Sunday, October 31, 2010
Iran to sue over European refusal to refuel planes: airline
TEHRAN: Iran is taking legal action in The Hague against global oil majors who are refusing to refuel its Europe-bound flights under US pressure, a top aviation official said on Saturday.
“Iran, through appropriate channels, is taking legal measures and the issue has been raised in The Hague tribunal and lawyers have been appointed to pursue the issue,” Farhad Parvaresh, chief executive of state carrier Iran Air, was quoted as saying on official news agency IRNA.
He did not specify before which court in the Netherlands the suit was being lodged.
Dubai attracts property investors again
Property dealers, bankers and exchange companies said millions of dollars had been transferred to Dubai during a year, while dozens of Pakistanis left the country fearing loss of life and property.ve this city to protect their life and property.
US stocks’ week of reckoning arrives
The US stock market has priced in the Republicans gaining ground in Tuesday’s midterm elections, an outcome widely seen as more business-friendly, as well as the Federal Reserve pumping billions into the economy through Treasury debt purchases. The Fed’s statement on Wednesday afternoon at the end of its two-day policy meeting is widely anticipated for details of the central bank’s economic stimulus plan.
Jobs will be a touchstone, with the high US unemployment rate figuring into the campaign rhetoric of Democrats and Republicans alike in the midterm elections.
KSE investors to focus on meetings with IMF
“As the result season is coming to its close, investors will look towards new triggers, particularly on economic and political front,” said Saeed Khalid, an analyst at Invest Capital. “Moreover, the upcoming Eid season is expected to drain the investment from the market, but foreigners’ interest will play a key role for the market to sustain the current levels.”
E&P sector profits grow by 43.4pc
The listed E&P sector revenues increased by a significant 33 percent to Rs64.5 billion, primarily on account of favourable prices and volumetric growth.
On the price front, prevailing concerns over global economic recovery and consistent demand from the emerging economies translated into strengthening of metals, currencies and commodities during the period, it said.
This also resulted in Arab Light crude oil prices going up by 7.1 percent to an average around $74 per barrel, while augmenting further in the rupee terms by four percent.
The rise in the crude oil prices also reflected positively on the companies’ gas wellhead prices.
Industries to shutdown in protest against power cuts
The decision was taken at a joint meeting of the associations of the six industrial zones of Karachi, which took place at Korangi Association of Trade & Industry (KATI) on Saturday.
Chairmen of SITE Association of Industry, North Karachi Association of Trade & Industry, Federal B. Area Association of Trade & Industry, Landhi Association of Trade & Industry, Korangi Association of Trade & Industry, and SITE Super Highway Association of Trade & Industry represented their associations at the meeting besides others.
Policy-level talks with IMF to begin tomorrow
Federal Finance Minister Dr Abdul Hafeez Sheikh and SBP Governor Shahid Hafeez Kardar will lead the Pakistani side, while the IMF’s delegation will be headed by Adnan Mazarei, mission chief for Pakistan. The policy level talks, officials said, would continue for two to three days.
During the technical level talks, Pakistani and IMF officials finalised targets of real GDP growth at 2.8 percent, inflation at 14.5 percent, current account deficit at minus 2 percent and FBR’s revenue collection at Rs1,689 billion provided the government took additional measures such as imposing flood tax and abolishing sales tax exemptions.
Friday, October 29, 2010
Apple beats Blackberry maker in quarterly smartphone sales
Industry tracker IDC said Apple sold 14.1 million iPhone units in the third quarter while Canada’s Research in Motion shipped 12.4 million Blackberry devices.
“The company’s record shipment performance can be attributed to the introduction of the iPhone 4 in 17 new countries last quarter,” said the International Data Corporation (IDC).
Asian markets fall on US wariness, Japan economic data
Delegates from nearly 200 countries have gathered in Nagoya, Japan, for a two-week meeting to map out goals to protect oceans, forests and rivers as the world faces the worst extinction rate since the dinosaurs vanished 65 million years ago.
The meeting has aimed to push governments and businesses into taking sweeping steps to protect ecosystems long taken for granted but are worth trillions of dollars by providing sources for food, water, tourism and industry.
