INTERNATIONAL CEO SUMMIT

Friday, 9 November, 2012

KARACHI

STAFF REPORT

The speakers at the 4th International CEoSummit Thursday emphasized that thereis immense potential and resources in Pak-istan and if the resilient people are prop-erly guided they can push the country intoa developed nation as they overcame dev-astated floods and earthquakes within theshortest possible time.

However, they said, the people couldnot harness the national resources be-cause of various reasons including lack ofprofessional approach and the ever-wors-ening law and order situation across thecountry that is inter-related with struc-tural problems. This mess has createdfear of uncertainty in all spheres of life,the speakers added.

Themed as “Growth in Testing Times:Challenges & opportunities”, the summitalso witnessed the launching of a book ti-tled “100 Business Leaders of Pakistan”.

The event took place under the aegis ofManager Today magazine and CEo CLUB.

Those who spoke on the occasion in-cluded chief guest Yaseen Anwar Gover-nor State Bank of Pakistan; Ijaz NisarFounder and President The ManagerToday’s & CEo CLUB; Hussain DawoodChairman Engro Corp; Asad Umar Ex-President Engro Corp; Kamran Rizvi - Ex-ecutive Director, Navitus; Atif Bajwa –President & CEo, Bank Alfalah; Sohail

Wajahat Siddiqui Chairman, PakistanState oil; Sirajuddin Aziz – President,Habib Metropolitan Bank; KashmalaTariq, MNA; Muhammad Zubair Moti-wala, Chairman SBI; M Rafiq UddinMehkari – President, Askari Bank; IrfanSiddiqui - President & CEo, Meezan BankLimited; Shireen Naqvi – Lead Trainer,Navitus; Adnan Siddiqui – Country Gen-eral Manager, IBM Pakistan; SikandarSultan – CEo, Shan Foods (Pvt.) Ltd;Hasan A Bilgrami – CEo, Bank IslamiPakistan Ltd; Duraid Qureshi, CEo HUMNetwork; Shehryar Ali Taseer – CEo,Media Times Ltd; Jamshid Iqbal Cheema– Chairman, Auriga Group of Companies;

Asad Said Jaffar – Chairman & CEo,Philips Electrical Industries of PakistanLtd; Syed Saquib Mohyuddin – CEo,SME BSF; Usman A. Ghani – Interna-tional Consultant CoNFLUENTC; TariqM. Rangoon Wala Chairman, ICC Pak-istan Chapter & Dr. Kamran Shams Exec-utive Director Akhuwat and others.

Speaking on the subject of role playedby the visionary leadership in overall eco-nomic growth, Governor SBP YaseenAnwar said the business leaders were fac-ing challenges both internally and exter-nally. But, he said, they cannot take gooddecisions internally without consideringthe external issues and problems.

Asad Umar, former President of EngroCorporation, said a clear vision and senseof ownership not only brings up good lead-ers but helps build great institutions aswell.

He said that institutions were beyondindividuals leading the institutions andtrue leadership was vital to the entire so-cioeconomic growth of the country.

Ijaz Nisar said: “We always quote suc-cess stories of western CEos but do nothighlight achievements of local entrepre-neurs like Sohail Wajahat Siddiqui, Kam-ran Rizvi, Asad Umar, Muhammad ZubairMotiwala and Yaseen Anwar.”

He said Pakistan had its own local Bill

Gates, Steve Jobs and Laxmi Mittal whocould turn the fate and face of the countryif they were provided conducive andfriendly environment for doing business.

Topic of the summit were: The pathto prosperity: opportunities of BusinessGrowth in Pakistan (CEo’s Panel Dis-cussion); Entrepreneurship: Future ofPakistan; Role of visionary Leadershipin Economic Growth; DevelopingHuman Capital as Strategic Investment;Corporate Governance for Growth –New Economic Agenda & Business Suc-cess; Developing Public–Private Part-nership to Boost EconomicDevelopment; What does ‘Growth’ meanfor: A new enterprise, A family business& A multinational; The tough questions:Growing where? Growing how?; Grow-ing through people: Engagement First!And Growing with money; Getting thebest bang from your buck!.

The summit was termed as an ideal op-portunity for building relationships withpeers and colleagues who can share infor-mation, insights and inspiration that canbe of vital help for the local organizations.

The event also provided multiple op-portunities to gather with other summit at-tendees in order to extend once reach andinfluence into the community of his/herfellow senior CEo leaders.

