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PLP NEWS ALERTS EMAIL No. 177-2014 Rice export to Iran may go up

August 05, 2014

The export of Pakistan's basmati rice to Iran could increase manifold following Indian rice exporters stepped back due to enhanced import duty on Indian basmati rice by Iran. The industry sources told Business Recorder here on Monday that as Iran has raised import duty on Indian basmati rice from 22 per cent to 40 per cent, Pakistan's rice exporters taking advantage of the situation have demanded of the government to facilitate them to export the rice to Iran and to receive payment of export bills in rupees.

They said: "India benefited a lot by facilitating its exporters to export to Iran and receive payments in Indian rupees and increased its basmati rice exports to Iran substantially as there was no competition from Pakistan. Now, when Iran has raised import duty on Indian basmati rice from 22pc to 40pc and Indian exporters are now in confusion, there is good chance for Pakistani exporter to increase export of basmati rice to Iran, they added." For several years, Pakistan's super basmati rice because of its aroma and nice taste has been in great demand in Iran but due to hurdles created by the dollar regime, the Iranian buyers were unable to remit the value, they said, adding that a although there are no sanctions on food and medicines yet, the international agency for money transactions blocked all remittances from Iran, causing setbacks to Pakistani basmati rice exporters and Iran's importers of basmati rice.

Rice exporters have also urged the Federal Commerce Minister to act promptly and make arrangements with Iran for receiving payments in Pakistani rupees for all exports to Iran so as to enable the Pakistani basmati rice exporters regain their lost market.

August 05, 2014

RIZWAN BHATTI

While, submitting a new business/restructuring plan to avail a bailout package for revival of the country''s largest steel plant, Chief Executive Officer Major General Zaheer Ahmad (Retd) has assured the federal government that with the award of suggested financial assistance plan, the mill''s production will improve phase-wise and will get a 20 percent production with Rs 1.145

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PLP NEWS ALERTS EMAIL No. 177-2014 billion net sales in July 2014. Average production for the financial year 2014-15 will be 60 percent.

Presently, two plants - Coke Oven Battery and Blast Furnace-II - are running on low capacity with limited water supply to keep the mill operational as shutdown of these two plants will cost billions of rupees. "The remaining plants, including Steel Making Department Hot Strip Mills, Cold Rolling Mill, Hot Rolling Mills, Galvanised Mills and Bullet Mill have already stopped production following raw material shortage," they added.

He said the mill management is in touch with K-Electric and Karachi Water and Sewerage Board (KW&SB) to resolve the matter on high priority. "We have written letters to K-Electric for proper maintenance of feeders for constant power supply to the water pumping station. In addition, PSM has also asked KW&SB for alternative arrangements for required water supply to the country''s largest steel making plant, he added. Normally, the PSM required some 15-16 million gallons water for full operation, however due to water shortage, the mill is consuming some 6 million gallons water from its reservoir to continue the operation. The PSM reservoir will reach level of 110 million gallons in a week, if further breakdown does not occur, he maintained.

August 05, 2014

IQBAL MIRZA

Import of chicken meat by multinational food chains in Pakistan not only lacks Halal credentials but carries the health risk because Pakistani customs rely on supplier certification instead of

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PLP NEWS ALERTS EMAIL No. 177-2014 periodic inspections of slaughter houses.

Recently, Chinese electronic media exposed a US owned food processor Husi Food Co, owned by OSI Group of Aurora operating in China that was shown mixing expired chicken meat and beef being repacked with new expiry dates. The Chinese authorities have closed down processing plant after confirming the authenticity of the footage. The meat processing plant was supplying products to McDonald's and other international fast food chains.

The electronic media clearly showed workers picking up meat that fell on the floor, as well as mixing meat beyond its expiration date with fresh meat. McDonald's Japan establishment admitted that the Chinese supplier accused of selling expired beef and chicken had provided 20 percent of the meat for its chicken nuggets. It has stopped marketing some products till fresh arrivals from other sources.

Unfortunately, international fast food chains operating in Pakistan also import all McDonalds' chicken product requirements such as Nuggets and Chicken Patty from Husi Foods Company Ltd, China. The Pakistan Customs record shows that some of these chains imported tons of chicken products regularly from the same company. Their latest imports were over 41 tons of chicken products in the month of May and over 71 tons in the month of June. It is no wonder that chicken products are being exported by the food company at a throwaway price notwithstanding that there is a preferred lower rate of import duty from China of 16 percent.

Still, according to knowledgeable sources, the federal and provincial governments in Pakistan have failed to take any action and are reluctant to destroy the imported meat even after confirmation that Chinese government itself has sealed the food processor in their country.

Food and health experts regret that there is no requirement of any agency to accredit a chicken meat and chicken product producers for exports to Pakistan. Further, the customs authorities lack facility to verify whether the meat products being imported are expired or unwholesome or truly Halal meeting the Sharia requirements. They pointed out that no country other than Pakistan allows import from any country without first physically verifying the production facilities' capability of supplying a quality product that the product originates from disease free animals, are free of antibiotics and other drug and chemical residues.

They further revealed that Muslim countries also verify the Halal slaughter procedures. They said Pakistani regulations forbid stunning of animals for production of Halal meat. No authority in Pakistan has confirmed whether the meat products being imported originate from animals stunned before slaughter, they regretted.

They said China allows stunning for production of Halal meat. "This contradiction in Halal slaughtering procedure itself warrants a ban of so called Halal meat from China" they added. They appealed the Ulema to rise to the occasion and force the government to ban import of meat produced from animals stunned before slaughter.

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PLP NEWS ALERTS EMAIL No. 177-2014 Taxation: Pakistan Beverage makers' premises in Karachi: IROs deputed to monitor actual production & sales

August 05, 2014

Large Taxpayer Unit (LTU) Karachi has deputed Inland Revenue Officers (IROs) at the manufacturing premises of all beverage manufacturers in Karachi to check their actual production and sales during 2014-15. Sources told Business Recorder here on Monday that the LTU Karachi has exercised powers under section 40B of the Sales Tax Act 1990 for the monitoring of production, sales and stock of the beverage manufacturing companies.