IMF power deal sealed after US dropped trade links
US Treasury Secretary Timothy Geithner introduced the idea of tying actions to bring about a better-balanced global economy to more International Monetary Fund voting power during meetings of the Fund in Washington last month.
Geithner fleshed out his proposal in a letter to finance ministers of the Group of 20 nations in which he pressed for a deal to limit current account surpluses and deficits to a specified share of national output.
NetSol to highlight floods at NASDAQ
According to the statement, Chairman NetSol Technologies, Najeeb Ghauri, will lead the closing bell ceremony at the exchange in the presence of 40 entrepreneurs from the corporate and NGO world. Similar opportunity was earlier extended to a Pakistani foreign mission, it added.
“The event is being organised to win the hearts of world community so that they extend more help to 20-million flood victims in Pakistan,” said Salim Ghauri, Chairman NetSol Pakistan, the first Pakistani IT company listed on NASDAQ.
JP Morgan buys majority stakes in Brazil’s Gavea
The New York-based bank, which made the purchase through its hedge fund Highbridge Capital Management, did not disclose details of the transaction. But Brazilian media said it would pay about $270 million for a 55 percent stake and an option to buy the remaining 45 percent in the next five years.
Gavea is a mid-sized fund firm that is co-owned by former Brazilian central bank chief Arminio Fraga, one of the best-known names in the country’s bustling financial world.
Group of OGDCL officials accused of favouritism
“The OGDCL officials are making all efforts to award contracts for unnecessary procurement” worth more than Rs178 million rupees, said the report written by a senior OGDCL official.
They want to purchase two vacuum trucks at a total cost of Rs130 million (Rs65 million each) and a mini-cementation lab costing around Rs48 million to IE Services, said the report, available with The News.
The report pointed out fraudulent deals of billions of rupees for the supply of chemicals and other materials to OGDCL by IE Services.
It made stunning disclosures about a group of officials violating company rules to provide opportunities to IE Services for securing supply contracts.
Oil firmer
By 0930 GMT, US crude for December gained 17 cents to $82.11 a barrel, after falling nearly 1 percent on Wednesday, while ICE Brent was 22 cents firmer at $83.45.
Investors awaited the latest weekly reading of US unemployment figures due at 1230 GMT for clues about the health of the world’s largest oil consumer, and ahead of the anticipated second monetary stimulus package (QE2).
Rupee strengthens
The rupee gained nine paisas to close at 85.85 to a dollar in the inter-bank market from the previous day’s close of 85.97.
“Traders show reluctance to buy greenback on the hope that the foreign currency’s value may further go down,” a dealer said. The rupee is stable against the dollar during the ongoing month after it registered a decline to a historic low of 86.32 early this month on heavy demand for the dollar for import payments.
The inter-bank forex market started the day in the range of Rs85.93 and 85.97. The dollar witnessed deterioration throughout the day as it registered a high of Rs85.93 and a low of Rs85.85. Currency experts said that the dollar demand would rise early next month as import for oil payments is due. However, the inflows of home remittances and export receipts would help the rupee maintain its current levels, they added.
Increase in floods loss estimates drags KSE down
“Intense profit-taking was witnessed at the local bourse as World Bank and Asian Development Bank raised flood loss estimates to $16 billion,” said Ahsan Mehanti, a director at Arif Habib Investments.
The KSE 100-share index lost 69.17 points, or 0.65 percent, to close at 10,634.99 points. The KSE 30-share index shed 67.76 points, or 0.66 percent, to end at 10,201.18 points.
Shares of 407 companies were traded, out of which 176 advanced, 209 declined, while 22 remained unchanged.
Major Companies Declare Results
Last year, the company’s profits stood at Rs2.7 billion with an EPS of Rs8.25.
The major growth drivers were its fully-owned fertiliser entity, Engro Fertiliser Limited and trading subsidiary, Engro Eximp businesses, posting profits of Rs2.9 billion and Rs989 million, respectively, it said.
PSM aims to earn profits by June
“The PSM has been working at 50 percent capacity; it will reach 75 percent by the end of December 2010; 90 percent by March 2011; and 100 percent by June 2011,” he said.