The conference was well attended andmore then 500 professionals from differ-ent cities of the country showed up in it.

‘Pakistan has its own Bill Gates, Steve Jobs and Laxmi Mittal’

KARACHI

STAFF REPORT

GoVERNoR State Bank ofPakistan Yaseen AnwarThursday said Pakistan’seconomy should nowmove away from a per-

sisting fascination with inward ForeignDirect Investment (FDI) as a metric of thecountry’s economic health.

The economy, the governor said,should now, at least, give attention to theoutward Foreign Direct Investment(oFDI). This he said at the 4th CEo Sum-mit and book launching of “100 BusinessLeaders of Pakistan” held here at a localhotel. Anwar pointed out that FDI was in-vestment in tangible assets in the real sec-tor. “That means that money and capitalflows through FDI are not very volatile.And it is the volatility in such flows thatkeeps any central banker awake at night,”said he. The governor also stressed theneed for developing and implementinggood governance practices to stimulateeconomic growth in the country.

He said good corporate governanceregimes cannot be underscored

more as they create an attractive invest-ment climate necessary to maintain in-vestors’ confidence, resulting in positiveimpact on the share price and creatingpossibilities for raising low cost capital.

Leaders must be visionary to see thefuture trends, anticipate institutional bot-tlenecks, remain competitive and be ableto adapt rapidly to changes, he said andadded that leaders need also to take intoaccount their corporate social responsibil-ity so that profit seeking is balancedagainst the objective of social service andwell being of society. Anwar observed thatPakistan’s corporate sector has survived inperhaps one of the most challenging envi-ronments and yet it has flourished. “Thereare challenges to expanding abroad –challenges that our companies may nothave encountered previously. But I, for

one, would like to see more of ourcorporate sector aggres-

sively targeting the regional and globalmarket. I challenge you to dream largerthan ever before,” he added.

Anwar noted that the millions ofPakistanis abroad will give you an edgeas you venture abroad. “They will be fa-miliar with your brands, and with thequality of your products. They may justhold the key to giving you a foothold ininternational markets,” he added. Heobserved that the world today is pass-ing through a turbulent phase that re-quires a realignment of our leadershipapproach to managing businesses.“Today’s business leader is faced with amultitude of challenges, both on exter-nal and internal fronts. The complexi-ties arising in the eco-system of anybusiness may arise in the shape ofmacro economic imbalances that in-

clude sagging demand, infla-tion, volatility in financial

markets, etc.,” he said.The Governor said: “The most sig-

nificant lesson that we have learnt fromrecent events is the importance of fun-damentals in risk management. For in-stance, there is a basic rule sinceinception of banks which says “do notput all your eggs in one basket. Had thissimple rule been followed, many institu-tions could have avoided huge losses”.

Anwar cautioned that elevating cor-porate governance should not be confinedto banks, but commercial concerns mustalso do the same. “We all know the pace ofglobalization has accelerated, resulting inincreased domestic and global economicintegration,” he added.

“The current breed of Pakistani CEosis the street-smart entrepreneur, who willlearn to adapt to any environment. That isgoing to be our competitive advantage inthe global market,” he noted.

“Twenty years from now, I would liketo hear the story of how a Pakistani corpo-ration entered the global market, the chal-lenges it faced and overcame, and becamethe first Pakistani company to be consis-tently featured in the Fortune Global 500list of companies,” Anwar concluded.

SBP eyes outward FDIWants it to be economy’s focus

Pakistan’s Liquid

Foreign Reserves

stand at over $14bISLAMABAD

APP

The total liquid foreign reserves held bythe country stood at $ 14,100.5 millionon November 2, 2012. Giving the break-up of the foreign reserves position astatement of the Central Bank said thatForeign reserves held by the State Bankof Pakistan stood at $ 9,547.4 millionwhile the net foreign reserves held bybanks (other than SBP) stood at $4,553.1 million as on November 2,2012.