The action has been taken on the directions of the tax authorities in the FBR. According to the report of LTU Karachi to the FBR, with reference to the Board's letter on the said subject it has been directed to monitor the production and sales of aerated waters/beverage manufacturers. Accordingly, the officers of Inland Revenue have been posted at the manufacturing premises of beverages located in Karachi u/s 40B of the Sales Tax Act, 1990 read with section 45(2) of the Federal Excise Act, 2005 falling under the jurisdiction of LTU, Karachi.

As far as the beverage manufacturing premises located outside Karachi are concerned, the LTU requires assistance from the local Regional Tax Offices (RTOs). It is therefore requested that a proper number of Inland Revenue officers having experience and credibility in Sales Tax matters may be posted to one of the manufacturing premises of a beverage unit in Hyderabad located at Mirpurkhas Road, Hyderabad u/s 40B of the Sales Tax Act, 1990 read with section 45(2) of the Federal Excise Act, 2005.

The Inland Revenue Officers so posted may be directed to monitor production, sales and stock position on 24 hours seven days a week basis and submit weekly report of monitoring to the Commissioner Inland Revenue, Zone -IV, LTU, Karachi having jurisdiction over the unit concerned.

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PLP NEWS ALERTS EMAIL No. 177-2014 Fuel and Energy: Pakistan Power projects: Prime Minister reviews progress

August 05, 2014

Prime Minister Nawaz Sharif on Monday chaired a meeting to review the progress on Pakistan- China Joint Commission''s energy projects, including early harvest projects. The meeting was attended by Khawaja Muhammad Asif, Minister for Water & Power, Ishaq Dar, Minister for Finance, Ahsan Iqbal, Minister for Planning, Khawaja Saad Rafique, Minister for Railways, Shahbaz Sharif, Chief Minister Punjab, Tariq Fatemi, Special Assistant to PM, Dr Musadik Malik, Special Assistant to PM and others.

Prime Minister directed to expedite the up-gradation of country''s electricity transmission and distribution system so that additional power generated from ongoing and new projects is smoothly distributed while line losses are contained. "No laxity would be tolerated on the part of project teams working on up-gradation of power transmission and distribution system. We aim at providing affordable electricity to the masses," said the Prime Minister. He further said that he would personally monitor progress of energy projects.

August 05, 2014

ABDUL RASHEED AZAD

As per officials, the country''s local gas production stands at around 4.2 Billion Cubic Feet per Day (BCFD) against total managed demand of 6 BCFD. To meet the increasing demand the government has initiated the import of Liquefied Natural Gas (LNG) from Qatar for which a LNG terminal is under construction at Port Qasim in Karachi which would be completed by the end of April 2015.

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PLP NEWS ALERTS EMAIL No. 177-2014

The ministry officials told Business Recorder on Tuesday that apart from this 100 MMCFD of gas and 4,000 barrels of crude oil, the country''s oil/gas production from other fields also increased by nearly 300 MMCFD and crude oil production within last 12 months rose from 73,000 barrels per day to 102,000 barrels per day.

On June 6, 2014, Mari Petroleum Company Limited (MPCL), the operator of Ghauri block situated in District Jehlum, Punjab discovered a significant crude oil reserve with estimated production of 5,500 barrels per day. The Ministry of Petroleum and Natural Resources has added 113 Million Cubic Feet per Day (MMCFD) of additional gas and 4,000 barrels of crude oil to the system produced by 21 smaller oil/gas fields from June 2013 to May 2014.

According to official data of the Petroleum Ministry, the oil/gas exploration and production companies working in the upstream sector during past 14 months drilled 78 oil/gas wells and announced 21 new discoveries, which have started producing 113 MMCFD of gas and 4,000 barrels of crude oil per day. The PPL operates six producing fields across the country at Sui (Pakistan''s largest gas field), Adhi, Kandhkot, Chachar, Mazarani and Hala and holds a working interest in fifteen partner-operated producing fields, including Qadirpur the country''s second largest gas field. As a major stakeholder in securing a safe energy future, the PPL pursues an aggressive exploration agenda aimed at enhancing hydrocarbon recovery.

August 05, 2014

MUHAMMAD SHAFA

Federal Ministry of Water and Power has tightened the noose around K-Electric over complaints that the power utility was allegedly misusing powers to gain undue monetary benefits. In a complaint lodged by K-Electric's consumers forum's chief co-ordinator with the Ministry's secretary and National Electric Power Regulatory Authority's (Nepra) director (Consumers Affairs), the former had levelled some allegations against the KE, saying that the power utility has adopted 'unfair means' and 'illegal' methods to increase revenue from its 2.2 million consumers.

In response to the complaint, the Ministry of Water and Power through a through a letter (No Ent.10(1)/2014-KESC(Misc) has sought an explanation from the K-E's chief executive officer on July 23, asking him to furnish comments in the matter to this ministry as early as possible. However, Ministry of Water and Power's Section Officer (Ent.) Taj Muhammad, said: "Since the K-E has not yet not submitted its explanation, we are going to send another reminder to the power utility in the next few days."

Nepra has also issued a show-cause notice to the K-E under Section 39 of Power Act, 1997, asking the utility to submit its explanation about the complaint within 20 days. As the power

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PLP NEWS ALERTS EMAIL No. 177-2014 utility had failed to submit its explanation by the due date, Nepra has issued another show-cause notice (No TDC 09/2520-2014, dated 25th July) to the K-E's CEO.

The Consumers' Forum in its complaint lodged with Ministry of Water and Power and Nepra has stated that the power utility was still charging an extra Rs 8 from its consumers on account of bank charges.

KE was also demanding Rs 7.5 per month as meter rent from its consumers although the cost of the meters had already been paid by consumers at the time of their installation, the complainant pointed out, saying that the power utility had been charging the amount under these two heads shortly after its privatisation.

The complainant further said that the KE also received Rs 5million subsidy from the federal government in 2010, but did not pass it on to consumers. Moreover, an enquiry conducted by Nepra on the complaints of certain consumers also indicated that the K-E has been using ùnfair' means to increase revenue by issuing `bogus', àverage' and ìnflated' bills to it consumers. Meanwhile a spokesman for K-Electric said that the power utility never adopted ìllegal' measures to generate its revenue.

Elaborating, he said: "K-E perfectly knows its social responsibility and it is because of this reason that the utility's call centres remain open round-the-clock to help resolve the problems of its consumers without any delay." Claiming that the power utility has not taken any government subsidy since 2005, the spokesman said that the power tariffs being paid charged by the utility from its consumers were significantly lower than those determined by Nepra.

