ISLAMABAD

AMER SIAL

C OntRaRY to the claimsof Finance Minister Dr.abdul Hafeez shaikh ofachieving 4 percentgrowth rate during thecurrent financial year,

the national accounts Committee(naC) has made a provisionalestimate of 3.2 percent growth inthe gross domestic product (GDP)for the current fiscal year. Briefing reporters after themeeting on thursday, secretarystatistics Division sohail ahmadsaid that from the available data oflast eight to nine months, theprovisional growth is estimated 3.2percent for the current fiscal year,as compared to growth of 3 percentlast fiscal year. the increase hasbeen made possible by growth inagriculture sector by 3.6 percent,while industrial sector grew by 3.4percent and services sector by 2.1percent. the government hasearlier projected the GDP growthof 4.2 percent but later on revisedit to 3.6 percent for the currentfiscal year.He said for assessing the economyfor the current fiscal year, thePakistan Bureau of statistics (PBs)also revised the base year from1999-2000 to 2005-2006. He said

revision exercise is common inevery country after 5 to 10 years.the revised data GDP and overalleconomic growth since 2005-06did not change much as comparedto the old data base. the revisionshows that agriculture share inGDP has increased from 24.1percent to 24.7 percent, industrialsector increased from 21.7 percentto 22 percent while services sectorshare increased from 47.2 percentto 53.1 percent. Overall GDP atmarket prices for the new baseyear has slightly decreased by 0.4percent. the average annualgrowth rate between 2005-06 and2010-11 has decreased from 3.7percent to 2.9 percent. sohail said that the revision wasnecessary and brought significantimprovements but did not rewritethe economic history of thecountry. He said that the rebasingwas done in a very professionalmanner and international bestpractices were adopted. Expertsfrom German internationaldevelopment agency, GiZ closelymonitored the implementationprocess. after changing the baseyear, GDP size at cost and price isassessed Rs 9113.2 billion thisfiscal year with per capita incomeof Rs 53,137. the PlanningCommission has assessed thepopulation at 178.9 million as

compared to 175.3 million lastyear. in the agriculture sector the cropsregistered an increase of 3 percent,livestock 4.1 percent, forestry 4.1percent and fishing 1.8 percent.the mining and quarrying categoryin industrial sector increased by 1.7percent, manufacturing 2.4percent, construction 2.8 percentand energy by 14.3 percent.Explaining the reason forabnormal growth in electricitygeneration and distribution andgas distribution, Head of PBs arifCheema said that it was calculatedon the basis on subsidy provided tothe sector by the government. Hesaid it is calculated in the sameway internationally.in the services sector, transportand communication increased by3.2 percent, wholesale and retailtrade 2.1 percent, financial andinsurance declined by 11 percent,ownership and dwellings 3.4percent, public administration anddefence by 3.4 percent, and socialand public services by 3.4 percent.about the decline in financial andinsurance, Cheema explained thatit was calculated on constant termbut on current prices they figuremight be in positive. PBs explainedto the meeting that with therebasing 2005-06, Pakistan will befocusing mainly on GDP instead of

Gross national Product (GnP),which is outdated, and replaced byGross national income (Gni).international comparisons requireapplication of internationallyagreed classifications. therebasing 2005-06 employs anational adaptation of Unitednations, international standardindustrial Classification of allactivities (isiC). the adaptation iscalled Pakistan standard industrialClassification (PsiC 2007).switching to the modernclassification implies to show theoutput and the value added ofgovernment units under theheadings of the respectiveactivities like publicadministration and defense,education, health social services.Un has already released an evenmore modern classification whichin Pakistan has come into use withthe census of manufacturingindustries 2011, and which will besoon employed in nationalaccounts.at present, the national accountsin the country are calculated onannual basis, but when therebasing 2005-06 is finalised thenthe annual time series will bequarterized and quarterly accountswill be launched. and PBs will inparallel enter into compilation ofinstitutional sector accounts.