Pakistan, China ink MoU

for joint marketing KARACHI

APP

Heavy Industries,Taxila and Norinco -Chinaon Thursday inked a Memorandum of Un-derstanding (MoU) paving way for joint mar-keting and sale, on private-publicpartnership basis, of jointly manufactureddefence and commercial products.The MoU signed by Lt. Gen Ayaz SaleemRana, Chairman, Heavy Industries Taxila(HIT) and Wang Li, Vice President of Nor-inco, the Chinese defence firm, will enableHIT to open itself to international markets inconsent with Government of Pakistan andGovernment of China.Secretary, Ministry of Defence Production,Lt. Gen (retd)Shahid Iqbal and Additional Secretary, TariqRashid Khan were also present during thesigning ceremony.This MoU signed, on the sidelines of the on-going defenceexhibition,IDEAS 2012, also encompassesfurther strengthening of joint commercialventures undertaken by the two.HIT established in 1974, in collaborationwith Norinco -China, was initially a rebuilt factory and ispresently manufacturing different defenceand commercial products including tanks,prime movers, trucks and so-forth.These are besides essential components ofvaried heavy load gadgets.

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Friday, 9 November, 2012

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERIsland TextileXD 465.25 488.51 488.51 488.51 23.26 100Exide (PAK) 318.00 331.50 330.00 330.00 12.00 400Attock RefineryXD 159.99 167.98 161.00 167.60 7.61 4,063,700Pak Services 166.99 174.90 174.90 174.90 7.91 200Millat Tractors Ltd. 519.65 526.00 519.01 525.55 5.90 40,100

Major LosersUniLever Pak 9774.99 9501.00 9501.00 9501.00 -273.99 20Unilever Food 3775.00 3600.00 3600.00 3600.00 -175.00 40Bata (Pak) XD 1380.00 1420.00 1325.00 1325.00 -55.00 200Siemens Pakistan 769.00 750.00 750.00 750.00 -19.00 50Sanofi-Aventis Pak 340.00 325.00 323.60 324.20 -15.80 300National FoodsXD 292.69 294.00 278.06 279.74 -12.95 92,700

Volume Leaders

Engro Foods Ltd. 80.43 83.01 78.12 79.13 -1.30 14,856,000K.E.S.C. 5.62 6.06 5.62 5.85 0.23 12,057,500Jah.Sidd. Co. 14.14 15.14 14.06 15.14 1.00 11,429,000Azgard Nine 6.46 7.15 6.42 7.05 0.59 9,177,500D.G.K.CementXD 52.68 53.28 52.11 52.65 -0.03 8,507,000

Interbank RatesUS Dollar 95.9451UK Pound 153.6369Japanese Yen 1.1942Euro 123.1935

Dollar EastBUY SELL

US Dollar 95.90 96.40Euro 120.84 123.19Great Britain Pound 151.37 154.28Japanese Yen 1.1819 1.2045Canadian Dollar 94.62 96.95Hong Kong Dollar 12.14 12.40UAE Dirham 25.85 26.32Saudi Riyal 25.25 25.68Australian Dollar 98.18 101.52

Business

GIDS to participate in IDEAS-2012

in a big way

KARACHI: Global Industrial & Defence Solutions (GIDS) is par-ticipating in IDEAS-2012 in a big way. This international exhibi-tion of arsenal is organised on alternate years at Karachi ExpoCentre. organizing IDEAS has helped in projecting Pakistan as acountry capable of meeting the defence requirements of geopoliti-cally important states of the region. At IDEAS-2012, Global In-dustrial & Defence Solutions (GIDS) is displaying acomprehensive range of products being produced by its con-stituent companies. These companies are involved in productionof research based products and services. These products and serv-ices are extensively used by the three stakeholders responsible forguarding the air, land and sea frontiers of Pakistan. Excellence intechnology, innovation and competitiveness give these companiesan edge over other manufacturers in the region. These companiesinvest heavily in R&D and give top priority to the development ofhuman resource. The seven constituent companies are: AdvanceEngineering Research organization; Integrated Defence Systems;Marine Systems, Xpert Engineering Services; Institute of Indus-trial Control Systems; Al-Technique Corporation of Pakistan, andScientific Engineering & Technology Services.

Burj signs MoU with Honda

LAHORE: Burj Bank Limited,Pakistan’s fastest growing Is-lamic Bank, signed a Memoran-dum of Understanding (MoU)with one of the country’s top au-tomotive brands, Honda AtlasCars (Pakistan) Limited. TheMoU was signed by Mr AhmedKhizer Khan, President & CEo –Burj Bank Limited & Mr Take-haru Aoki, President & CEo –Honda Atlas Cars (Pakistan)Limited in the presence of MrKhwaja Asif, Group Head Con-

sumer Banking & SME – Burj Bank Limited and Mr Ayaz Hafeez,GM Sales & Marketing – Honda Atlas Cars (Pakistan) Limited.

