Friday, 31 August, 2012

g Banks asked to process claims of textile industry against TUF scheme

PARIS/FRANKFURT/BRUSSELS

AFP

The eurozone crisis tops a list of threatsto the global economy followed by therisk of a “hard landing” in emergingeconomies, ratings agency Moody’s In-vestors Service said on Thursday.

“The main risks to the global macrooutlook stem from a deeper than cur-rently expected recession in the euroarea, for example caused by deepercredit contraction,” Moody’s said in itslatest macro-risk report.

The agency then underscored “therisk of a hard landing in major emerging

market economies, including China,India and Brazil,” followed by “an oil-price supply-side shock resulting fromresurfacing geopolitical risks.”

Finally, “the risk of sudden andsharp fiscal tightening in the US in 2013,given recent political gridlock” roundedout the list of major threats to businessactivity worldwide, Moody’s said.

It forecast overall economic growthof the G20 group of industrialised andemerging economies this year at 2.8 per-cent, a rate that could rise to 3.4 percentin 2013. In general, Moody’s said thatrisks to its global forecast were largerthan foreseen in its previous report.

FURCHTBAR

A complete collapse of the eurowould shave up to 10 percent off the Ger-man economy and even just the depar-ture of Greece from the currency clubbears substantial risks to business, ac-cording to government economic advisorLars Feld. Feld, one of five “wise men”economists whose views help shape thepublic debate in Germany but often havelittle direct impact on policy, said recentestimates by the group suggested Ger-many’s gross claims from the euro zoneare about 3.5 trillion euros. “When agood part of the claims would go in de-

fault, there would be insolvencies insmall and medium-sizes firms and theeconomy would be hit,” Feld told aFrankfurt journalist club Wednesdaynight in remarks slated for publicationon Thursday.

AGONIZING AUGUST

European business and consumer con-fidence fell sharply in August, with Spainreporting the biggest drop among majoreurozone economies while France saw arise, the European Union said on Monday.

The Economic Sentiment Indicatorproduced by the European Commissionfell to 86.1 points across the 17-nation

eurozone, down 1.8 points from Julyafter its fifth consecutive monthly slide.

The indicator remained well belowits long-term average of 100 points. Theloss in confidence was particularlystrong among consumers, retail tradeand construction managers.

Spain’s score fell by 4.9 points andItaly by 2.4 points. Germany dropped by1.0 point whereas France posted a 0.4-point improvement. The Netherlandswas up by 0.6 points. Confidence in theeurozone service sector slid by 2.3 points.The comparable figure for industry re-mained broadly stable, although it fellmarkedly across the wider 27-nation EU.

EUROZONE CRISIS IS PRETTY DARN SERIOUS ACTUALLY Moody’s calls it the main threat to global economy, Lars Feld believes Euro breakup would cost Germany 10 percentof GDP, while the EU says the zone’s economic sentiment has taken a nosedive in August. Ominous signs indeed

KARACHI

STAFF REPORT

THE central bank Thursdayasked the banks and devel-opment finance institu-tions (DFIs) to processclaims for the provision of

mark-up and investment support to thetextile industry under the TechnologyUp-gradation Fund (TUF) scheme of thefederal government.

TUF scheme, notified by the Min-istry of Textile Industry (MINTEX),would encourage investment for up-gra-dation of machinery and technology intextile industry.

The banks and DFIs shall processthe claims for “mark-up support” and“investment support” from the industryduly registered with MINTEX, said theState Bank.

However, it said, the banks and

DFIs have been asked to forward the el-igible claims after their scrutiny alongwith Certificate of Commissioning ofmachines and commercial operations is-sued by MINTEX, separately for eachsupport, strictly in compliance with theterms and conditions prescribed in theministry’s notifications to the offices ofSBP-BSC.

Under the scheme, the claims for‘Mark-up Support’ may be submitted on‘Form TUF-I’ along with the documentsprescribed in claim form. Only loansdisbursed on or after Sept 1, 2009 are el-igible for the mark up support.

Under the scheme, the federal gov-ernment may reimburse 50pc of mark-up subject to a maximum of 5pc perannum, whichever will be less. However,one company registered as a separatelegal entity would be eligible for a max-imum mark-up support of Rs 50 millionper annum for each sub-sector.