Replying to a query, he said that K-E was taking `bank' charges as per Nepra's orders and the power utility did not implement any anti-consumer policy. With regard to meter's rent, he said it was `our' due right. Claiming that K-E never indulged in `bogus' or `excessive' billing, he said if consumers have any such problem, then they should approach the power utility to resolve such issues.

August 05, 2014

K-Electric has categorically rejected the impression that was given in a news report that KE's field employees were on Eid holidays, resulting in delay of repairing faults. According to a press statement, KE's field staff work 24/7 for maintenance and rectification services across the city and are specially geared up to respond to fault calls urgently on important occasions.

The statement clarified that there was tripping in the Extra High Tension (EHT) line due to extra moisture and humidity, which affected 12 out of 62 grid stations in the city. According to KE, the tripping occurred around 4am on Friday morning and restoration efforts were started without any delay. KE's maintenance teams geared-up their efforts to back feed on immediate basis where possible and restored electricity to areas connected to affected grids partially.

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PLP NEWS ALERTS EMAIL No. 177-2014 "Unfortunately not all the areas have the options of back feeds but we did it where it was possible, especially in the sensitive areas of the city," said KE's spokesperson.-PR

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PLP NEWS ALERTS EMAIL No. 177-2014 Banking & Finance Pak forex figure $ 14.34006bn

Monday, 04 August 2014 20:10

Posted by Imaduddin

KARACHI: The total liquid foreign reserves of the country stand at dollars 14,34006 billion, said State Bank of Pakistan.

According to SBP's weekly statement issued here on Monday, the foreign reserves held by State Bank on July 25 amounted to dollars 9.27507 billion. The net foreign reserves held by other banks were dollars 5.06409 billion.

During the week, SBP's Liquid foreign reserves decreased by dollars 123 million to dollars 9,276 million compared to dollars 9,399 million in the previous week.

Over this period, SBP has made payments of dollars 70 million on account of external debt servicing and other official payments. SBP did not receive any significant inflows during this week.

Monday, 04 August 2014 20:07

Posted by Imaduddin

KARACHI: State Bank of Pakistan issued fresh currency notes of Rs 154 billion during the month of Ramazan to cater to the high demand from general public for fresh currency notes on the occasion of Eid-ul-Fitr. A statement issued by State Bank here on Monday said that SBP's Banking Services Corporation (BSC) fully utilized the extensive network of commercial bank branches across the country and issued fresh notes to all commercial banks in good numbers.

In addition to this, the SBP BSC also established its own counters in 150 designated branches of commercial banks from which, fresh currency notes to general public were issued. These branches were selected from all across Pakistan ensuring maximum geographical coverage and population.

Moreover, keeping in view the higher demand of fresh banknotes on this occasion and to further facilitate the public in having fresh notes, all 16 field offices of the bank also issued fresh notes to the

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PLP NEWS ALERTS EMAIL No. 177-2014 general public from its counters during last three working days of Ramazan. Under these arrangements, fresh notes worth Rs 20,000 each were issued to all members of general public against showing of their CNIC/smart cards.

Besides, meeting public demand for small denomination currency notes, SBP BSC offices also issued higher denomination currency notes i.e. Rs 500 and above in sufficient quantity to commercial banks ensuring uninterrupted operation of their ATM machines throughout Eid holidays.

The cumulative issuance of fresh currency notes by SBP under all above noted arrangements remained at Rs.154 billion. Out of this Rs 31 billion comprised lower denomination notes up to Rs 100. Whereas, the currency notes worth Rs 123 billion of higher denomination were issued for meeting ATMs needs of commercial banks. It should be noted that during Eid-ul-Fitr 2013 the total issuance was at Rs 139 billion.

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PLP NEWS ALERTS EMAIL No. 177-2014 BR Research: All KSEs devilish slide

August 05, 2014

BR Research

Call it superstitious, but yesterdays 666-point slide at Karachi Stock Exchange doesn seem too well for the market. The 2.2 percent fall yesterday-the biggest single-day fall since September 30, 2013, probably hurt a lot of sentiments or egos or both. Thankfully though, those who followed this column on July 18th probably avoided getting their fingers burnt.

Recall that last month, the day after KSE-100 finally managed to cross the 30,000 mark, this column maintained that crossing the so-called 30-k psychological barrier wasn the break out moment investors were waiting for.

"Technical charts suggest that the current spike market will likely lose steam around 30,500- 600," this column asserted in the article titled Whats next for the stock market? published on July 18. By July 24, the benchmark index hit an intraday high of 30,640, and has been receding since then, culminating into a huge downfall yesterday.

Back then, market pundits were touting Moodys ratings as something of a trigger that would push KSE to the stars through the skies. But, what they overlooked in their excitement is the gathering storm on the political front.

Or perhaps the downplaying of political noise was intentional: i.e. paint a rosy picture, push the market higher, dispose off the stocks--mostly to clueless foreign players (who were reportedly rather frantic yesterday)-and wait for the market to tank again.

According to NCCPL data, foreign portfolio investors bought $28 million worth of equities during the six trading sessions between July 18 and 28, whereas local mutual funds bought about $9.8 million on net basis. In contrast, banks/DFIs, companies and local individuals were net sellers with an outflow of $2 million, $3.5 million and $7 million, respectively.

Now, as the index approaches its 30-day moving average, it may find some feet around 29,000 levels, though given the short covering of about 64 million shares from yesterdays lows, a short- lived rebound is possible.

Following that, the index can be expected to show dicey movements as views, perceptions and opinions are divided over whats going to happen on August 14. Whosoever is sure of whats going to happen is either the puppet master himself or just acting like an over confident Mr- know-it-all.

Rest of the average Joes who don want to invest hard earned monies on mere hunches and political op-eds would best stay on the sidelines and selectively capitalize at the dips. First of

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PLP NEWS ALERTS EMAIL No. 177-2014 those support can be expected around early 27,000 points. If that support doesn hold, then there would probably be no stopping till late 21,000. And this is why yesterdays close smells devilish. Political motives keep inflation in check

August 05, 2014

BR Research

A 10-month low inflation could not have come at a better time for the politically-embattled government. The latest numbers reveal CPI for July 2014 at 7.88 percent, despite the Ramazan factor. Yes, some of it is a result of active price administration and softening commodity prices, but the government wouldn mind as long as the good news keep coming in times of dire need.