It’s 3.2 Doc,not 4.0g Pakistan’s economy to grow 3.2 per-

cent for current fiscal year: nACg If the prophecy comes true it would

still be a 0.2 percent rise

profit.com.pk

On the origin of incomesPage 02

Friday, 27 April, 2012

So CLoSE YEt So FAR… In FACt not CLoSE At ALL

sO MCB posts extraordinaryfirst quarter results just whenthe banking sector must take

centre stage if liquidity is to bebrought back to choked creditmarkets, betting on just enoughprivate sector offtake to grow out ofpersistent stagflation. Gooddevelopment, especially sinceconditions have been just about rightfor much of the sector to follow suit.Despite hawks prevailing in themonetary policy committee, thebusiness environment has been busyover the last quarter, especially inthe commerce ministry. Word has itthat islamabad’s recent spiriteddrive to reach out to new exportmarkets has facilitated a welcomereturn to form on the part ofcommercial banks. as tradeincreases, so does the need for banksto innovate, offer facilities, do morebusiness, create more money, andgenerate greater multiplier.Yet more than the exogenoussupport, it is positive movement onnPLs that stands out, indicating aclear shift in near-to-medium termoutlook. Risk management problemshave long been central to thebanking sector’s willingness to caterto abnormal government borrowing.Posturing proactively on the issueshows MCB’s policy in the daysahead, developing instrumentsaimed at facilitating private sectorgrowth and innovation, the life andblood of an emerging economy.Expect banks to do better in the localbourse, with hoards that rode therecent cement boom diversifyinginto banking scrips – a trend with itsown irrefutable logic since increasedcement demand that fed onenhanced trade opportunities playedno small part in improving bankearnings over the quarter just ended.MCB has set the tone with animpressive first quarter show. as thesector gains momentum and adds tomarket buoyancy, its bigger playerswill realize the central role it has toplay in the wider economy. Comingquarters will tell much about whichway the economy will tilt, and whatrole its money lenders play.

CoMMEnt

MCB setsthe tone

KARACHI

GHULAM ABBAS

Pakistan, being an agrobased economy, is primarilyknown for its aromaticBasmati rice in the world

but it may lose the position in MiddleEast as Philippine is all set tointroduce the same Variety of rice inthe region.the foreign country which once itselfwas a rice importing country is nowlooking forward to export theBasmati rice to the gulf region afterbeing self sufficient in variousvarieties of rice.

Philippine has almost stoppedimporting rice so far and it waslooking for exports of high qualityrice (Basmati) which may poseserious threat to Pakistani productsin the region, taufiq ahmed khan ofRice Exporters association ofPakistan told Pakistan today.“in the absence of any research andvalue addition mechanism in thecountry Pakistan may lose theimportant markets where itsaromatic Basmati has a highdemand,” he said adding that manyforeign countries were alreadyexperimenting to grow the highlydemanded varieties of rice and other

agricultural products.“the most impact of the introductionof Philippine rice in the region wouldbe on Pakistani products, causing theloss of over $ 1 billion worthexports,” he said adding“approximately 70 percent of thecountry’s rice goes to Middle East”.in order to have the hold on theexisting markets besides taping newmarkets the country was needed tohave research facilities, high techmilling machinery and localfabrication, and maintenance andimprovement of quality of theagricultural product.according to sources Qatar and

kuwait were the leading MiddleEastern countries which were willingto import the Basmati rice fromManila. the Philippine and Qatargovernment recently signed severalagreements to boost trade andinvestment ties. One of theagreements focused on agricultureand fisheries sectors. the Philippinesused to be the world’s top riceimporter, purchasing as much as 2million tons of rice in 2010. theforeign country has vowed to makeitself sufficient in rice by 2013. since2011, the country has drastically cutdown its import requirement.it is worth mentioning here that rice

is the third largest crop after wheatand cotton. it is grown over 10percent of the total cropped area.Rice is highly valued cash crop and isalso major export item. it accountsfor 6.7 percent in value added inagriculture and 1.6 percent in GDP.Pakistangrows enough high qualityrice to meet both domestic demandand allow for exports of around onemillion ton per annum.Different varieties of rice are grownin Pakistan for example superBasmati, Basmati Pk-385, irri-6,irri-9 and ks-282 etc. Pakistan isprimarily known for its aromatic rice(super Basmati/Basmati Pk-385).

RICE RIVALRIES

Our Basmati kingdom under attackg Pakistan may lose its hegemony over Basmati exports g Philippines to put its Basmati rice on the Middle East table

PRO 27-04-2012_Layout 1 4/26/2012 11:37 PM Page 1

news02Friday, 27 April, 2012

KARACHI

ISMAIL DILAWAR

tHE federal government,through a presidential ordi-nance issued on tuesday,gave a legal cover to the fed-

eral finance mister’s assurances to thestocks investors that they would not beasked to declare the source of their in-vested amount for next two years.

