ISLAMABAD

ONLINE

adViSOR to Prime Ministeron Petroleum & natural Re-sources dr. asim Hussainhas said Pakistan’s approach

towards meeting energy requirementsis of urgent nature and completion ofmega gas projects including TaPi & iPis top priority.

He expressed these views whilemeeting the twelve member Russiandelegation headed by deputy Ministerof Energy of the Russian FederationY.P. Sentyurin, who called on the ad-visor on Thursday at islamabad. Sec-retary Petroleum & natural ResourcesEjaz Chaudhry and senior officers ofthe Ministry were also present on theoccasion.

dr. asim Hussain said the in-prin-ciple decision of Russian Federationregarding cooperation in TaPi and iPprojects is highly appreciated.

He expressed confidence over bi-lateral cooperation between Pakistanand Russia and welcomed interestshown by Russian Federation in TaPiand iP projects. Secretary Petroleumbriefed the delegation on latest posi-tion of TaPi and iP pipeline projectsand emphasized on expanding the bi-lateral treaty framework of coopera-tion in oil and gas sector. Thedelegation was informedthat the Ministry hadextensively workedon Shale and TightGas policies thatwould be of in-terest to theRussian Govern-ment. it wasagreed betweenthe two sides thatdetails of the two-mega gas projectswould be sharedimmediately and fi-nancial modalitieswould remain nego-tiable. Representa-tives of Russianc o m p a n i e si n c l u d -

ing Gazprom EP and PJSC Stroy-transgaz also briefed the advisor tothe Prime Minister on possible expert-ise that could be provided for theTaPi & iP projects.

it may be recalled that the twelvemembers’ Russian delegation is visit-ing Pakistan in connection with sec-ond meeting of the Russian PakistaniJoint Working Group on Energy Co-operation that is being held in Pak-istan.

‘Gas shortfallmay touch 6bbcfd by 2020’ISLAMABAD: The natural gas short-fall is expected to reach six billioncubic feet per day (bcfd) by 2020which at present is around three bil-lion. Secretary Petroleum, MuhammadEjaz Chaudhry informed SenateStanding Committee on Petroleumand natural Resources Thursday thatthe ministry was making all-out effortsto deal with the looming gas shortage,but the country has limited resources.The meeting was further informedthat this is the shortage which forcedthe government to curtail supply to in-dustry and other sectors and added

the planned import of gas wouldhelp decrease about two mil-

lion bcfd of shortfall. He saidthe Ministry was adoptingmeasures to enhance localproduction to meet thegrowing needs and addedin spite of difficulties, it istying to deliver in a betterway. On the request of

dr. asim Hussain, theChairman postponed the

meeting till July 9 to havebriefing on Pakistan

State Oil. APP

Friday, 29 June, 2012

Page 02

Nein!

ALL OVER THE MILKY WAY

AGENCIES

The euro traded in a narrow range inasia on Thursday as investors lookedto a European Union summit startinglater in the day, amid shrinking hopesfor a breakthrough fix for the region'sfiscal woes. The common currencybought $1.2491 and 99.20 yen inTokyo trade, from $1.2467 and 99.38yen in new York late Wednesday. Thedollar was weaker at 79.44 yen from79.71 yen in US trade.

ASIAN MARKETS MIXED

asian markets were mixed onThursday with a positive lead fromWall Street offset by low expectationsof a breakthrough at a key EU sum-mit to resolve the spiralling eurozonedebt crisis. The euro was littlechanged as investors waited anx-iously to see if European Union lead-ers gathering for a two-day meetingstarting later would offer any majorsupport to the ailing single currency.Tokyo stocks were 0.91 percenthigher by noon, while Sydney edgedup 0.23 percent. But Hong Kong wasflat, Seoul was down 0.27 percent,and Shanghai slipped 0.41 percent.

OIL PRICES DROP

World oil prices dropped onThursday, mirroring the pattern

across financial markets, as tradersawaited the outcome of an EU sum-mit on the eurozone debt crisis.Brent north Sea crude for delivery inaugust fell 80 cents to $92.70 a bar-rel approaching midday in London.new York's main contract, lightsweet crude for august, lost 31 centsto $79.90 a barrel.EU leaders debate"a big leap forward" to strengthentheir union and save the euro at atwo-day summit starting Thursday,but divisions may scuttle efforts toshore up the single currency.