As has been the case of late, perishable food items continue to dictate the trend along with the quarterly revision in house-rent sub-index. All else was business as usual. Could the inflation have been higher? Yes. But then peak summers, massive political pressure and a realistic existential threat looming over the government are enough reasons to keep aside economically rational decisions for a while.

For the third month running, government refused to pass on the impact of increased oil prices. The hit has been taken on the revenue side in the Petroleum Levy account--a practice which has become sort of a political ploy to give a false impression of government providing subsidy on fuel. It is just the beginning of the fiscal year--the best time to let go revenue in times of such heat--both literally and politically.

How long can this go on? Another two to three months can be easily passed taking the hit on levy rather than passing on the impact. But, that is assuming oil prices do not shoot drastically. Latest oil price estimates may send worrying signals as unrest in Iraq and diminishing global oil inventories may soon send oil prices north.

Don forget another round of power tariff rationalisation should be round the corner, if one goes by the IMFs books. Gas price revision, too, has long been pending, and it has to take place some time. Both of them have sizable inflationary impacts.

So, enjoy the single-digit CPI till it lasts. The CPI numbers would matter little, if the inevitable keep getting delayed. Remember, passing the buck had wrecked havoc in 2008. One hopes, the mess does not reach that magnitude and economic rationale prevails in Islamabad.

======July - 2014 CPI - Key items ======YoY (%) MoM (%) ======General 7.88 1.70 Food & bev 6.20 2.79 Non-persishable 5.09 0.49 Perishable 11.95 15.71 Clothing & footwear 10.03 1.23

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PLP NEWS ALERTS EMAIL No. 177-2014 "Housing, water, electricty, gas & fuels" 8.94 1.23 Transport 5.06 1.59 ======The return of the consumer

August 05, 2014

BR Research

To give credit where its due, FY14 saw the PML-N government giving credit where it was long overdue: the private sector. With government borrowing from the central bank and from commercial banks screeching to their lowest levels in recent memory, private sector credit off- take took off last year.

According to the central banks recently released full-year numbers, loans to private sector businesses stood at Rs297 billion in the last fiscal year. Not only is this number the highest annual off-take since FY08; compared to the average annual private credit off-take of Rs72 billion in the last five years, last years performance is indeed phenomenal.

The growth mainly came from businesses in the manufacturing sector, which borrowed about Rs187 billion (all numbers on net basis) in FY14, as against Rs59 billion the year before. A bulk of this increase came from food and beverages products that alone contributed about 55 percent of the incremental manufacturing sector borrowing over previous year.

Food and beverages segment took loans of Rs97 billion in FY14, compared to Rs26 billion in the year before. In contrast, textile sector loans stood at Rs43 billion in the last fiscal year. This, compared to the borrowing of Rs24 billion in the year before, is quite a bit of growth, though the growth is not as much as in other sectors such as food and beverage. Also, its not as if that textile credit in FY14 was at multiyear high; the sector had borrowed Rs44 billion just two years ago.

Other credit drivers included the commerce and trade sector (import/export and retail and wholesale), where borrowings rose to Rs16 billion in FY14 as against an average annual net credit retirement of about Rs8 billion in the preceding five years. Another major credit driver was the telecom sector, where spectrum auction-related borrowing was the biggest highlight of the year.

The common theme to all this is rise of the consumer, which also sits well with the increases in consumer financing. While net retirements by the house-building segment has almost come to a halt (with net borrowing of Rs300 million in FY14), borrowings for auto sector and personal financing have been on the rise for the second year running. Whether these green shoots will mature further this year and after may depend much on the countrys political landscape.

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PLP NEWS ALERTS EMAIL No. 177-2014 E-trade for SMEs

August 05, 2014

BR Research

Pakistani SMEs may have multiple business issues, but finding buyers and sellers online shouldn be a big deal for them. After all internet is now available in all major cities and more and more people are taking to online communication. But a latest EIU-eBay report shows that SMEs need more than internet access and entrepreneurial flair to thrive in conducting cross-border online trade.

The EIU has developed an e-trade readiness index that quantitatively measures the extent to which the G20 countries have so far encouraged internet-enabled international trade for their businesses. The five areas studied for the 19 representative economies are given in the illustration, along with the top-five rankings for both overall index and the individual areas.

Showing strength in nearly all sub-components, Australia is leading the pack in e-trade readiness index, with a score of 67.5. The report notes that Australia has affordable internet access, high smartphone penetration, e-commerce framework conducive and high reliance on e-payments. It is interesting to note that the index has three island nations in top five--Australia, UK and Japan-- suggesting the greater significance of the ease of cross-border trade for these countries.

The BRICS block is also figured in the study. Top among them is China at number 9, followed by Brazil (13), South Africa (14), Russia (16) and India (17). BRICS have fared poorly overall, as only one of them, China, is among top-five in the G20 in just one of the five indicators. It shows that even though ICT access is at a reasonable level in these economies, BRICS have their work cut out in reforming their outdated regulatory frameworks and cumbersome commercial environments.

"It is clear that technology alone is not enough to allow ICT-enabled trade to reach its full potential. Instead, trade flourishes in countries where the overall investment climate is positive, where there is widespread and high-quality Internet access and people with the skills to take advantage of this, and where the regulatory and legal frameworks and environment for e- payments are well developed and up to date," the report firmly noted.

Things are improving overall, but the report notes significant challenges to e-trade, which seem relevant to the Pakistani market as well. The report notes that customs regimes are built to facilitate big businesses, which hurt small businesses that need to efficiently move their low- volume, low-value orders across borders.

Then there is the low prevalence of online payment systems like e-payments and m-payments. Some governments tend to become protectionist when it comes to e-trade and clamp down on the online trade due to threats to data privacy and cyber-security.

Pakistan is gradually closing its ICT infrastructure gaps, but there is more to be done in scope. The government needs to work together with the chambers of commerce to encourage the SMEs to opt for e-trade to find small markets overseas. Action will attract attention; so, it must simplify

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PLP NEWS ALERTS EMAIL No. 177-2014 the customs procedures to make them SME-friendly. Export-oriented tax breaks can be introduced. A fast-track SME lane at customs can be created to expedite the small shipments. Some handholding here may go a long way to build a solid base for the economy.