“Having not read the ordinanceyet, we expect that the Ordinance in-corporates all of the finance minister’sassurances to us,” said naeem Rafi,former ksE chairman and CEO of Rafisecurities. the stock broker said onWednesday the investors at the ksEwere panicked by the apprehensionthat the Ordinance would not carry theexemption clause for the investors.the Finance (amendment) Ordinance2012, which was placed on the websiteof the karachi stock Exchange onWednesday, exempts the investorsfrom declaring the “nature andsource” of the amount invested.

the investors would however haveto file a statement of investment withthe commissioner along with the re-turn of income of and wealth state-ment for the tax year 2012 within theprescribed due date.

“and that the amount invested re-mains invested for a period of 45 daysup to June 30, 2012,” the Ordinance

reads. also, it says the enquiries aboutthe nature and sources would not bemade on the investments made for aperiod of 120 days.

a special provision, section100B, has been inducted in the Ordi-nance that says the CGt on disposalof listed securities and tax thereonshall be computed, determined, col-lected and deposited in accordancewit the rules laid down in the Eightschedule. section 100B of the Eightschedule deals with the manner andbasis of the computation of capitalgains and tax thereon.

section 1 of the schedule says thenCPPL should collect and deposit theCGt on behalf of the taxpayer in themanner prescribed. For the purpose,the nCCPL should develop an auto-mated system.

the nCCPL would be issuing anannual certificate to the taxpayers onthe prescribed form in respect of capi-tal gains subject to tax under thisschedule for a financial year.

Provided that on the request of ataxpayer or if required by the commis-sioner, the nCCPL shall issue a certifi-cate for a shorter period within a fiscalyear. the taxpayers would be bound tofile the certificate along with the re-turn of income and such certificateshall be conclusive evidences in re-spect of their income.

the nCCPL would be required to

furnish to the Federal Board of Rev-enue within 30 days of the end ofeach quarter a statement of capitalgains and tax computed thereon inthat quarter in the prescribed man-ner and format.

the nCCPL would be depositingthe collected tax money in a separatebank account with the national Bankof Pakistan and the said amount shallbe paid to the FBR along with interestaccrued thereon on yearly basis byJuly 31 next following the fiscal year inwhich the amount was collected. thePakistan Revenue automation Lim-ited (PRaL) or any other firm ap-proved by the FBR would conductregular system and procedural auditsof the nCCPL on quarterly basis toverify the implementation of thisschedule and the relevant rules. How-ever, no penal action would be takenagainst the nCCPL if it commits anerror occurred from application of thesystem. if unable to recover by its own,the nCCPL would refer the defaultingtaxpayers to the FBR.

the Ordinance also includes“transitional provisions” saying: in re-spect of tax year 2012, for the periodcommencing from coming into forceof this schedule till June 30, 2012 thecertificate issued by the nCCPL underthe relevant rule should be the basis ofcapital gain and the tax thereon forthat period.

KARACHI

ISMAIL DILAWAR

tHE karachi stock Exchange (ksE)thursday notified to its members andother stakeholders the revised tax

structure promulgated by the federalgovernment through a presidential ordinanceon april 24. “Members are hereby informedthat in terms of amendments made in theFinance act, 1989 and the income taxOrdinance, 2001… the taxes currently collectedby the Exchange have been revised,” said theksE. in total two changes have been made inthe existing taxation structure at the bourse thatwould come in effect immediately. Under thenew Ordinance a Capital Value tax (CVt) of0.01 percent has been imposed on the purchaseof shares of a public company listed on one ofthe country’s registered stock exchanges.another change in the law is the omission of the0.01 percent advance tax on the trade value ofshares. the levies that have been keptunchanged are the 0.01 percent advance tax onpurchase value of shares traded in lieu of tax oncommission, 0.01 percent advance tax on salevalue of shares traded in lieu of tax on

commission and 10 percent carry over chargesor advance tax in respect of financing of carryover trades in share business. “the advance taxon trade value of shares collected under section233a (1)(c) has been omitted in the Finance(amendment) Ordinance, 2012,” said the ksE.about the Capital Gains tax (CGt), theExchange said matters pertaining to thepreviously controversial levy were being dealtwith separately by the national ClearingCompany of Pakistan Limited (nCCPL asspecified in the Presidential Ordinance.according to a senior broker, under theassurances made by the federal financeminister the rate of CGt, which was to beincreased up to 12.5 percent in next two years,was to be put on freeze at the existing 10percent by June 2014. the Ordinance providesthat the tax on capital gains would becomputed and collected, through anautomated system, by the nCCPL on behalf ofthe Federal Board of Revenue and woulddeposit the collected amount in a separateaccount in the national Bank of Pakistan. toensure transparency, the PRaL or any otherfirm approved by the FBR would conductquarterly audits of the nCCPL accounts.