The mark-up support shall be ad-missible on the principal amount ofloans outstanding on reducing balanceon daily product basis, as per OriginalRepayment Schedule. The support shallnot be extended to the borrowers havingnon-performing loans, classified underSBP Prudential Regulations unless thesame are rescheduled or restructured bythe financing bank(s).

Further it would also make the bor-rowers ineligible for availing the supportduring remaining period of the loan ifany of their loans, long or short term,are classified after introduction of thissupport.

Similarly, the claims for investmentsupport may be submitted on ‘FormTUF-II’ along with the documents men-tioned in the claim form. The federalgovernment may provide up-to 20pc in-vestment support to SMEs (as definedunder SBP’s Prudential Regulations for

SMEs) for import of new plant and ma-chinery upto Rs 10 million, throughloans or from their own sources. Fur-ther, the federal government may alsoprovide 5pc investment support to Non-SMEs and other eligible projects againstimported new plant and machinery,through their own sources.

Under the scheme, the equity in-vestment means financing of importedmachinery and technology throughown sources and that would be deter-mined from C&F value of eligible ma-chinery/technology mentioned in LCretired for this purpose. SMEs canalso import eligible machinery/tech-nology through Contract. However, toclaim investment support, such SMEsshall be required to produce reliableevidence about actual import of requi-site machinery/technology and pay-ment to the foreign supplier throughbanking channel.

Banks referee in MINTEX, TUF match up

KARACHI

STAFF REPORT

Faysal Bank Limited launched Union-Pay Debit Card for first time in thecountry’s banking history.

Held here at a local hotel thelaunching ceremony was attended byFaysal Bank President and CEO NavedA. Khan, and International PresidentUnionPay Larry Wang

Also present on the occasion wasState Bank of Pakistan Deputy Gover-nor Kazi Abdul Muktadir.

UnionPay is one of the fastestgrowing payments technology compa-nies in the world. Its cards are acceptedat over 1.7 million ATMs and 5 millionPOS terminals, in more than 125 coun-tries. It has a card base of over 2.8 bil-lion globally, which makes it one of thelargest payment schemes in the world.Faysal Bank is among the top 10 banksin Pakistan, with over 260 branches inmore than 70 cities. With this cardlaunch, Faysal Bank will not only bethe first bank in the country but also inSouth Asia, Middle East and NorthAfrica to issue UnionPay Cards Fur-thermore, in order to facilitate andprovide banking convenience to inter-national UnionPay customers visitingPakistan, Faysal Bank has also enabledits network of over 240 ATMs to acceptall UnionPay cards.

On the occasion, Naved A. Khan

said: “I am extremely pleased thatPakistan is the first country in the re-gion to issue UnionPay Cards, andFaysal Bank is the first bank in Pak-istan to offer UnionPay services to itscustomers.” Talking about relationsbetween Pakistan and China, Khansaid Pakistan and China had a verystrong relationship in terms of trade,development and services.

He hoped this partnership wouldpave the way for other Chinese compa-nies to invest in Pakistan, furtherstrengthening mutual time-tested

friendship. This milestone was in linewith our mission of introducing inno-vative products in the market, and willprovide further impetus to our aggres-sive growth plans”.

Larry Wang said: “Pakistan andChina have been enjoying positivediplomatic relations for over 60 years.This agreement would not only furtherstrengthen those ties, but would alsoprovide better support to the tradercommunity that frequently travels in-ternationally for business purposes,especially to China.”

Faysal Bank launchesUnionPay debit card

President and CEO Faysal Bank Naved A. Khan and President UnionPay International Larry Wang

shake hands at launch ceremony of UnionPay Debit Card held here at a local hotel Thursday.