======Top five countries in e-trade readiness index ======Rank Overall Investment Internet Intl trading Regulations E-payments climate environment environment and policies ======1 Australia US South Korea South Korea Germay Canada 2 US China Australia UK UK Australia 3 South Korea Australia Germany Japan Canada UK 4 UK Brazil US Germany Australia US 5 Japan Canada Japan US France South Korea ======The G20 e-Trade Readiness Index - July 2014 (EIU. eBay) ======

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PLP NEWS ALERTS EMAIL No. 177-2014 Crime Updates No case: Court discharges men detained under Section 144

By Our Correspondent

Published: August 5, 2014

KARACHI:

Nineteen people detained on charges of violating the ban imposed to prevent citizens from going into the sea were discharged by a district and sessions court on Monday.

Mumtaz Ali Solangi, a judicial magistrate in district south, discharged the suspects after charges of violating the ban could not be made against them.

The suspects complained that they did not violate the ban and the police had arrested them from Sea View and its surrounding areas.

The suspects said that the roads leading to the Clifton beach were blocked and the police detained them from the roads nearby.

The police had apprehended the suspects on Sunday in connection with defying the ban imposed under Section 144 (power to issue order absolute at once in urgent cases of nuisance or apprehended danger) of the Criminal Procedure Code.

The suspects were booked under Section 188 (disobedience to order duly promulgated by public servant) of Pakistan Penal Code and on Monday the police produced them before the court for taking their remand.

The judge, however, discharged the suspects after the case could not be made against them.

Published in The Express Tribune, August 5th, 2014. Rangers arrest 12 suspects from Karachi

KARACHI: Rangers today claimed to have arrested as many as twelve suspects, in ongoing targeted operation. According to the Rangers’ spokesman, the suspects were arrested from Old Golimar area of the city. The suspects were shifted to unknown location for further interrogation.

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PLP NEWS ALERTS EMAIL No. 177-2014 17 arrested in Lahore

LAHORE: CIA Civil Line police arrested seventeen accused involved in heinous crimes including murders, robberies and thefts. The arrested including Ghulam Dastaghir, Ameen, Jameel, and Najaf were wanted by police in various cases of heinous nature. Ghulam Dastaghir had killed a policeman in Shahdara. Faisalabad: 2 policemen arrested for cloaking MPA’s criminal record

FAISALABAD: Two policemen, including an Assistant Sub-Inspector, were arrested today on suspicions of colluding with PML-N MPA Rana Shoaib Idrees, who is facing charges of attacking a local police station.

Idrees had forced his way to Kharianwala Police Station and beat up several policemen. He managed to free his accomplices from the lock-up on gun-point in a similar incident last month. An inquiry had begun against the MPA and his past record was summoned by the officials. Taking notice of the missing record, CCPO ordered the arrest of ASI Omar Daraz and Registrar Ghazanfar. Rawalpindi: 5 criminals arrested; fake currency siezed

RAWALPINDI: The Rawalpindi police in its drive against the anti-social elements have arrested five lawbreakers, besides recovering 14 bottles of liquor, two illegal pistols and fake currency notes from them.

According to a police spokesperson, the Cantt police netted a man for having four bottles of liquor, while the Gujar Khan police nabbed another accused for having 10 bottles of liquor. Simlarly, the Wah Cantt police arrested a man for having a 30-bore pistol and three rounds, while the Gujar Khan police also held another accused after recovering a 30-bore pistol and three rounds from him. The Pir Wadhai police arrested a man for having five fake currency notes of Rs 1,000 each. Shahdadpur: Youth rapes a mentally disabled girl

SHAHDADPUR: A youth raped a 12-year-old mentally retarded girl today. A young boy took away the girl, in a house at Noorabad colony in the town and raped her.

On hue and cry by the girl, neighboring area people came out, captured the youth, beat up him, and handed over him to police. The girl was sent to Taluka Hospital Shahdadpur for medical

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PLP NEWS ALERTS EMAIL No. 177-2014 checkup, where doctors confirmed her rape case. The police have registered the case and started further investigation. Rawalpindi: Police arrest 12 outlaws, recover drugs, weapons

RAWALPINDI: Rawalpindi police on Friday arrested 12 outlaws and recovered drugs, weapons, bottles of liquor from their possession. According to police spokesman, the Rawat police arrested Sagheer Anjum and recovered 1230 grams of marijuana from his possession while Waris Khan police held Kamran and recovered 3 bottles of liquor from his possession.

Gujar Khan police arrested Abdul Khaliq and recovered 15 bottles of liquor from his possession. Rawat police nabbed Ijaz and recovered 2 bottles of liquor from his possession. Cantt police held Rizwan and recovered 3 bottles of liquor from his possession. Pirwadhai police arrested Irfan and recovered pistol 30 bore along 4 round from his possession. Gujar Khan police held Saleem and recovered pistol 30 bore along 5 round from his possession. Police has registered separate cases against all of them and started investigation. Rawalpindi: 17 lawbreakers, 10 gamblers arrested

RAWALPINDI: The police under its ongoing drive against the anti-social elements have arrested 17 lawbreakers, including 10 gamblers and a drunkard, besides recovering 1,550 grammes of charas, 15 bottles of liquor, and two pistols of 30 bore with five rounds from the possession of the arrested accused.

According to the Rawalpindi police spokesperson, the Sadiqabad police netted a man for having 1,550 grammes of charas. The Wah Cantt police nabbed two others for possessing eight bottles of liquor while the Murree police rounded up another accused and recovered seven liquor bottles. The Waris Khan police sent behind the bars a drunkard who was allegedly under the influence of alcohol. The Pir Wadhai police arrested two others for carrying illegal pistols of 30-bore.Meanwhile, the Waris Khan police, acting on a tip-off conducted a raid in Fazalabad and held 10 persons, who were involved in betting while playing cards. The police also recovered cash worth Rs 40,000 stake money, nine mobile phones, and other items from them. On the other hand, the Shehzad town police have arrested three dacoits through prompt action who had injured a citizen during an attempt to snatch cash and mobile from the people after making them hostage at a workshop near Shakrial. The police was immediately informed after the incident and the policemen rushed to the scene, following directions from the SP (Rural). They cordoned off the area and succeeded to arrest three dacoits, while the injured person was shifted to the Pakistan Institute of Medical Sciences Hospital. The police have obtained four-day physical remand of the nabbed persons who are being investigated further. The SP has said that the police team is conducting raids to arrest the other accomplices of these dacoits who are involved in such incidents.