KARACHI

STAFF REPORT

THE urea off-take in the country sharplydeclined by 37 percent to 263k tons duringlast month in March. “this is primarily

due to delay in kharif sowing amid unavailabilityof seeds and relatively higher urea prices,” saidFarhan Mahmood of topline securities.interestingly, the analyst said, the sales of localurea during the review month stood at 113k tons,almost one third compared to same month lastyear. this was primarily due to continuousavailability of subsidized imported urea which wasavailable to farmers cheaper than local brands, heviewed. the cumulative figures for Jan-March2012 show that total urea sales stood at onemillion tons which remained lower by 16 percent.However, urea sales by local manufacturers stood

at 493k tons during this period versus 1.1 milliontons last year, down 53 percent. “that is thereason why local manufacturers carried ureainventory of around 535k tons at the end of March2012 along with 265k tons of urea available withthe government,” Farhan said. Following thelower DaP intake in last few months, its salesimproved by 40 percent YoY to 46k tons in March.However, during Jan-March 2012, the DaP salesdeclined by 46 percent to 86k tons due to the factthat where local DaP remained short amidhigher winter gas curtailment, declininginternational DaP prices, since beginning of2012, led importers to opt for wait and see policy,he said. this led to lower availability of DaP inthe market. Moreover, the analyst said, overallfertilizer sales, including urea, DaP and others,stood at 398k tons during the month underreview, marking a decrease of 27 percent YoY.

A taxing tale

ISLAMABAD

ONLINE

THE United states agency forinternational Development(UsaiD)’s Power Distribution

Program, in cooperation with the islamabadElectric supply Company (iEsCO) hasstarted installation of Low tension (Lt)capacitors on rural tube-wells in twoselected feeder of taxila sub-division ofiEsCO. Currently the project is assistingFaisalabad Electric supply Company(FEsCO), Multan Electric Power Company(MEPCO) and iEsCO in capacitorsinstallation. installation of over 700 Ltcapacitors in MEPCO have already resultedin an estimated 3 Megawatt reduction indemand, improved voltage and availabilityof surplus electricity for tube-wells. thisassistance to DisCOs is provided as part ofthe U.s. commitment to support theGovernment of Pakistan in reforming theenergy sector and addressing the problemsof the DisCOs. the U.s. agency forinternational Development (UsaiD)implements these assistance programs,which also support capacity building of

DisCOs’ staff and Board of Directors,installations of equipment to improve powerfactor, institutional development, genderand energy efficiency. “installation of 2600capacitors on tube-wells will reduce thepower demand on the feeders, improvevoltage and reduce technical losses” saidDick Dumford, Chief technical advisor ofUsaiD’s Power Distribution Program. “theUsaiD Power Distribution Program shallcontinue to assist DisCOs to bringimprovements to their systems so the peopleof Pakistan get the best services. Our plan isto replicate capacitors’ installation in otherDisCOs which will further improve powerfactor and reduce losses”. UsaiD’s PowerDistribution Program is a three-year, UsaiD-funded program aimed at working jointlywith government-owned DisCOs in Pakistanto improve their performance in terms ofreduction in losses, and improvement inrevenues and customer services, to bringthem to a level of well-run utilities as in otherprogressive countries. through this program,the United states Government providesassistance and support to the Government ofPakistan (GOP) in its efforts to reform thepower sector to end the current energy crisis.