He said he had assured the dealers that no action would be taken against them by the FIA. They wanted to keep away from PSM owing to the ongoing investigation, he said, adding that written assurance would also be provided to the dealers about the FIA investigation. He said PSM had asked FIA officials to restrict their investigation to the period when the matter under probe came to light. “The FIA officials also promised not to harass anyone and keep their investigation to that period,” he said.
To a question about the difference in prices of PSM products and the open market, Lodhi said some parties were misusing the SRO of steel raw material import. “They import items more than their requirement, thanks to zero-rated regime, which they later sell in the open market at prices lower by Rs2,000 to Rs4,000 per ton than PSM prices.”
KSE AGM lashes out at Afridi-led management
Members discussed in detail the remuneration packages of the management led by Adnan Afridi, the managing director. A member said that traditionally management avoided taking such perks and privileges in fragile economic situation, even if funds were available.
He said that the case was different in KSE where the management took heavy remuneration, allowances and bonuses during the last two years, although revenue had been falling.
Forex reserves dip to $16.88bn
KARACHI: Pakistan’s foreign exchange reserves slipped to $16.88 billion on regular debt payments by the week ended on October 22, the central bank said on Thursday.
The foreign exchange reserves held by the State Bank of Pakistan (SBP) declined to $13.09 billion while those held by other commercial banks came down to $3.79 billion, it said.
Thursday, October 28, 2010
USAID launches assessment, strengthening programme
Inaugurating the project, which will cost $45 million, USAID Chief Financial Officer David Ostermeyer expressed the hope that the programme would be helpful in ensuring the spending of the USAID funds on various projects.
FBR initiates study of 15 sectors to identify tax gap
“The revenue body has selected 15 leading sectors where wide tax gap is identified through preliminary analysis,” the official said on the condition of anonymity. The sectors to be analysed included oil and gas, automobiles, cigarette and tobacco, iron and steel, chemicals, paper and paper board, textile, edible oil, cement, sugar, pharmaceuticals, fertiliser, telecom, finance and insurance, and hotels and restaurants.
Reshuffling at Karachi bourse on the cards
KARACHI: A large-scale reshuffling is anticipated at the higher offices of the Karachi Stock Exchange (KSE) as with the change of guards, the team setup by Managing Director Adnan Afridi would be left leaderless, a KSE member said on Wednesday.
“I believe that the new chief executive would hardly continue with the lucratively paid team setup by the managing director, which also includes his relative,” the member said requesting anonymity.
The KSE managing director has finally decided to step down and tendered his resignation a few days before the expiry of his term as the continuation at the same office was not on the agenda.
DGKC profits plunge by 94pc
The profits of DG Khan Cement (DGKC) declined by 94 percent to Rs22 million for the quarter ended on September 30 against Rs395 million during the same quarter last year, a company statement said on Wednesday.
The earning per share stood at Re0.06 against Rs1.08 last year. The company did not announce any payout. Net sales arrived at Rs3.5 billion, down by 23 percent, primarily due to lower dispatches owing to floods.
HBL announces EPS of Rs11.27
Habib Bank Limited (HBL) has earned a profit of Rs11.3 billion and an earning per share of Rs11.27 for the nine-month period ended on September 30, a bank statement said on Wednesday.
During the same period last year, the company’s profits stood at Rs10.6 billion and an EPS of Rs10.55, thus, the profitability surged by seven percent.
During the quarter ended on September 30, the bank recorded earnings of Rs3.9 billion, translating into an EPS of Rs3.86, an increase of one percent over the corresponding quarter last year, it said.
Lengthy procedures delaying IP gas pipeline
KARACHI: Work on Iran-Pakistan (IP) gas pipeline faces continuous delay because of lengthy procedures, an official said on Wednesday.
The government was to award consultancy contract for the billion-dollar pipeline to Munich-based ILF Consulting Engineers a month ago, which would have marked the first step toward its construction. Documents for the contract were finally prepared in early September, but they are being redrafted for approval by Petroleum Minister Naveed Qamar and the special steering committee overseeing the project.