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PLP NEWS ALERTS EMAIL No. 177-2014 Miscellaneous News Islamic banking: SBP to have Islamic finance sections

By Our Correspondent

Published: August 5, 2014

KARACHI:

State Bank of Pakistan (SBP) Deputy Governor Saeed Ahmad said on Monday he prays for the replacement of conventional banking with Islamic banking in Pakistan.

Speaking at the launching ceremony of the Introductory Booklet on Islamic Mode of Financing at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the deputy governor said the central bank will soon have dedicated Islamic finance sections in all its departments.

“It is necessary to create awareness (about Islamic banking) among the masses,” he said, adding that its share in Pakistan’s overall banking industry can become as large as 30%.

Deposits of the Islamic banking industry stood at Rs872 billion at the end of the first quarter of 2014, up 23.8% from March 2013. The market share of Islamic banking industry’s deposits in the overall banking industry stood at 10.7% in March, up 1% from the market share of 9.7% one year ago.

“We are working with universities to develop courses for Islamic finance … it will produce a good work force for Islamic banking. Oman, Dubai and many other countries are already hiring Pakistani human resources (for their Islamic banking operations),” Ahmad added.

Noting that the SBP has played a key role in the promotion of Islamic banking in Pakistan, the deputy governor said the central bank has been one of few regulators in the world to issue a comprehensive framework for the development of this sector.

Published in The Express Tribune, August 5th, 2014.

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PLP NEWS ALERTS EMAIL No. 177-2014 Building a case: Construction industry needs support pillars, says ABAD chairman

By Our Correspondent

Published: August 5, 2014

KARACHI:

Apart from security concerns, unclear government policies are also creating problems for the construction industry in drawing domestic and foreign investment in the country, Association of Builders and Developers of Pakistan (ABAD) Chairman Mohsin Sheikhani said on Monday.

“Supportive government policies could bring huge investments in the construction sector, which can create millions of new jobs for skilled and non-skilled workforce,” Sheikhani said this while speaking to a press conference here at ABAD House.

Local builders and developers have invested billions of rupees in the last one year and are continuing investments in housing projects. Even a little government interest in terms of streamlining decades old policies can help bring more investments into this important sector, he added.

Unlike Pakistan, governments all over the world give special attention to the housing and construction industry because of its backward and forward linkages to about hundred allied industries. This industry also generates huge employment opportunities not only for skilled but also for unskilled workforce – a special feature why Pakistan with a massive population should develop its construction industry, said Sheikhani.

ABAD, an association of over 700 builders and developers all over the country, is going to organise an international exhibition from August 12 to 14 at Karachi Expo Centre.

The representatives of the association believe that after the 18th Amendment, federal and provincial policies are quite opposite to each other due to which the housing industry, town planners, engineers and builders are facing problems. These policies are hampering the development of the industry.

Despite having one of the lowest costs of construction in the world, Pakistan has a housing backlog of over 8 million houses. This housing shortage will only increase if uncertain and unfriendly government policies are not going to change in the near future, he added.

According to Sheikhani, over 100 ABAD members will be exhibiting and launching their projects during the exhibition. While over 50 foreign companies from 17 countries like Germany, UAE, Turkey, Singapore, Sri Lanka are also going to participate in the exhibition.

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PLP NEWS ALERTS EMAIL No. 177-2014 Replying to a question, he said even 100 projects that are going to be launched are very little in number to meet the housing demand in the country. “I believe even if our members were launching 500 new housing projects, all were expected to get a good response because of the huge housing shortage,” he said.

While speaking to the media, ABAD Senior Vice Chairman Salim Kassim Patel said that the exhibition will also attract local and foreign experts in housing, construction and town planning who will be speaking on the industry issues in Pakistan, South Asia and the world in general.

“It will be a good opportunity for the local industry to learn modern techniques from experts who will be discussing the experiences of different countries,” said Patel.

The leadership of ABAD expects to attract a number of local and foreign builders, real estate developers and construction industry people to this exhibition for which they have been working for over three months.

According to the association’s chairman, this exhibition will be occupying all six halls of the Karachi Expo Centre, making it the biggest ever construction industry event in the country’s history.

Published in The Express Tribune, August 5th, 2014. Rice exports experience miniscule increase

By Imran Rana

Published: August 5, 2014

FAISALABAD:

Rice exports remained almost stagnant in terms of value, as Pakistan earned $1.9 billion in the fiscal year 2013-14 (FY14) against $1.84 billion in the preceding year from the export of basmati and non-basmati rice varieties.

Out of the total rice exports of $1.9 billion in FY14, the share of non-basmati variety was over $1 billion. The country exported 3.37 million tons of rice in FY14, including 2.6 million tons of non-basmati and 750,000 tons of basmati rice. The 3.37 tons of exports fell from the 3.5 million tons in FY13.

The Pakistani basmati rice is in great demand in the United States, Europe and United Arab Emirates. The non-basmati rice is exported to all over the world, with the African states being the major consumers.

The high demanded varieties of basmati include super basmati, 1121-Kayinat, brown basmati, super 2000, 515 and 386, while the irri-6 is the non-basmati in demand.

In terms of quantity, there was an increase of 16% in basmati rice, while there was a 35% value increase in comparison to FY13. The non-basmati rice decreased by 8% in quantity, said Rice

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PLP NEWS ALERTS EMAIL No. 177-2014 Exporters Association of Pakistan’s former vice chairman Taufeeq Ahmad, while talking to The Express Tribune.

The price of the Pakistani basmati rice stood at $1,300-1,400 per ton. Due to a higher demand of Indian basmati rice, which is considered elite in the international market, the price reached $1,600-1,700 per ton. India also possesses the Early Aging Steam System for the production of rice, according to Ahmad.

“The price of non-basmati rice in the international market is $450 to $500 per ton,” said Ahmad. “There is great scope in enhancing exports of the variety.”

Due to high demand in the region, UAE is a key market for Pakistan in terms of rice exports. The former vice chairman said that better branding and packaging is required to compete in such markets.

“The quality of the Pakistani basmati rice is very good in comparison to the Indian one,” said Ahmed. “But India has a better processing procedure when it comes to rice manufacturing.

“They are using the latest technology in processing, packaging and polishing, which is a major reason for their success.”