ISLAMABAD

ONLINE

THE capital markets inPakistan offer transparency,best price and efficient

execution coupled with attractionfor foreigners as equity markettrades at discount as compared toregional valuations. Based on PE(price earning), PBV (price byvolume) and payout, the Pakistanicapital markets trades at lowerlevels as compared to regionalmarkets. such attractiveness mustcatch the eyes of foreign fundmanagers to explore theopportunities offered by thePakistani capital markets.shahid naseem and imran inayatButt, of the securities and ExchangeCommission of Pakistan, said thiswhile making a presentation this atan institute organized by the Ussecurities and ExchangeCommission in Washington, DC.the sECP strives to maintain fair,orderly and efficient markets, theysaid. it protects the rights ofinvestors, facilitates capitalformation and develops an efficient

and dynamic regulatory frameworkin line with the principles of theinternational Organization ofsecurities Commissions (iOsCO).the participants were told thatthe sECP’s has a vast mandate,which includes corporate sectorregulation, regulating securitiesmarkets, commodities market,insurance, pension, privateequity, venture capital, nBFC,debt securities trustees andrating agencies. it is also responsible for theregistration and licensing,supervision, enforcement,adjudication, appellate bench,investors’ education and awareness,development of legal framework,implementation of corporategovernance and aML (anti-moneylaundering) and administration ofprofessionals. it was highlightedthat after the 2008 stock marketcrash (when the index fell from15,500 to 4,500 points), due tosuccessful reform process led by thesECP the index has successfullyrecovered by almost 200 percent.With the recent developments onthe regulatory and operational front

and future roadmap, the Pakistanicapital market will be comparablewith developed internationaljurisdictions that meet the iOsCObenchmarks. the internationalinstitute for securities Enforcementand Market Oversight for the past18 years has been one of the UssEC’s flagship programs to promotethe quality of securitiesenforcement programs around theglobe, and strengthening anddeepening internationalcooperation among securitiesregulators.this time over 180 regulators fromabout 73 countries and jurisdictionsfrom around the world are havingintensive training and discussionson the most significant issues ofsecurities enforcement. the ongoing seminar is providingan opportunity to participants tobrainstorm on and learn from thechallenges faced by the capitalmarkets around the globe. . it wasa rare opportunity for thePakistani regulator to address suchan institute, showcase Pakistancapital market and interact withfellow regulators.

Americans are comingto fix our tube wells

our capital markets offer best opportunitiesto foreign investors… no really, they do

KSE’S REVISED StRUCtUREEVoLUtIonARY IDEAS

MISERABLE MARCH

UnCLE SAM tURnS MECHAnIC SECP’S PARALLEL UnIVERSE

Urea’s precipitous plungeg Urea off-take marks a sharp decline of 37 percent in March

g USAID to provide technical assistance to improveefficiency of tube wells

g Based on PE, PBV, payout, our markets trade at lower levels

President issues ordinance toexempt stock investors fromdeclaring source of income

g Advance tax on shares value replaces CVt on share purchase at KSEon the origin ofincomes

PRO 27-04-2012_Layout 1 4/26/2012 11:37 PM Page 2

news

Friday, 27 April, 2012

03

Brightest star in the field of Luxury prêt

KARACHI: ayesha khurram, who is easily one of thebrightest stars in the field of luxury prêt and prêt in Pak-istan, recently held a two day exhibition at EllemintPret. this multi-brand store located off khyaban-e-shamsheer is an extremely popular shopping destina-tion for young women who are eager to get their handson reasonably priced prêt. ayesha khurram, one of thefounding designers at Ellemint Pret, exhibited hershowcases 2012 collection in the exhibition. this col-lection was put together as a compilation of the pop artinspired luxury prêt the designer has become renownedfor. “i wanted to send down the ramp some of my mostpopular and memorable designs in one go almost as thehighlights of the best work of my career,” said the soft-spoken Lahore based designer who stocks at numerouslocations in Pakistan and abroad. PRESS RELEASE

nBP signs alliance with Ria FinancialServices, expanding its outreach tooverseas PakistanisKARACHI: national Bank of Pakistan, one of the largestBank in Pakistan, has entered into a Remittance agree-ment with Ria Financial services, a wholly owned sub-sidiary of Euro net World-wide, inc. Ria Financial serviceswas founded in 1987 and today is recognized as the thirdlargest money transfer company in the world, with globalagent network of 140,000 locations in over 136 countriesin five continents. this new partnership will facilitate Pak-istani expatriates around the world in sending money totheir families and friends in Pakistan by simply visitingany Ria Financial services agent location world-wide. theamount remitted from abroad can be collected from anyof the nBP’s 1277 branches across Pakistan. in order to re-ceive cash remittance, it can be instantly collected via nBPForee Cash, even without having a bank account. nBPForee transfer offers immediate credit to individual ac-counts in over 1200 online branches. Established by nBP,the Global Home Remittances Management Group, is a

