Thursday, 15 November, 2012

ISLAMABAD

ONLINE

The growing incidence of natural disas-ters in Asia and the Pacific—where four offive cities globally classified as at extremerisk are located—threatens to undermineseriously rapid economic progress, call-ing for a much stronger focus among gov-ernments on disaster prevention.

This is revealed in a new study “Inde-pendent Evaluation at the Asian Develop-ment Bank.

“We have thought for too long thatnatural disasters come and go, that theyare just an interruption to development,and that they can be dealt with after theystrike,” says the Director General of Inde-pendent Evaluation, Vinod Thomas.“However, there is growing internationalrecognition that the incidence and impactof natural disasters are increasing be-

cause of persistent poverty, populationgrowth, and climate change.”

In its review of ADB’s disaster-relatedprojects and programs, the study notesthat disaster prevention accounted forone-third of investment, compared withtwo-thirds spent on disaster recovery.Yet, by some measures, one dollar in-vested today in reducing disaster risksaves at least four dollars in future reliefand rehabilitation costs.

The independent evaluation studyfinds that ADB’s disaster-recovery proj-ects have been much more successfulthan ADB-supported projects overall. Butmany of them had the limited objective ofrestoring particular types of infrastruc-ture, rather than rehabilitating liveli-hoods, or increasing disaster resilience.So far, very few countries have focused onthe disaster risks in their economic devel-opment plans. Member country govern-

ments and ADB must do more to high-light the need for investment in disasterprevention, not just in infrastructure, butalso in relation to social development.

During 1995–2011, ADB provided

funding of $10.37 billion for 264 naturaldisaster interventions, including 104loans for $8.55 billion.

A special review of ADB’s disaster re-sponse programs in Bangladesh, Indone-sia, and Pakistan finds several areaswhere ADB and the rest of the develop-ment community could improve both dis-aster response and preparation.

In Bangladesh, for example, ADB hasbeen efficient at renovating damagedroads and bridges. But it can support theproactive and successful disaster man-agement programs the government hasimplemented. These programs have dra-matically lowered deaths in this disaster-prone delta-region caused by regular,powerful cyclones. In a storm in 1997, forexample, 111 were killed in contrast with300,000 people in a similar storm in1970.

Another lesson learned in the earth-

quake-tsunami response is the hugelycomplex needs such disasters create.“You cannot simply rehabilitate roadsand bridges and then build temporaryshelter. Often, poverty, gender, ethnic is-sues, property rights and other problemscompound the difficulties and requiremuch greater attention and capacity forresponse from the development commu-nity,” says Tomoo Ueda, Principal Evalu-ation Specialist and the main author.

In Pakistan, where the country’s de-fense forces have gained respect for theirdisaster response, there is significantneed for greater support for civil disaster-management institutions, such as the Na-tional Disaster Management Authority.

“Throughout the region, we must rec-ognize that investments in disaster riskmanagement are an essential means tosustaining growth and poverty reduc-tion,” says Thomas.

ADB touts disaster prevention as key to fiscal progressSays investments in disaster risk management essential to sustaining growth and reducing poverty

KARACHI

ISMAIL DILAWAR

TRADE relations betweenRussia and Pakistan mayface a set back as Moscow isfeeling the heat of the longabsent direct sea, air and

banking links with Islamabad, somethingRussians believe are hindering mutualtrade. Russia sees “good prospects” for theinitiative as the traders and industrialistsin Pakistan urge the need for a PreferentialTrade Agreement (PTA) between the twocountries to promote bilateral trade ties.

“(The) unavailability of direct ship-ping-lines, airlines and banking channelare major obstacles impeding bilateraltrade,” said Andrey V. Demidov, RussianConsul General during his visit to theKarachi Chamber of Commerce and Indus-try (KCCI) on Wednesday.

At the Chamber, Demidov met KCCIPresident Muhammad Haroon Agar, Sen-ior Vice President KCCI Shamim Firpo,Vice President Nasir Mehmood, FormerPresident KCCI Majyd Aziz and membersof the Chamber’s managing committee.

The Russian consul general said goodprospects for Pak-Russia PTA existed.“Russian Mission can prepare feasibilitystudy on PTA as deliberations are requiredon certain legalities,” he added.