ASEAN can save usfrom biryani droughts

ASEAN nations can help

prevent global rice price rise

ISLAMABAD

APP

ASEAN nations can help avoid world riceprice shocks by reducing export restrictions,placing less emphasis on self-sufficiency, re-tooling Thailand’s rice pledging program,and expanding coordinated rice policieswith India and Pakistan, according to a se-ries of working papers from the Asian De-velopment Bank (ADB). “So far, the ricemarket appears to be holding steady andcurrent production estimates suggest thatoverall prices will remain stable, which isgood news in a time of worry over the globalcorn, wheat, and soybean markets,” saidADB for Agriculture, Food Security andRural Development in the Regional Sustain-able Development Department’s PracticeLeader Lourdes Adriano. “To enhance re-siliency and ensure that rice prices do notjump beyond the reach of the region’s poor,policy makers must think and act region-ally,” Adriano said. The 2007-2008 riceprice spike was triggered in part by exportrestrictions, and panic buying by importers.The working papers, produced out of the re-cent ASEAN Rice Trade Forum organizedby the ASEAN Food Security ReserveBoard, the ASEAN Secretariat, and ADB,show regional trade restrictions pushedglobal rice prices up 149%. Instead, the pa-pers recommend that rice importing coun-tries lower their self-sufficiency targets inexchange for commitments from exportingcountries to stay away from unilateral ex-port restrictions.

PSM orders 0.11m

MT coal as NBP

opens LCsKARACHI

STAFF REPORT

The Pakistan Steel has opened two Letterof Credits for the purchase of 0.11 millionmetric tons of coal after the clearance ofNational Bank of Pakistan on Wednes-day. These LCs were opened on release ofthe first trance of the bailout package an-nounced by the government against thebusiness plan of Pakistan Steel, said thePSM spokesman on Thursday.The National Bank, he said, opened theLCs for the purchase of two shipments ofcoal from Australia and Canada contain-ing 55,000 metric tons each and a totalof about 0.11 million metric tons of coal.Pakistan Steel is currently in dire need ofraw materials including coal and iron orewhich are being imported from Canadaand Australia.Moreover, the purchase of iron ore isalso in process and soon iron ore ship-ments will be finalized after completionof necessary formalities. Pakistan SteelChief Executive Officer Major General(Retd) Mohammad Javed commendedthe efforts of PSM finance departmentfor its role in the arrangement of the LCsthrough the bailout package.He expressed the hope that after theavailability of raw materials in continuityPakistan Steel’s production level wouldimprove according to the business plan.

Refinery sales

up 6pc in JulyKARACHI

STAFF REPORT

Though volatility in the international oilprices continue to induce volatility in thedomestic refinery operation, but therethroughput increased by 6pc in July to697k tons as against 659k tons in thesame month last year.“The improved throughput from Attockgroup refineries i.e. ATRL and NRL werethe primarily reason behind higher sales,while Byco sales also played its role as itwas shutdown in the comparable periodlast year,” said the Topline analyst Nau-man Khan.Furthermore, he said, despite this higheroutput, the country’s reliance on the im-ported fuel increase, with local produc-tion fulfilling only 44pc of domesticdemand as against 46pc last year.“Uncertain outlook for the refinery mar-gins may lead to sector’s underperfor-mance going forward, but we have likingtowards ATRL on the back of i) superiorproduct mix, ii) group synergies and iii)portfolio value,” said Khan. Domestic re-finery operated at approx. 71% capacityin July 2012 as against 67% in July 2011primarily on account of increasedthroughput from ATRL and NRL.

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02

Friday, 31 August, 2012

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERRafhan MaizeXD 3885.00 3977.99 3977.99 3977.99 92.99 20Bata (Pak) Limited 1007.73 1058.11 960.00 1058.11 50.38 3,300Exide (PAK) 294.65 309.38 297.45 309.38 14.73 37,000National Refinery 236.58 248.40 237.00 248.40 11.82 451,400Indus Dyeing 390.00 401.00 370.50 400.19 10.19 1,000

Major LosersWyeth Pak Limited 1010.00 1010.00 960.00 960.00 -50.00 350ZIL Limited 108.27 109.00 103.00 103.00 -5.27 1,000Sitara Chemical 154.95 154.00 150.25 150.93 -4.02 2,900Service Industries 179.24 188.20 170.28 176.00 -3.24 18,300Javedan Corporation 92.50 90.20 90.20 90.20 -2.30 500