dedicated center to serve expatriate remittances flowinginto Pakistan. PRESS RELEASE

nBP goes on-line for higher customercare, says nBP ChiefKARACHI: While addressing the Branch Managersand Operation Manager at the conclusion of the 3-weekEffective Branch Management training for 3 rd batchat nBP, Head Office, Mr. Qamar Hussain, President-nBP announced that over 1,200 branches all over thecountry have been made “Online” to improve customerservices. Further, the core banking solutions will be im-plemented in all major branches by the end of this yearto take leadership position in technology. He urgedupon all Branch Managers who had come from all partsof Pakistan to attend this program to take full benefit oftraining to better serve the customers and increase theirtrust & confidence in nBP. He also announced that themanagement will continue to look after its employees.With the Bank’s improved financial results, its employ-ees will also be benefitted accordingly. nBP Chief statedthat training activities are being revamped to developthe human resource of the Bank to successfully meet theemerging challenges facing the Bank. PRESS RELEASE

UBL enters into a nation-wide alliance with ShapesKARACHI: UBL signed a nationwide alliance dealwith shapes Health Club on tuesday, april 24, 2012 atthe UBL Head office, karachi. this alliance will pro-vide value-added services to the bank’s High net Worth(HnW) customer base and will further augment in pro-moting the bank’s products to an affluent target mar-ket. it will further boost the bank’s image specificallyin the HnW segment. through the alliance UBL signa-ture and Platinum card members will be given accessto the shapes Health Club nationwide facilities and dis-counts on membership for all other UBL cardholders.Furthermore it will also allow for UBL Branding andatM placement at shapes sites, nationwide. Present atthe ceremony, on behalf of shapes were Mr. Muham-mad Omer Farooq, Managing Director, shapes, alongwith other senior executives. Representing UBL wereMr. najeeb agrawalla, GH-Marketing, Mr. asif Fatahshaikh, Divisional Head-Legal and other senior execu-tives of the bank. PRESS RELEASE

LG announces first-quarter 2012 financial results LAHORE / SEOUL: LG Electronics inc. (LG) todayannounced that after two consecutive quarters of netlosses, the company has turned the corner with a net

profit of kRW 243 billion (UsD 214.9 million), a directresult of the company’s efforts to innovate in all keybusiness units and focus on high performing products.Unaudited consolidated financial results, based oniFRs (international Financial Reporting standards)for the quarter ending March 31, 2012, showed consol-idated revenues of kRW 12.2 trillion (UsD 10.8 bil-lion) with an operating profit of kRW 448 billion (UsD396.1 million). this compares favorably to the consol-idated operating profit of kRW 280 billion for all of2011. LG Home Entertainment Company posted sig-nificantly improved operating profit in the quarter,compared with the same period a year ago. sales, whilestrong at kRW 5.3 trillion (UsD 4.7 billion), declinedby 6.8 percent compared with the first-quarter of 2011,largely due to the a sluggish European economy. Duein large part to the popularity of new products such asCinEMa sCREEn 3D smart tV in the korean marketand improvements in supply chain management, op-erating profit nearly doubled to 217 billion (UsD 191.9million) from the same period the previous year. LGwill leverage upcoming big ticket sporting events andthe global roll-out of LG’s redesigned 2012 tV modelsto stimulate higher demand for its Home Entertain-ment products. PRESS RELEASE

LUCK reports almost double profit in 9MFY12KARACHI: the Board of Directors’ of Lucky CementLimited (LUCk) has announced 9MFY12 financial per-formance of the company today. in line with our expec-tations the company has reported almost double profit(1.89 times) in 9MFY12 as the company has registered anenormous 89% YoY growth in its Profit after tax (Pat)to PkR4.69bn translating into an EPs of PkR14.49 asagainst the Pat of PkR2.48bn (EPs of PkR7.65) in thecorresponding period last year. in our view, the massiveupsurge in the bottom line was primarily backed by thegigantic rise in the top line of the company which hasreached at PkR23.95bn in 9MFY12 as against the salesof PkR18.53bn in same period last year. the stupendousboost in monetary sales was mainly driven by higher re-tention prices which were up by 25% YoY to PkR425/bagas against PkR339/bag in the same period last year,whereas, volumetric sales was seen higher by 2% to4.37m tons as against the sales of 4.28m tons. the grossprofit of the company has registered a gigantic rise of50% YoY to PkR9.06bn in 9MFY12 over PkR6.03bn in9MFY11. Operating costs were seen higher by 4% YoY toPkR2.84bn as against operating costs of PkR2.73bn in9MFY11 owing to higher administrative expenses whichhas increased by 70% YoY to PkR364 in 9MFY12. Con-versely, financial charges witnessed a decline of 29% YoYto PkR294m in 9MFY12 as against PkR412m in sameperiod last year. the substantial decline in financialcharges was because of lower long term debts. Resul-tantly, the company has reported a substantial 105%jump in PBt to PkR5.64bn in 9MFY12 as against thePBt of PkR2.69bn in 9MFY11. PRESS RELEASE