Demidov viewed that to execute transittrade from Gawader Port, adequate infra-structure, railways, highways and bridges

were essential.He recalled that in early ‘90s PIA oper-

ated to Moscow and the restoration of suchdirect air-connectivity was important. “Inpast, PIA also used to stopover to Moscowwhile going to UK, while Russian Airlinemay stopover Islamabad or Karachi whilegoing to UAE which can provide opportu-nity to visitors of both countries for inter-action,” observed the Russian consul.

Citing Pakistan Steel Mills (PSM) as agood example of past cooperation betweenthe two countries, he said similar coopera-tion could be extended in many areas, par-ticularly in energy as Russia was numberone in the energy sector.

About the postponed visit of PresidentVladimir Putin to Pakistan, Demidov saidupon his visit various MoUs and coopera-tion documents would be signed betweenthe two countries.

Seeing a huge demand for Pakistanitextiles and leather garments in Russia, hesaid Pakistan could also export potato, rice,vegetables and fruits to his country.

“Russia is manufacturing helicoptersand commercial jets which can be providedto Pakistan. Pakistani natural pharmaceu-tical products have immense demand inRussia,” he said.

Demidov said multilateral cooperationin several areas, between Pakistan, RussiaandCentral Asia Republics, was also work-able. Bilateral cooperation in educationwas continued and Pakistani studentscould also avail Russian scholarships pro-grammes, said he. During talks with Demi-dov, KCCI President Muhammad HaroonAgar urged Islamabad and Moscowto ex-pedite their arrangements leading to thesigning of PTA.

Agar noted the dire need of Pak-Russ-

ian inter-governmental arrangements todevelop direct shipping and air links as wellas establish banking channels to multiplybilateral trade.

He said during the last 64 years Pak-istan’s economic relations had largely beenAmerican and west oriented with aid beingits main focus instead of easing market ac-cess, transfer of technology and invest-ment. Recalling Pak-Russian cooperationin the past, the KCCI president emphasizedthat the two countries should replicatetheir past cooperation on the lines of PSMin areas like heavy machinery, engineering,automobiles, revamping railways, energyfrom coal, corporate farming, mining,health, education and others.

Agar said with the multilateral cooper-ation of Central Asian Republics, Russiantrade could be facilitated from Pakistaniports to other countries. On the occasion,Former KCCI President Majyd Aziz hopedthat Putin’s visit to Pakistan would opennew chapters of bilateral relations.

Aziz said to cater national transporta-tion requirement, particularly for cargomovement, Pakistan should also benefitfrom Russian automobiles particularly,trucks and heavy vehicles used in logistics.

A paradigm shift is required from tradeof commodities to machinery and equip-ment, he said adding that Russian in-vestors could invest in Special EconomicZones and construct their own enclaves asPresident of Pakistan had signed the Spe-cial Economic Zones Bill.

From Russia, with suggestions g Russia claims absence of direct links impede trade with Pakistan g Sees ‘good prospects’ for a PTA with

Pakistan g Demidov says Russian mission can prepare feasibility study

‘LNG import dealunworkable’

ISLAMABAD

ONLINE

Pakistan Economy Watch (PEW) onWednesday said that recent deal to im-port Liquefied Natural Gas (LNG) fromQatar is unfeasible. The import agree-ment signed recently with Qatar is notpractical as Pakistan lacks infrastructureto import LNG, it said.Government has been trying to importLNG since years during which billionswere spent on studies, hiring of experts,foreign tours and road shows disregard-ing the fact that Pakistani ports cannothost any LNG vessel, said Dr. MurtazaMughal, President PEW. Depth of waterat Port Qasim and Kemari is 39 feetwhile the average depth of a loaded LNGcarrier in the water is 45 to 48 feet.The lightest LNG ship scarcely availableis that of fifty thousand tones with 42feet draught that cannot serve the pur-pose. Dr. Murtaza Mughal said that be-fore planning to import LNG,government should have initiated dredg-ing (excavation activity to enable water-ways navigable) which will cost 40million dollar and take two years mini-mum. Moreover, there is no degasifica-tion facility available in Pakistan whichwill take 24-30 months to be in place ifwork on it is initiated today, said Dr.Murtaza Mughal. He added that countrywill also need a 50 km pipeline to con-nect degasification facility with SSGCmain pipeline which will also require twoyears’ time and 30 million dollar in costs.