Strong results anticipation pushes KSE up
KARACHI: The Karachi share market surged on Wednesday in anticipation of strong financial results by major companies, dealers said. “Positive activity was witnessed as investors await major earnings announcements this week,” said Ahsan Mehanti, a director at Arif Habib Investments.
The KSE 100-share index gained 46.01 points, or 0.43 percent, to close at 10,704.16. The KSE 30-share index rose 39.14 points, or 0.38 percent, to end at 10,178.53. Shares of 370 companies were traded, out of which 214 advanced, 138 declined, while 18 remained unchanged.
Govt to launch Ijara Sukuk bonds next month: official
KARCHI: The cash-hungry government has planned to raise Rs35 billion by issuing Ijara Sukuk bonds in the domestic market next month, which will be used to finance fiscal deficit, a top finance ministry official said on Wednesday.
“Everything is ready and we are all set to go with it in November,” the official said on the condition of anonymity. He said the launch was originally planned for June but got delayed owing to a few ’snags’, he said without giving details.
Obama to focus on jobs, economy on India visit
WASHINGTON: President Barack Obama will argue that India’s emerging might can help speed the US economy’s slow crawl out of crisis on a state visit next month packed with business-themed events.
After an expected rebuke from voters in mid-term elections, and with few economists predicting a quick return to soaring US growth, Obama will speak as much to Americans as the population of India on his three-day visit.
“We’re talking about the fastest-growing economic region of the world and our ability to interact with it, to sell our goods and our services,” said White House spokesman Robert Gibbs previewing Obama’s trip on Wednesday.
France's parliament approves pension reform
The 336-233 vote in the National Assembly on Wednesday was a victory for conservative President Nicolas Sarkozy, who has stood firm despite the protests _ a stance that has resulted in his lowest approval ratings since he took office in 2007.
The opposition Socialist party, which spearheaded the parliamentary battle against the bill, called its passage ”a great disappointment for the French people, who overwhelmingly rejected this … profoundly unfair text.”
Protesters aren’t yet giving up the fight, since Sarkozy hasn’t yet signed the bill. In an attempt to revive a protest movement that has lost momentum, unions plan a new nationwide day of street demonstrations and strikes Thursday that are expected to cause travel problems.
A two-week train strike has been tapering off, and only a small number of trains were to be canceled Thursday.
Some striking refinery workers have returned to the job, but French drivers are facing substantial fuel shortages: As of Tuesday evening, about one gas station in five was still closed, with the worst problems around
Striking dock workers have exacerbated the fuel shortages. Oil tankers are lined up in the Mediterranean as far as the eye can see off the
Unions see retirement at 60 as a cornerstone of
Millions of people have marched against the plan, and strikes and protests have caused travel chaos, school closures and fuel shortages for weeks.
Prime Minister Francois Fillon said ”the vigor of the debate was legitimate, but everyone must now accept the law of the Republic.”
But Bernard Thibault, who heads the hardline CGT labor union, told Liberation newspaper that the battle wasn’t over yet. Another national day of street protests is planned for Nov. 6.
”Until the bill becomes law, we will continue to fight,” he said.
The opposition Socialists plan to challenge the bill’s constitutionality before a special council. Sarkozy must wait for the council’s approval before he signs it, a step expected in mid-November.
Retirement reform is a traditionally touchy subject in
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Wednesday, October 27, 2010
SBP’s gloomy report brings KSE down
KARACHI: The Karachi share market ended lower on Tuesday following the central bank’s forecast of lower economic growth and higher fiscal deficit, dealers said.
“Selling activity was witnessed†in the overbought market as the State Bank of Pakistan report indicated fiscal deficit rising to 6.3 percent of GDP in FY10 and GDP growth falling to 2-3 percent,” said Ahsan Mehanti, a director at Arif Habib Investments.
SSGC wants industries to reduce gas consumption
KARACHI: Factories and captive power plants in Sindh and Balochistan would shut down from Wednesday if consumption was not immediately reduced, Sui Southern Gas Company (SSGC) warned on Tuesday.
It said supply from some of the major fields had reduced considerably. Total supply of gas that SSGC buys from petroleum exploration companies has dropped 19 percent to 999 million cubic feet per day (MMCFD) in October from 1197 MMCFD in the same month of last year, said Azeem Siddiqui, SSGC deputy managing director, at a press conference.