CORPORATE CORNER

HONG KONG

AFP

FEARS the US econ-omy is facing anotherhuge economic crisisspurred a sell-off inAsian markets Thurs-

day as Barack obama’s re-electionraised the spectre of another dan-gerous stand-off in Washington.

Investors fear a deeply dividedCongress will not be able to reachan agreement to avoid a so-calledfiscal cliff at the end of the yearthat many say will send the UnitedStates back into recession.

Eyes are also on Beijing, wherethe Communist Party has kickedoff its 18th congress, which willsee the beginning of a once-in-a-decade leadership change.

Tokyo stumbled 1.27 percentby the break, Hong Kong skidded1.24 percent, Sydney lost 0.85 per-cent, Seoul was 0.89 percent lowerand Shanghai fell 0.87 percent.

The initial upbeat reactionWednesday to obama’s victoryover Republican Mitt Romney wasreplaced Thursday with trepida-tion as the focus turned to the fis-cal cliff, a combination of deepspending cuts and huge tax hikesto take effect on January 1.

The package is a major threatto the economy after a protractedbut possibly reckless compromisewas agreed last year between De-

mocrats and Republicans in orderto raise the country’s borrowingcap.

If it kicks in, the United States’slow recovery from the financialcrisis could be reversed and theeconomy tip back into recession,which would in turn deal a majorblow to the global economy.

And with Democrats holdingthe Senate while the Republicanshold the House of Representativesanalysts say a compromise couldbe as tough to find as last August,when the row over the spendinglimit saw the country lose its AAAsovereign debt rating.

“Immediately after the re-elec-tion parties ended, markets re-turned to the daunting issue of theUS ‘fiscal cliff’,” Nicholas Smith,Japan strategist for CLSA inTokyo, told Dow Jones Newswires.

Wall Street, which had

favoured a pro-business Romneywin, tumbled on obama’s victory.

The Dow dived 2.36 percent,the Nasdaq shed 2.48 percent andthe S&P 500 lost 2.37 percent.

Currency markets also reactednegatively.

The dollar fell to 79.87 yen inearly Asian trade, from 79.96 yenin New York late Wednesday, asinvestors seek out the safe Japan-ese unit amid times of economicuncertainty.

And the euro was also hit bytraders becoming more risk-averse. The single currency, whichrose against the dollar Wednesdayon expectations of continued looseUS monetary policy under obama,fetched $1.2757 in Tokyo, com-pared with $1.2767 in New York. Ithad reached $1.2860 on Wednes-day in Asia.

The European currency also

fell to 101.87 yen, compared withand 102.09 yen.

Market sentiment was alsopressured after the EuropeanUnion slashed its eurozone eco-nomic forecast and European Cen-tral Bank chief Mario Draghiwarned that the eurozone’s woeswere beginning to hurt Germany,the bloc’s powerhouse.

However, Greek lawmakersdid manage to pass a crucial aus-terity package that opens the wayfor it to qualify for a fresh batch ofbailout cash.

In China the week-long con-gress is expected to see the anoint-ment of the country’s next leaders,with the focus on the compositionof the Communist Party’s top gov-erning body for signs of future pol-icy direction.

In a speech to open the eventPresident Hu Jintao called for thecountry’s future leadership to“speed up the creation of a newgrowth model and ensure that de-velopment is based on improvedquality and performance”.

oil prices rose, with NewYork’s main contract, light sweetcrude for delivery in December,adding 42 cents to $84.86 a barreland Brent North Sea crude for De-cember delivery gaining 41 centsto $107.23.

Gold was at $1,716.60 by 0300GMT compared with $1,729.40Wednesday.

OGRA hires auditing firm to recommend

profit margin of CNG stations

ISLAMABAD: oil and Gas RegulatoryAuthority (oGRA) on Thursday issued acontract for emergency audit of the CNGstations. The contract of audit has been is-sued to owais Haider and Noman Liaquatauditing firm.The firm would recommendthe production cost and the profit of theCNG stations. The audit company is ex-pected to present its recommendations byNov 12. Profit margin of the CNG stationswould be decided on the recommendationsof the audit report, the sources said. owaisHaider and Noman Liaquat Company isamong the 14 best auditing firms as rankedby the State Bank of Pakistan. ONLINE

Asian markets hit byUS ‘fiscal cliff’ fears

TOKYO

AGENCIES

The euro weakened in AsiaThursday as markets

looked to a EuropeanCentral Bank meet-

ing as the nextkey trading peg

after the USpresiden-

tial elec-tion andapprovalof aG r e e kausteritypackage.The sin-gle cur-r e n c yb o u g h t

$1.2760 and 101.92 yen in Tokyo trade, from$1.2767 and 102.09 yen in New York lateWednesday after the European Union cut itseconomic growth forecast and the ECB chiefstoked worries about how slowing growth ishurting the continent’s top economy, Germany.