NBP to putRailways on track

Agrees to provide Rs 6.1bn

loan to Pakistan RailwaysLAHORE: National Bank of Pakistan(NBP) will provide cash-strapped Pak-istan Railways a Rs6.10 billion-rupeeloan to revamp its depleted fleet, mediareports said on Wednesday.According to the sources, an agreementto this effect has been reached betweenthe National Bank and PRACS – a sub-sidiary of Pakistan Railways. Under theagreement, the NBP will provide thefunds in one-go but the loan amount willbe payable in the next five years carryinga mark-up of 10.45 percent per annum. During the first two years, Pakistan Rail-ways will only pay the mark-up after everysix months whereas in the next three yearsRailways will also be liable to paybackprinciple amount along with the mark-up.The loan will be used for repair and main-tenance of Railways engines. ONLINE

ECC may allow additional export of 0.2 mt sugar ISLAMABAD

ONLINE

The Economic Coordination Committee(ECC) of the Cabinet scheduled to meeton November 20, is expected to allowadditional export of 0.2 million tonssugar.

Last month, the apex economic de-cisions making body had also allowed0.2 million tons sugar export.

According to Pakistan Sugar MillsAssociation (PSMA), the permission forfurther export of 0.2 million tons sugarwill go a long way to improve the finan-cial positions of the mills and paymentsto sugarcane cultivators.

According to the agenda items avail-able with Online News agency, the ECCwill consider the summary of CommerceMinistry which has sought the export of

0.2 million tons sugar in addition to 0.2million tons allowed earlier.

The committee will also take up theministry of Industry’s summary inwhich they (ministry) sought the waverof sales tax at import stage on the im-port of Swede bus Pakistan.

Following a resolution passed bythe National Assembly, the EconomicCoordination Committee of the cabinetis also expected to give a go-ahead toswitch to a monthly oil pricing mecha-nism as the Ministry of Petroleum andNatural Resources will table the sum-mary before the committee for its ap-proval.

The controversial weekly price re-view mechanism was also suspended bythe government after giving an under-taking in the Supreme Court last month.

The government has also been seen

to repeatedly ignore the continuous rec-ommendations of the National Assem-bly Standing Committee on Petroleumand Natural Resources and the Oil andGas Regulatory Authority (OGRA) toswitch to the old oil pricing mechanism.

The Ministry of Finance and OGRAhad already opposed to the price reviewon a weekly basis when the summarywas first tabled before the ECC for ap-proval, but their concerns were not ad-dressed. OGRA was of the view that thecurrent price review was being exploitedby refineries, oil marketing companiesand hoarders.

Flag protection of National shippingline, report on implementation of cabi-net decisions and the review of economicindicators were also included in theagenda items of the upcoming meetingof Economic Coordination Committee.

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02

Thursday, 15 November, 2012

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERIsland TextileXD 538.57 565.49 565.49 565.49 26.92 100Indus DyeingXD 539.00 559.00 559.00 559.00 20.00 100Pak.Int.Cont. SD 162.61 170.74 169.90 170.74 8.13 14,500IGI Insurance 138.62 145.55 141.50 145.55 6.93 177,500Linde Pakistan 138.50 145.42 138.55 145.42 6.92 28,900

Major LosersBata (Pak) XD 1385.45 1320.00 1320.00 1320.00 -65.45 50Clover PakistanXD 78.45 77.50 75.61 75.70 -2.75 7,000MCB Bank Ltd.XD 186.10 186.99 183.61 183.94 -2.16 254,900National FoodsXD 292.33 292.45 287.00 290.35 -1.98 6,200Dadex Eternit 41.15 39.20 39.20 39.20 -1.95 1,000

Volume Leaders

Maple Leaf Cement 10.34 11.34 10.35 11.34 1.00 20,196,500D.G.K.CementXD 52.77 53.65 52.50 53.03 0.26 15,069,000Jah.Sidd. Co. 16.45 16.85 16.40 16.55 0.10 11,336,500JS Bank Ltd 6.24 6.35 5.75 5.94 -0.30 9,686,500Fauji Cement 6.52 6.70 6.49 6.57 0.05 8,023,500

Interbank RatesUS Dollar 95.9049UK Pound 152.3736Japanese Yen 1.1990Euro 122.1540

Dollar EastBUY SELL

US Dollar 96.30 96.80Euro 121.09 123.15Great Britain Pound 150.64 153.18Japanese Yen 1.1812 1.2010Canadian Dollar 94.52 96.61Hong Kong Dollar 12.19 12.42UAE Dirham 25.94 26.35Saudi Riyal 25.33 25.71Australian Dollar 98.40 101.51

Business

KARACHI: Pakistan Association of Photo Journalist (PAPJ)

organized a convention in Karachi The three day convention

brought many such journalists from different parts of the

world, but mainly from the SAARC countries. Japan

Foundation was a major sponsor of the event. A dinner

reception was arranged by Kalim Farooqui of Pakistan Japan

Cultural Association to honour the visiting delegates which

was also attended by the new Consul General of Japan in

Karachi, Akira Ouchi, also present on the Occasion.