Brokers anxiously await judgment on Worldcall’s licence
KARACHI: The leading brokers of the Karachi stock market are desperately waiting for the Supreme Court’s judgment on a petition seeking revocation of the licence of Worldcall Telecom Limited on violation of PEMRA Ordinance.
The leading brokers of the stock market having accumulated large lots of the free float of Worldcall at reasonable discount are anxiously waiting for the SC’s verdict.
As on December 31, 2009, First Capital held 4.221 million ordinary shares of Worldcall and Arif Habib Securities 72.914 million ordinary shares.
OGDC profits surge
KARACHI: Oil and Gas Development Company (OGDC) has announced a net profit of Rs16.709 billion, translating into an earning per share (EPS) of Rs3.89 for the quarter ended on September 30 against a profit of Rs12.065 billion and an EPS of Rs2.81 during the corresponding quarter last year, a company statement said on Tuesday.
The net sales revenue of the company surged to Rs39.451 billion during the period under review from Rs31.825 billion last year.
US to provide $60m for dams
ISLAMABAD: The United States has agreed to finance the under-construction Gomal Zam Dam and Satpara Dam and also pledged to encourage its private sector for investment in the energy sector of Pakistan, an official said in a statement on Tuesday.
Federal Water and Power Minister Raja Pervez Ashraf said that Pakistan would spend money from its own resources on the construction of both the dams (Gomal and Satpara) and the United States would reimburse $40 million and $20 million, respectively, for these two projects.
MCB Bank announces Rs19.4bn profit
KARACHI: MCB Bank has announced Rs19.4 billion profit before tax for the first three quarters of 2010 as against Rs17.6 billion for the corresponding period in 2009, showing an increase of 10 percent.
Profit after tax was reported at Rs 12.5 billion, translating into an earning per share (EPS) of Rs16.44, said a statement issued on Tuesday.
The board of directors met on October 26 and reviewed the performance of the Bank for the nine months ended September 30. It approved the financial results for the period.
What to expect from IMF’s next meeting
KARACHI: Officials of the International Monetary Fund (IMF) and Pakistan are due to meet on Wednesday in Islamabad to discuss the country’s performance for the release of the sixth tranche of a $11 billion IMF loan.
Policy level discussions will take place on November 1-2, according to official sources.
The last review was completed in May and the review for the release of the sixth tranche has been delayed since August over several issues, such as an increase in power tariffs and the implementation of a reformed general sales tax (RGST).
UN starts wheat aid to 500,000 Pakistani farmers
The aid means the current planting season that ends in December will still take place, the FAO said in a statement, adding that it would also provide vegetable seeds and fertilizer and assist livestock farmers.
China, US closer to G20 deal on trade imbalances: report
The Financial Times quoted Li Daokui, an adviser to China’s central bank, saying G20 finance chiefs had made “good progress” towards a deal at their meeting in South Korea at the weekend.
“I was very encouraged by the G20 meeting,” Li told the newspaper in an interview. “It is now possible for the two governments (the US and China) and other governments to have a good understanding.”In a statement the G20 finance ministers agreed to “refrain from competitive devaluation of currencies” and aim for “more market-determined exchange rate systems”.
Malaysia, India to begin free trade mid-2011
“I’m glad to officially announce that the agreement will come into effect in 2011. That will signify a huge strategic move… and establish a strategic and stronger bilateral relationship,” Prime Minister Najib Razak told a joint news conference after a meeting Indian counterpart Manmohan Singh.
Five per cent rise in POL prices likely
ISLAMABAD: With people already reeling under 16 per cent inflation, the prices of petroleum products are likely to be increased by more than five per cent (Rs3.5 to Rs4 per litre) on October 31 owing to a rising trend in the international market.
The surge in oil prices coupled with an anticipated large increase in natural gas prices is likely to push the rate of inflation higher than the budget estimate of 9.5 per cent.
The inflation estimates have since been revised up to 14.5 per cent for the current year because of disruptions in the supply of food items, although consumer price indicator recorded an increase of 15.71 per cent in September.