Volume Leaders

P.T.C.L.A 16.38 17.38 16.45 17.04 0.66 23,899,000Telecard Limited 2.44 2.99 2.55 2.75 0.31 18,992,000Jah.Sidd. Co. 15.60 15.80 14.60 14.75 -0.85 16,571,500Engro Foods Ltd. 69.22 72.68 69.50 72.65 3.43 11,397,000B.O.Punjab 8.39 9.25 8.63 8.87 0.48 11,340,500

Interbank RatesUS Dollar 94.5671UK Pound 149.7092Japanese Yen 1.2025Euro 118.7101

Dollar EastBUY SELL

US Dollar 94.40 94.90Euro 117.16 118.37Great Britain Pound 148.24 149.72Japanese Yen 1.1899 1.2017Canadian Dollar 94.12 95.57Hong Kong Dollar 11.98 12.17UAE Dirham 25.58 25.81Saudi Riyal 25.04 25.26

Australian Dollar 96.29 98.70

Business

Allama Rasheed Turabi Foundation and Trust President

and renowned international scholar Dr Allama Salman

Turabi distributing the various food items amongst the

deserving families under Tanzeem e Karwan e Najaf.

USAID program enhances

training, support for CAs

KARACHI: U.S. Agency for International De-velopment (USAID), Deputy Mission Director,Edward Birgells, witnessed MoU signing be-tween Institute of Chartered Accountants ofPakistan (ICAP) President Rashid Rahman andChief of the Party for the USAID Azhar Saeedon funded Assessment and Strengthening Pro-gram Associates in Development (ASP-AiD) onThursday.

NTDCL, KESC payment

schedule misconceptions

LAHORE: The spokesman of National Trans-mission and Despatch Company Limited(NTDCL) has said that there are misconcep-tions regarding the payments schedule ofKarachi Electric Supply Company (KESC) whichare being published time to time in various sec-tions of press.

Ufone celebrates Eid with the

children of SOS village

ISLAMABAD: Ufone recently hosted Iftar andEid celebrations at SOS children’s villages in Is-lamabad and Quetta to help make the under-privileged children part of the celebrationsassociated with Ramazan and Eid ul Fitar.

FUMC students depart for

Malaysia to represent Pakistan

at IMSPQ competition

LAHORE: Foundation University Medical Col-lege (FUMC) team departed for Malaysia to par-ticipate in 10th International Medical SchoolPhysiology Quiz (IMSPQ).

Samsung launches the exciting

C3780 - a business-ready

mobile phone

LAHORE: Samsung Electronics, a marketleader and award-winning innovator intelecommunications and consumer electronicshas now introduced the fascinating C3780 -Amobile phone that knows how to do businesswith its Optical Track-Pad, a 2.4 inch largeLCD and a 3MP camera that optimizes yourbusiness experience.

Dr Arbab Alamgir severely

condemns blasts on M-1

ISLAMABAD: Federal Minister for Communi-cations Dr. Arbab Alamgir Khan has said thatthe terrorists will never come out successful intheir nefarious designs and government willcontinue to provide security to the life andproperty of the people. Construction processwill be geared up for national development. Hewas talking to the media men after inspectingthe police check-posts damaged by the bombblast last night located between Rashakai In-terchange and Charsadda on Islamabad-Pe-shawar Motorway (M-1).

IBA, Karachi hosts workshop on

Financial Crisis Management

KARACHI: IBA, Karachi hosted a one-day work-shop on Financial Crisis Management led by localand foreign industry experts and IBA faculty atthe Center for Executive Education (CEE) onThursday.

CORPORATE CORNER

The Pakistan Japan Business Forum (PJBF) hosted a

farewell dinner for the outgoing Consul General of Japan,

Masaharu Sato yesterday. Picture shows PJBF President

Sohail P.Ahmed, Secretary General Kalim Farooqui, with

Executive members and Chief Guest,

KARACHI

STAFF REPORT

THE dominated matters in theKarachi stocks market on Tuesdaywith benchmark, KSE 100-shareindex gained 102.40 points. Theday saw the index clos-

ing up by 0.68 percent at 15,253.71points against 15,151.31 points ofWednesday.

Pakistan Stocks closed bullishled by oil and telecom stocks onstrong valuations. Investors tookpositions in growth stocks afterstrong earning announcements and recov-ery in global commodities. This was statedby Ahsan Mehanti, Director at ArifHabib Investments Limited.