CORPORATE CORNER

Major Gainers

Company Open High Low Close Change Turnover

Unilever Food 2132.62 2239.25 2101.00 2239.25 106.63 147Pak Gum & ChemXD 122.79 128.92 118.10 128.92 6.13 9,028Pak Oilfields 387.69 399.99 385.05 392.26 4.57 1,291,340Shezan Inter. 146.05 151.00 148.00 150.32 4.27 50,008Pak Suzuki MotorXD 79.23 83.19 78.50 83.19 3.96 234,709

Major Losers

Nestle Pakistan Ltd. 4304.04 4369.00 4088.84 4091.26 -212.78 328UniLever Pak Ltd 6250.91 6399.00 6000.00 6215.30 -35.61 501Wyeth Pak Ltd.XD 740.00 750.00 703.50 708.74 -31.26 1,058Millat Tractors 515.18 520.00 503.00 503.39 -11.79 18,066Bata (Pak) XD 675.57 690.00 651.00 664.49 -11.08 157

Volume Leaders

Jah.Sidd. Co. 17.92 18.92 16.92 16.92 -1.00 37,990,244IGI Inv.Bank 3.55 3.90 3.15 3.24 -0.31 17,105,553P.T.C.L.A 13.37 13.75 12.62 12.71 -0.66 17,078,709Fauji Cement 6.52 6.70 6.20 6.28 -0.24 16,166,093D.G.K.Cement 42.29 43.25 40.18 40.25 -2.04 14,752,782

Interbank RatesUs Dollar 90.8135Uk Pound 147.0089Japanese Yen 1.1225Euro 119.9919

Dollar EastBuy Sell

US Dollar 91.20 91.80Euro 120.00 121.03Great Britain Pound 146.82 148.04Japanese Yen 1.1196 1.1288Canadian Dollar 91.97 93.24Hong Kong Dollar 11.60 11.76UAE Dirham 24.76 24.94Saudi Riyal 24.26 24.43Australian Dollar 93.71 95.94

KARACHI

STAFF REPORT

tHURsDaY saw the bench-mark index at karachi stocksmarket nose-diving by151.65 points or 1.07 percent

on the back of political uncertaintyarising from the supreme Court’s con-viction of the Prime Minister in thecontempt of court case.

the ksE100-share index closed at14,066.09 points compared to14,217.74 of the previous session. theksE 30-share index shed 111.60 pointsto close at 12,360.72 points as com-pared with 12,472.32 points.the ana-lysts said even the positive impacts ofthe newly-promulgated PresidentialOrdinance could not restore the in-vestors’ sentiments that shatteredsoon after the reports of Prime Minis-ter’s conviction were aired by the tele-vision channels early in the morning.

the market turnover also remainsnegative and traded 270.527 millionshares after opening at 306.800 millionshares. the overall market capitaliza-tion declined 0.09 percent and tradedRs 3.594 trillion as against Rs 3.634 tril-lion. Losers outnumbered gainers 98 to208, while 66 stocks were unchanged.

the kMi 30-share was down by155.01 points to close at 24,384.01points from its opening at 24,503.02points. the ksE all-share index closedwith a loss of 109.13 points to 9,868.95points as against 9,978.08 points.