The prices of 5-kg Indian-label rice bag in the international stores are $8-17 against the $7-11 of the Pakistani equivalent.

Pakistan produced 6.5 million tons of rice in all varieties, of which 3.4 million tons was for exporting purposes.

Published in The Express Tribune, August 5th, 2014. Moving higher: Pakistan Petroleum Limited makes another gas discovery

By Saad Hasan

Published: August 5, 2014

KARACHI:

Pakistan Petroleum Limited (PPL) on Monday announced discovery of 42 million standard cubic feet per day (mmscfd) of gas in the Gambat South block, its third and biggest discovery so far in the particular area.

The company said the exploration well Sharf X-1 was spud on April 18, 2014, and the final depth of 3,730 meters was reached on July 6, 2014. Along with the gas, condensate with flow of 199 barrels per day has also been discovered, reinforcing the commercial viability of the well, the company said.

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PLP NEWS ALERTS EMAIL No. 177-2014 More significantly, PPL said the expected production from the well could go up to 60 mmscfd. “Two additional zones have been identified that will be tested later, resulting in an expected cumulative production of 60 mmscfd, which translates into approximately 7,400 barrels per day in oil equivalent and foreign exchange saving of $0.75 million per day.”

PPL announced two discoveries in the Gambat South block, which is located in Sanghar District of Sindh, last year within a span of two months. Previous wells Wafiq X-1 and Shahdad X-1 had initially yielded 7.4 mmscfd and 27.8 mmscfd of gas, respectively.

“The well is being flowed at different choke sizes to measure the gas flow rates, and the actual flow potential of the well will be determined after completion of the test,” the company said about its latest find.

Government Holdings Private Limited (GHPL) and Asia Resources Oil Limited (AROL) with 25% and 10% working interest are joint venture partners of PPL in the block.

PPL, which has a portfolio of 47 exploration blocks, has been aggressively searching for new hydrocarbon finds since last year to compensate for decrease in production from its established fields like Sui.

Much of the credit for PPL’s decision to intensify search for new reserves goes to former Managing Director Asim Murtaza Khan and his team. Khan retired recently.

State-run PPL had earmarked Rs10 billion to be spent on exploration activities during last fiscal year with most of the focus on Gambat South.

PPL accounts for 22% of the country’s gas production. In the nine months of July-March 2013- 14, PPL posted a profit of Rs38 billion, up 13.4% over the same period in the previous year.

The company has been trying to slow down the depletion rate of its fields by installing compressor plants and drilling more wells.

PPL’s six producing fields include Sui, Kandhkot, Adhi, Mazrani, Chachar and Hala, while it has working interest in eight partner-operated fields.

PPL also has working interest in offshore fields in Iraq and Yemen. But doubts have been raised about its concession in Iraq since militants took over swaths of the country.

Published in The Express Tribune, August 5th, 2014.

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PLP NEWS ALERTS EMAIL No. 177-2014 One-litre containers: Not a very milky way

By Shahram Haq

Published: August 5, 2014

LAHORE:

Food giant Nestle Pakistan’s decision to increase the price of packaged milk has once again led to the shortage of one-litre containers in the open market, leaving consumers to struggle and pay more in some parts of the city.

Nestle has increased the prices of one-litre packaged milk by Rs10 this month, making the official price Rs110. The prices of half- and quarter-litre packs have not been changed.

Other milk processing companies have kept the price at the same level (Rs100). However, retailers maintain that Nestle’s Milkpak is demanded more than Olpers (Engro Food) and Haleeb (Haleeb Foods). They said that shortage of one-litre packs has put increased pressure on smaller packs to fulfil the ever-increasing demand of milk in Pakistan.

The retailers said that prices from the other two competitors could rise as well, with the shortage likely to continue till October.

It is a dilemma for Pakistan that despite being the fifth largest milk producing country – with annual production of around 36 billion litres –consumers are facing acute shortage of milk especially in summers. Due to increasing urbanisation and unavailability, the consumption of loose milk in large cities is on a continuous decline with people shifting to packaged and pasteurised milk to meet daily consumptions.

The processed milk industry’s share is around 5% in total milk production of the country. This industry considers summers as lean months for milk production as per capita animal milk production reduces naturally this time of the year. Fodder availability becomes another issue coupled with stress on the supply chain which leads to an overall shortage.

Lack of scrutiny by the government in the price-increase mechanism of the processors is due to market forces. Packaged milk is essential for every retailer to run their business, and every one of them blames the sole distributors for artificial shortages.

“Only the distributors know when the company will increase the price,” said Shahid Butt, a salesman of a retail shop in Lahore. “What they do is hold the existing stock. That means a hike of Rs10 will result in a lot of undeserved profit.

“The availability of one-litre packs on the outskirts of the city is worse and consumers have to pay extra, on which there is no check by anyone”

Meanwhile, Nestle Pakistan acknowledged supply is not meeting current demand. “We realise that the demand for Milkpak is currently higher than its supply, which has led to sporadic product shortages,” Nestle Pakistan said in a statement.

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PLP NEWS ALERTS EMAIL No. 177-2014 Published in The Express Tribune, August 5th, 2014. Easing the strain: Banking system gets Rs18.6b liquidity injection

By Our Correspondent

Published: August 5, 2014

KARACHI:

The State Bank of Pakistan (SBP) injected liquidity valuing Rs18.6 billion into the banking system on Monday.

According to data released by the SBP’s Domestic Markets and Monetary Management Department, the central bank conducted an open market operation (injection), which resulted in acceptance of the amount of Rs18.6 billion.

The tenor of the open market operation is four days, with the accepted rate of return at 9.93% per annum.

The SBP has injected a cumulative Rs399.2 billion in five separate open market operations since the beginning of 2014-15 in July.

The heavy injection into the banking system in the last month was mainly due to the liquidity shortage that commercial banks faced in view of Ramazan. People withdrew cash from their bank accounts for Eid shopping in large quantities and also sought fresh currency notes.

To meet the high demand for currency notes, the SBP issued new bills worth Rs154 billion before Eid. About Rs31 billion, or 20% of the total issue, consisted of lower denomination notes of up to Rs100, according to a separate SBP statement released on Monday.

Currency notes of higher denomination worth Rs123 billion were issued for meeting ATM needs of commercial banks. Last year’s total issue of new currency notes stood at Rs139 billion, which translates into a year-on-year increase of 10.8%.