On Thursday, the trading volumesat the ready-counter were recordedhigher at |223.722 million sharesagainst 203.644 million shares of theprevious day. The trading value in-creased to Rs 6.879 trillion comparedto Rs 4.204 trillion of the previoussession. The intraday high and low, re-

spectively, stood at 15,292.18 and 15,151.31points.

He added that the improved refinery mar-gins, renewed foreign interest, hopes for earlysettlement of judicial issues and improved eco-nomic outlook on back of lower expected CPIInflation for August played a catalyst role in

bullish sentiments despite concerns for rising

circular debt in Pakistan Energy sector.The market capitalization increased to Rs

3.885 trillion from Rs 3.861 trillion a day ear-lier. Of the total 325 traded scrips, 198 gained,101 lost and 26 finished as unchanged.

The free-float KSE-30 index also gained79.87 points to close at 13,070.42 pointsagainst the previous 12,990.55 points.P.T.C.L.A was the day’s volume leader countingits traded shares at 23.899 million with theopening and closing rates standing at Rs 16.38and Rs 17.04, followed by Telecard Limited, Ja-hangir Siddiqui Company, Engro Foods Lim-

ited and Bank of Punjab with turnoverof 18.992 million, 16.571 million,11.397 million and 11.340 millionshares respectively. On the futuremarket, the turnover remains higherby over two million shares to 17.514million against 15.047 million shares

of last day.The Rafhan MaizeXD and Bata

Pakistan Limited, up Rs 92.99 and Rs50.38, led highest price gainerswhile, Wyeth Pakistan Limited andZIL Limited, down Rs 50.00 and Rs

5.27 respectively, led the losers.

Bulls run over 100-point barrierOil, telecom instigate bull stampede

DOLLAR WEAKENS IN ASIATOKYO: The dollar weakened in Asia Thursday after new US datagave a cautious view of the world’s largest economy while marketsawaited a speech by the US central bank chief for signs of fresh stimu-lus. The greenback dipped to 78.62 yen against 78.70 yen in New Yorktrade late Wednesday, while it also weakened against the euro with thecommon currency buying $1.2534 from $1.2526 in US trade. The eurobought 98.54 yen in Tokyo, from 98.61 yen in New York. The US dollarwon an initial boost after second-quarter US economic growth figureswere revised upward to 1.7 percent from 1.5 percent on Wednesday,while pending home sales data for July also came in strong. AFP

Oil mixed as US facilities avoid hurricane’s fury

SINGAPORE: Crude oil prices were mixed in Asian tradeThursday as supply concerns eased after Hurricane Isaac leftproduction facilities in the US Gulf of Mexico relatively un-scathed, analysts said. New York’s main contract, light sweetcrude for delivery in October, shed 51 cents to $94.98 a barreland Brent North Sea crude for October was 11 cents higher at$112.65. Fears about disruption to supply in the US Gulf fromHurricane Isaac had depressed prices but in the end proved un-founded, said Sanjeev Gupta, who heads the Asia-Pacific oil andgas practice at Ernst and Young. “Most of the production facili-ties were shut down in advance of the storm, but early reportsindicated fairly limited supply disruptions, thus taking some ofthe pressure off prices,” he told AFP. The Gulf of Mexico is thehub of US offshore energy production, accounting for 23 percentof crude oil output and 7.0 percent for natural gas. AFP

HBL to start franchise banking

PESHAWAR: Habib Bank Limited (HBL), Regional GeneralManager (Operation), Afaq Zaidi has said that the bank wasgoing to start franchise banking, which will remain open from9:00 A.M to 9:00 P.M. Talking to APP here Thursday, he saidthat in first phase franchise banking besides other big cities ofthe country will also be started in Peshawar and Mardan dis-tricts of Khyber Pakhtunkhwa. The system, he said would belater extended to more cities. The facility, he said will benefitthose who are not having bank account and they could be easilytransfer money through mobile phones. The transaction, hesaid will take only one minute. In the second phase, beginningfrom October 1, 2012, the facility will be extended to overseasPakistanis, through which they will be able to transfer their re-mittances any time and their families will easily collect them inany city of the country. APP

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