PTCL connects remote

Balochistan through Vfone

Wireless Service

ISLAMABAD: As part of its vision to bringlatest Information and Communication Tech-nologies (ICT) to the remotest areas of thecountry, Pakistan Telecommunications Com-pany Limited (PTCL) has extended its Vfonewireless service to isolated Mekhtar, Bard andMurgha Kibzai areas of Balochistan. Part of Lo-ralai region of Balochistan, Mekhtar, Bard andMurgha Qibzai areas are one of the remotestareas of the country. PTCL aims to facilitatethe people of the region with the launch ofVfone service. PTCL Vfone has the country’slargest WLL coverage and is available withboth prepaid and postpaid options. Supportedby high-speed CDMA technology, Vfone also of-fers SMS and internet connectivity at afford-able rates.

UMT organises seminar

on Balochistan crisis

LAHORE: Brig (R) Imran Malik and Brig (R) Fa-rooq Hameed Khan were invited to share their in-sight on the Baluchistan crisis in a special seminararranged by the School of Social Sciences and Hu-manities, University of Management and Technol-ogy (UMT), Lahore.Brig (R) Imran Malikexplained the external dynamics of the conflict inBalochistan, describing the ‘Great Game’ at playbetween major powers of the world and the re-gion. He highlighted the interests of USA, Russia,China and India, the importance of the interna-tional trade corridors, and the part played by thestrategic location of Balochistan in this conflict ofinterests between the major powers.

HEC to award more than 10,000

need based scholarships

ISLAMABAD: In lieu with the policy of govern-ment of Pakistan, The Higher Education Commis-sion HEC has decided to award more than 10000scholarships to needy students from different partsof Pakistan under HEC needs-based scholarshipprogram during current financial year. Thesescholarships would be awarded to talented but fi-nancially constrained students especially thosefrom rural areas to ensure greater equity in enroll-ment at different public sector higher educationinstitutions HEIs throughout the country.

Participants of 12th

SMC visit PEMRA

ISLAMABAD: The participants of 12TH SeniorManagement Course (SMC) comprising of seniorGovt. officers from various Federal & ProvincialGovt. departments, autonomous and public sectororganizations visited PEMRA Headquarters todayhere at Islamabad. The visit was scheduled in linewith the requirement of the course whereby theparticipants are supposed to be sentient with dif-ferent working environments, management prac-tices and policies in vogue as to offer them adiversified exposure of practical working. This en-ables the senior civil servants to formulate and im-plement public policy for continuous improvementof governance at national and provincial level.

UIC stall draws attention

at International Expo.

LAHORE: An expo was arranged under Instituteof Cost and Management Accountants of Pakistanat Expo Centre Lahore, it continued for three daysin which Universal Insurance Company (UIC) ofBIBOJEE Group of Companies exhibited its serv-ices. Stall drawn lot of attention due to its signifi-cant background and services it has beenproviding. UIC is an experienced organization andproviding services since 1958. It has achieved re-markable excellence by introducing many dy-namic programs.

Mobilink awards Rs 5m and

1300 cc cars in ‘SMS Khazana 8’

LAHORE: Mobilink announced the winners ofthe five million rupee bumper prize and eight1300 CC cars for the Jazz SMS Khazana Offer,2012. The prize money and cars’ keys were handedover to the winners in a ceremony held in Mo-bilink House, Islamabad. This is the 8th version ofMobilink’s highly popular trivia-based contestthat offers Mobilink customers the opportunity towin high-valued prizes on a daily and weekly basisby answering simple questions over SMS.

CORPORATE CORNER

KARAcHI: Thai Airways organised “Thai Face of the Season”contest at Dolman Mall, Mr.Haroon Agar President KccI alongwith Mr. Polapat Neelabhamorn gM Pakistan Thai AirwaysPakistan inaugurate the event.