The dollar weakened to 79.87 yen, from79.96 yen in US trade. The greenback tumbledin Asian trade Wednesday as dealers bet thatunder the re-elected President Barack obamathe US Federal Reserve would continue its loosemonetary policy that has seen it flood marketswith billions of dollars, which weighs on thegreenback. Investors were focused on the ECB’spolicy meeting later Thursday and a press brief-ing by its president, Mario Draghi, dealers said.

“Although the ECB is expected to stand paton its monetary policy, the euro may come underpressure if Mr Draghi signals a chance of furthereasing amid the recent worsening of the euro-zone economy,” said Daisaku Ueno, senior forexand fixed income strategist at Mitsubishi UFJ

Morgan Stanley.“In Asia, a wait-and-see stance will likely

dominate before the events,” he told Dow JonesNewswires. on Wednesday, the Greek parlia-ment passed austerity measures crucial to secur-ing loans demanded by international creditorsseen as necessary to keep its economy afloat.

Dollar-yen trade was little moved Thursdayby new data showing a smaller-than-expectedsurplus in Japan’s September current account,the broadest measure of trade with the rest of theworld. The new data are seen as a negative forthe yen. Traders also focused on post-electiondevelopments in the United States, with fearsthat a divided Congress could again see deadlockon reforms, allowing a so-called “fiscal cliff”package of spending cuts and tax hikes to takeeffect on January 1. If Congress fails to agree howto cut spending over the medium term, there willbe automatic deep spending cuts that could tipthe United States back into recession, in a majorblow for the slowing global economy.

Euro weak in Asia ahead of ECB meeting

SINGAPORE

AFP

Crude prices bounced on bargain-hunting inAsia Thursday after suffering big losses in NewYork where dealers were spooked by concernsover the US “fiscal cliff” and European debt, an-alysts said. New York’s main contract, lightsweet crude for delivery in December, added 55cents to $84.99 a barrel in the afternoon andBrent North Sea crude for December gained 68cents to $107.50.

“We had quite a large move down (Wednes-

day) as the worries over the fiscal cliff and Eu-ropean woes started to more than usurp the eu-phoria” over the re-election of President Barackobama, Jason Hughes, head of premium clientmanagement for IG Markets Singapore toldAFP. “In Asian trade prices have pushed backup... it’s probably people covering positionsafter a big move.”

After obama’s victory over Republican MittRomney the focus turned to the US fiscal cliff,a combination of deep spending cuts and hugetax hikes to take effect on January 1.

The package is a major threat to the econ-omy that investors warn could tip the world’snumber one economy back into recession iflawmakers do not agree a less deal to slash thecountry’s debt.

Sentiment has also been pressured after theEuropean Union cut its eurozone economicforecast and European Central Bank chiefMario Draghi issued a warning over the cur-rency bloc’s woes. “Unemployment is de-plorably high, overall economic activity is weakand it is expected to remain weak in the nearterm,” Draghi told a banking conference inFrankfurt on Wednesday.

ADB, OFID

sign risk-sharing

agreement ISLAMABAD

APP

Asian Development Bank (ADB) and theoPEC Fund for International Develop-ment (oFID) signed a risk distributionagreement to support trade in emergingAsian countries, including Pakistanunder ADB’s Trade Finance Program(TFP).The agreement will support an estimatedincremental trade flow between $800million and $1.2 billion in countries suchas Bangladesh, Mongolia, Pakistan, SriLanka and Uzbekistan, and other mar-kets where financing from private finan-cial institutions is limited.“By supporting trade transactions inemerging Asia, oFID and ADB will helpcreate economic growth and jobs,” saidPhilip Erquiaga, ADB’s Director Gen-eral for Private Sector operations De-partment. According to ADB pressstatement received here Thursday,ADB’s TFP fills private sector marketgaps in trade finance by providing guar-antees and loans through over 200partner banks to support trade.

Crude up in Asia on bargain-hunting

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