Sources told Dawn on Monday that the prices of almost all petroleum products had substantially increased in the international market which would be passed on to consumers later this week.
The benchmark crude prices in the Arabian Gulf market have risen to $75 per barrel from about $72 per barrel a couple of months ago.
The sources said the prices of petrol and kerosene would go up by about Rs3.5 per litre and that of diesel by Rs4 per litre.
As a result, the price of petrol would rise to Rs70 per litre from Rs67 and of diesel to about Rs77.5 per litre from Rs73.80.
Officials said that the increase would take place after a gap of about six months.
As a result of the increase, the government's revenue on oil products could go up because of flexible general sales tax.
Tuesday, October 26, 2010
Loan write-offs Banks issue notices to defaulters
KARACHI: Banks have already issued notices to defaulters in line with the directives of the Supreme Court, heads of commercial banks informed the State Bank of Pakistan (SBP) at a meeting held Monday.
The SBP convened a meeting of commercial banks and development finance institutions to work out a strategy to recover written-off loans under the directive of the Supreme Court, said a statement.
PPL bags top slot at Best Corporate Report Awards
KARACHI: Pakistan Petroleum Limited (PPL) Annual Report 2009 was chosen as the best in all sectors at the Best Corporate Report Awards (BCRA), said a press release on Monday.
The company also stood first among five short-listed organisations in the Fuel and Energy sector for the second year in a row. This is the fourth BCRA that the company has won, the first being in 2005, followed by 2007 and 2008.
Kolson and Lotte sign strategic alliance
K. S. Sulemanji Esmailji & Sons (Pvt.) Ltd. also known as Kolson signed a strategic investment alliance with Lotte Confectionery, South Korea. A ceremony was held in Karachi recently to formally announce this arrangement which was attended by Mr. IK Lee , Consul General of South Korea, Mr. Anis ul Hasnain Musvi, Secretary Board of Investment, Govt. of Pakistan, Ms. Nasreen Ali, DG Board of Investment, Govt. of Pakistan, senior management of Lotte Group, directors and management of Kolson, dignitaries and distinguished businessmen. Both the companies are well recognized in the food business and by joining hands they are poised to create new benchmarks in the F&B sector in Pakistan while also expanding the base to the regional markets.
Meezan Bank posts Rs995m profit
KARACHI: Meezan Bank Limited has registered 52 percent growth in profits for the nine months ending September, 2010, a bank statement said on Monday.
A meeting of the bank’s board of directors was held in Dubai, presided over by its Chairman, Sheikh Ebrahim Bin Khalifa Al Khalifa.
PSO posts highest-ever sales
ISLAMABAD: The Pakistan State Oil (PSO) sold 275,850 tons of gasoline during the first quarter of the current financial year, which is the highest-ever quarterly sales in its history, an official of the company said in a statement on Monday.
However, the quarter was marked by downward trend in the country’s fuel consumption due to the devastation of communication infrastructure and closure of some power entities caused by the recent floods, the official said.
KSE’s net income declines by 78.31pc
KARACHI: The net income of the Karachi Stock Exchange (KSE) for the year ended on June 30 declined by a significant 78.31 percent to reach Rs68.094 million against Rs314.085 million last year, the KSE’s directors’ report said on Monday.
The depressing performance is attributed to decline in operating income, reversal of management fee and increased administrative expenses, which resulted in a loss of Rs372.092 million against the loss of Rs174.895 million last year.
SBP Annual Report 2009/10
KARACHI: The State Bank of Pakistan (SBP) has said that floods incurred immense losses to the economy and estimated the GDP growth in FY11 (July-June) to be in the range of two to three percent against the government target of 4.5 percent.
The central bank in its annual report FY10, released on Monday, said that the estimates for FY11 are based on the incomplete information on flood losses.
Govt borrowings climbed to Rs10,200 bn: SBP
It said that the amount borrowed by the Government climbed to 10,200 as on June 30, 2010.
The Review said cited increase in financial deficit as the prime reason for the rise in government borrowings. The government borrowings stand at 69.5 per cent of the GDP.
Pakistan re-elected to UN Economic & Social Council
Already on the 54-member council, Pakistan received 149 in the 192-member UN General Assembly to serve another term.