KARACHI

STAFF REPORT

PAKISTAN Steel Mills (PSM) hasopened another Letter of Credit(LC) to import 50,000 metrictonnes of coal from Australia. Ac-cording to a PSM spokesman, the

imported coal would be used as one of basic rawmaterials in the steel-manufacturing process atthe PSM.

Moreover, PSM was still seeking the pur-chase of iron ore, tenders for which were in theprocess, he said adding that soon the iron oreshipments would be finalized after completionof necessary formalities.

The spokesman quoted Chief Executive Of-ficer of PSM Major General Mohammad Javed(Retd) as expressing the hope that after theavailability of raw materials in continuity Pak-istan Steel’s production level would improve.

The CEO said after opening of the LC theraw material would take about more than 60days in being shipped to the Pakistan Steel.“This transitional period must be included inthe count down,” he said.

The PSM recently purchased two ships con-taining 110000MT of coal which arrived lastmonth after a long way from Australia and

Canada after the release of first tranche ofbailout package. Now this is the third LC for theimport of coal. According to Pakistan Steel’sproduction plan the production units are cur-rently working properly while after the induc-tion of raw materials the production would beincrease accordingly.

PSM to stopraking over coalsOrders import of 50,000 MT Australian coal

LAHORE

APP

Bearish trend prevailed in LahoreStock Exchange on Wednesday asit shed 8.87 points, following theLSE-25 index opened with 3932.53and closed at 3923.66 points.

The market’s overall situation,however, corresponded to an up-ward trend as it remained at 2.193million shares to close against pre-

vious turnover of 1.904 millionshares, showing an upward moveof 289,200 shares. While, out ofthe total 97 active scrips 21 movedup, 19 shed values and 57 reminedequal. Cherat Cement CompanyLimited, Maple Leaf Cement Fac-tory and Balochistan Glass Limitedwere Major Gainer of the day byrecording increase in their pershare value by Rs 2.06, Re 1.00 andRe 1.00 respectively.

Muslim Commercial Bank Lim-ited, Pakistan State Oil CompanyLimited and Adamjee InsuranceCompany lost their per share valueby Rs 2.00, Rs 1.35 and Rs 1.30 re-spectively.

The Volume Leader of the dayincluded Maple Leaf Cement Fac-tory with 698,000 shares, SilkBank Limited (Saudi) with 422,500shares, Lafarge Pakistan Cementwith 192,500 shares.

Demand fears pullcrude southwards

SINGAPORE

AgENcIES

Crude prices fell in Asia on growing fearsover the US and Greek economiesWednesday, while the International En-ergy Agency cut its demand forecasts andOPEC said stockpiles were “very high”.New York’s main contract, light sweetcrude for December delivery slid 16 cents to$85.22 a barrel and Brent North Seacrude for delivery in December shed 35cents to $107.91.Fears over the US fiscal cliff of tax hikesand spending cuts, which would tip theeconomy into recession, have dogged in-vestors since the re-election last week ofPresident Barack Obama.Adding to uncertainty was eurozone fi-nance ministers’ delay to a decision onreleasing the next batch of Greece’smuch-needed bailout cash.“Crude oil fell... over concerns aboutlower demand in a well-supplied marketand as the United States and Europegrappled with fragile economies,” PhillipFutures said in a report.“Oil prices also came under pressurefrom an International Energy Agency re-port that cut estimates for global oil de-mand in the last quarter of this year andfor growth in 2013.”The IEA — which represents oil-consum-ing countries — predicted Tuesday that global demandwill have increased by 670,000 barrelsper day (bpd) in 2012 to 89.6 millionbpd. This was 60,000 bpd less than pro-jected a month ago.For next year, the Paris-based grouptipped a rise to 90.4 million bpd — 100,000 barrels lessthan the previously stated — due to slug-gishness in the developed world.Also, Organisation of Petroleum Export-ing Countries (OPEC) Secretary-GeneralAbdullah El-Badri said Tuesday therewas ample supply and blamed specula-tors for high oil prices.“There is no shortage of oil anywhere inthe world, stocks are very high (and)OPEC has strong spare capacities,” El-Badri told delegates at the Oil & Moneyindustry event in London.“The market is very well supplied. Thereis no doubt about it, so I don’t under-stand why we have these high prices.Speculation is the problem.”

LSE sheds 8.87 points

BEars, Bulls play out a draw

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