Jahangir siddiqui Company Lim-ited was the volume leader in the sharemarket with 37.990 million shares as itclosed at Rs 16.92 after opening at Rs17.92, declined 1 rupee. iGi investmentBank traded 17.105 million shares as itclosed at Rs 3.24 after opening Rs 3.55loosing 29 paisas. P.t.C.L.a traded17.078 million shares as it closed at Rs12.71 from its opening at Rs 13.37, de-creasing Rs 66 paisas. Fauji Cementtraded 16.166 million shares and closedat Rs 6.28 as against its opening at Rs6.52, shed by 24 paisas. D.G.k Cementtraded 14.752 million shares as it closedat Rs 40.25 as compared to its openingat Rs 42.29, decreasing Rs 2.4 rupee.

On the future market, the turnoverdecreased to 21.099 million against22.367 million shares of Wednesday.the Unilever Food and Pakistan Gum &Chemical XD and, up Rs 106.63 and Rs6.13, led highest price gainers while,nestle Pakistan XD and, Unilever Pak-istan Limited down Rs 212.78 and Rs35.61 respectively, led the losers.

Bears throw a partyafter SC convicts PM

RE$ERVE$ $LIDE g Dollar reserves fall to $16.422bnKARACHI: the week in review saw the country’s dollarreserves contracting by 1.0 percent or $ 180 million up toapril 20. according to central bank, the country’s holdings ofthe greenback shrank to $ 16.422 billion against 16.602billion of last week that ended on april 13. Of the totalreserves, the state Bank held $ 11.916 billion, down by 55million when compared with $ 11.971 billion of last week.the commercial banks too counted their dollar reserveslower at $ 4.505 billion against $ 4.631 billion of thepreceding week, registering a slump of $126 million. thesBP spokesperson attributes such up and downs in thebanks’ reserves mostly to routine deposit and withdrawal ofcash by the account holders. STAFF REPORT

‘Increasing education budgetwould solve most issues’ISLAMABAD: President islamabad Chamber of Commerceand industry (iCCi) Yasir sakhi Butt thursday said that thereis a dire need to increase the educational budget becausewithout education, Pakistan could not address the challenges.the iCCi President said that Government should encourageresearch in higher education institutions that would accelerateeconomic growth of the country. He said that Pakistan was nowon just twelve countries that spend less than 2 percent of GDPon education, although education enjoyed the highest priorityon the social sector agenda, which as a whole was poorlyfunded when compared to defence, general administration anddebt servicing. Yassar sakhi Butt referred to a report that showsthe budgetary allocation for education sector in variouscountries as per their GDPs; Cuba 18.7 percent of GDP, Brunei9.1 percent, iran 4.9 percent, sweden 7.7 percent, Uk 5.3percent, Us 5.7 percent, Malaysia 8.1 percent, Yemen 9.5percent, india about 6 percent and Pakistan allocated less than2 percent of GDP for education sector. ONLINE

g KSE index plunges by 152 points on political uncertainty

oIB tobranch outg oIB may sell India and

Pakistan branches MUSCAT

ONLINE

OMan international Bank (OiB),which has announced a mergerplan with HsBC Oman, proposes

to either sell or close down its overseasbranches in india and Pakistan. the bankwill seek permission from itsshareholders for the same at anextraordinary general meeting (EGM)scheduled for May 9. OiB has fiveoverseas branches — three in Pakistanand two in india. the extraordinarygeneral meeting will also consider aboard proposal to issue 1.02 billionordinary shares in the bank to HsBCBank Middle East Limited inconsideration of HsBC Oman beingmerged by incorporation into the bank.the total issued and fully paid capital ofthe bank will consist of two billion sharesof 100 baisas each with 51 per cent of thetotal shares held by HsBC Bank MiddleEast Limited. Under the terms of themerger, HsBC will inject an additionalcapital of up to $97.4 million in cashfrom its internal resources into HsBCOman and the business of HsBC Omanwill then be merged with OiB, HsBC saidin a press statement, after announcingthe merger plan. the company is alsoseeking an approval from shareholdersfor increasing the authorised capital ofthe bank from RO100 million to RO750million (divided into 7.5 billion shares of100 baisas each), subject to completion ofthe merger. Other agendas of the EGMinclude a plan to enter into the servicesagreement with HsBC Bank Middle EastLimited and to enter into the brandingagreement with HsBC Holdings plc —both to become effective on completion ofthe merger. the HsBC Group will providecertain support services to HsBC BankOman under a services agreement withan initial term of ten years, according tothe press release. the board is alsoseeking shareholders’ approval forchanging of the name of the bank toHsBC Bank Oman saOG, subject tocompletion of the merger.

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