“The SBP Banking Services Corporation (BSC) fully utilised the extensive network of commercial bank branches across the country and issued fresh notes to all banks in good numbers,” the central bank said.

In addition to this, the SBP BSC also established its own counters in 150 designated branches of commercial banks to provide fresh currency notes to the general public. These branches were selected from across Pakistan while ensuring maximum geographical coverage and population, it noted.

Keeping in view the higher demand for fresh bank notes before Eid, all 16 field offices of the SBP also issued new notes to the general public during the last three working days of Ramazan.

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PLP NEWS ALERTS EMAIL No. 177-2014 Published in The Express Tribune, August 5th, 2014. Power generation: Ishaq Dar wants provinces to pay up

By APP

Published: August 5, 2014

ISLAMABAD:

Finance Minister Ishaq Dar has asked the Ministry of Water and Power to ensure payments by provinces and reconcile outstanding amounts within 60 days as per the decisions taken by the Council of Common Interests (CCI) in its last meeting.

He expressed hope that the ministry would be able to frame policies with the aim to improve situation on both short- and long-term basis.

The minister was chairing a meeting on ‘Pakistan Power Sector Investment Prospects’ at the finance ministry. The meeting discussed both immediate and long-term demand and the generation capacity of the country.

Currently, there is a shortfall of 4,000 megawatts (MW) in power generation and with the future prospects of increased growth rate; the demand will further increase in the next five years. It was noted that with projects in the pipeline, the country would need to set up cheaper fuel-based energy projects to overcome the energy shortage.

“We must be realistic and pragmatic at the planning stages and frame our policies for investment,” said Dar.

He emphasised on improving the energy mix to bring down generation price. He underlined that instead of furnace oil-based power projects the country should focus on hydel and coal-powered ones.

He added that international investors, including Chinese companies, were interested in financing energy projects.

Minister for Water and Power Khawaja Asif informed the meeting that the ministry had improved during the last one year in all aspects of power, including generation, transmission, distribution and recovery.

With the focus of political leadership on cheaper fuel-based power, the power mix would improve significantly, he added, and assured that the priority list for future projects would be determined by keeping in view the right energy mix.

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PLP NEWS ALERTS EMAIL No. 177-2014 Finance Secretary Dr Waqar Masood, secretaries of water and power, planning and development, and Economic Affairs Division, and senior officials of the finance ministry also attended the meeting.

Published in The Express Tribune, August 5th, 2014.

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PLP NEWS ALERTS EMAIL No. 177-2014

OPEN MARKET FOREX RATES Updated at: 5/8/2014 7:18 AM (PST) Currency Buying Selling Australian Dollar 91.35 91.6 Bahrain Dinar 262.15 262.4 Canadian Dollar 89.75 90 China Yuan 15.8 15.95 Danish Krone 17.7 17.85 Euro 132 132.25 Hong Kong Dollar 12.55 12.7 Indian Rupee 1.62 1.67 Japanese Yen 0.966 1.02 Kuwaiti Dinar 349.35 349.6 Malaysian Ringgit 30.5 30.75 NewZealand $ 84.25 84.5 Norwegians Krone 15.7 15.85 Omani Riyal 256.7 256.95 Qatari Riyal 27.1 27.35 Saudi Riyal 26.15 26.4 Singapore Dollar 78.5 78.75 Swedish Korona 14.2 14.35 Swiss Franc 109.15 109.4 Thai Bhat 3.01 3.06 U.A.E Dirham 26.75 27 UK Pound Sterling 165.5 165.75 US Dollar 98.75 99

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PLP NEWS ALERTS EMAIL No. 177-2014

INTER BANK RATES Updated at: 5/8/2014 7:18 AM (PST) Bank Buying Bank Selling Currency TT Clean TT & OD Australian Dollar 91.74 91.92

Canadian Dollar 90.09 90.28

Danish Krone 17.72 17.75

Euro 132.1 132.37

Hong Kong Dollar 12.70 12.72

Japanese Yen 0.9587 0.9606

Saudi Riyal 26.24 26.29

Singapore Dollar 78.96 79.12

Swedish Korona 14.34 14.37

Swiss Franc 108.57 108.79

U.A.E Dirham 26.79 26.84

UK Pound Sterling 165.57 165.9

US Dollar 98.4 98.6

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PLP NEWS ALERTS EMAIL No. 177-2014 Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) As on Tue, Aug 05 2014, 04:00 GMT PKR PKR PKR Metal Symbol for 10 Gm for 1 Tola for 1 Ounce

Gold 24K XAU 40,945 47,707 127,355

Palladium XPD 27,231 31,729 84,700

Platinum XPT 46,493 54,172 144,611

Silver XAG 642 748 1,996

Gold Rates in other Major Currencies 1 Currency Symbol 10 Gm 1 Tola Ounce Australian

AUD 444 518 1,382 Dollar Canadian

CAD 452 527 1,406 Dollar

Euro EUR 309 360 960

Japanese

JPY 42,506 49,527 132,211 Yen U.A.E

AED 1,522 1,774 4,735 Dirham UK Pound

GBP 246 286 764 Sterling

US Dollar USD 414 483 1,289

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

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PLP NEWS ALERTS EMAIL No. 177-2014 Gold Rates & Silver Rate from major cities of Pakistan

A year by year reference of the daily Silver Price in Pakistan and history of Gold Rates in Pakistan Aug 04, 2014

Following table shows gold rates per Tola in Pakistan in Pakistani Rupess (PKR) in 24 carat per 10 Grams, 22 carat per 10 grams and sliver rates per 10 grams in pakistan.

City 24k per 10gm 24k per Tola 22k Per 10gm 21k Per 10gm Silver Karachi 41,485 48,400 38,028 36,299 643 Lahore 41,485 48,400 38,028 36,299 643 Multan 41,485 48,400 38,028 36,299 643 Faisalabad 41,485 48,400 38,028 36,299 643 Rawalpindi 41,485 48,400 38,028 36,299 643 Hyderabad 41,485 48,400 38,028 36,299 643 Gujranwala 41,485 48,400 38,028 36,299 643 Peshawar 41,485 48,400 38,028 36,299 643 Quetta 41,485 48,400 38,028 36,299 643 Islamabad 41,485 48,400 38,028 36,299 643 Sargodha 41,485 48,400 38,028 36,299 643

Source: Karachi Saraf.

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