Eu STOCKS, EuRO SLIDE

European stock markets and theeuro slid on Thursday with traderswaiting to see if an EU summit willdeliver concrete steps to tackle the eu-rozone's spreading debt crisis. Lon-don's benchmark FTSE 100 indexdropped 1.0 percent to 5,468.22points, Frankfurt's daX 30 shed 1.80percent to 6,116.43 points and in Paristhe CaC 40 tumbled 1.20 percent to3,026.44. Madrid's iBEX 35 slipped0.70 percent to 6,619.00 points. inforeign exchange deals, the euro re-treated to $1.2431 from $1.2467 lateon Thursday in new York. "Europeanpoliticians have done a fantastic job oflowering expectations for the EUsummit that begins today, whichmeans that even the smallest 'break-through' may cause a short-term relief

rally" across financial markets, saidKathleen Brooks, research director atForex.com trading group. EU leadersdebate a so-called "a big leap forward"for increased integration and save theeuro at a two-day summit in Brussels,but splits might scuttle efforts to ringfence the single currency. EuropeanUnion heads of state and governmentgather from 3:00pm.

ALL EYES ON TENSE SuMMIT

EU leaders debate "a big leapforward" to strengthen their unionand save the euro at a two-day sum-mit starting Thursday, but divisionsmay scuttle efforts to shore up thesingle currency. European Unionheads of state and governmentgather from 3:00 pm (1300 GMT)as the debt crisis, now in its thirdyear, widens to Cyprus and Spainafter contaminating Greece, Portu-gal and ireland. and with italy, thethird largest eurozone economyitaly too under threat, the EU isunder pressure from world leadersto prevent a collapse of the singlecurrency that would have unfath-omable global repercussions. Eu-rope's leaders are expected to agreea growth pact to revive the conti-nent's flagging economies and pro-pel the 27-nation bloc towardsgreater union, the first step being abanking union.

Urea salesto hit record

KARACHI

STAFF REPORT

The sales of urea have broken all records andby the end of June it may reach close to 900ktons, said the market observers. “This is evi-dent by the fact that with few days remainingin June the urea sales have already reached820k-830k tons, said Farhan Mahmood ofTopline Research. Last time, he said, such ahuge monthly sales was witnessed in decem-ber 2009 when 912k tons of urea sold in asingle month. But december is usually a peakseason for urea. Such a huge recovery in Junesales is due to pre-buying amid expected in-crease in urea prices if gas-cess is imposedand recovery in overall demand after lowerthan average sales in first five months. Out of900k tons likely sales in June, sales of localbranded urea would be around 95 percentmainly led by record sales of FFC and Engro.So far in June, imported urea available withnFML is estimated to be around 130-140ktons which also include portion of 100k tonstender floated few weeks back. Further localmanufacturers are estimated to hold around400k tons compared to 800k tons at the be-ginning of June 2012.

SECP seeks BahriaTown accounts

ISLAMABAD

AMER SIAL

The corporate sector regulator, Securitiesand Exchange Commission of Pakistan(SECP) has sought detailed accounts fromthe Bahria Town for examination after con-cerns were raised about the non transparentoperations of the company. an officialsource said that the commission plans toscrutinize accounts of all the real estatecompanies and process will be started withthe Bahria Town, largest housing construc-tion concern in the country. He said an ex-amination letter seeking details of accountsis already sent to the Bahria Town. it wasnot furnishing its annual accounts to theregulator. Other than the listed companies,SECP is extending its monitoring and en-forcement to the non listed companies hav-ing paid up capital of more than Rs 7.5million. We want the non listed companiesto also disclose more to enhance trans-parency in the corporate sector, he added.

Industry in shamblesKARACHI

STAFF REPORT

driving on the city roads these days, onewould not miss an array of stylish exoticsedans and luxury cars of differentmakes and models in large numbersevoking one’s mind how these vehicleshave so suddenly flocked into our mar-ket. This has happened because schemesfor overseas Pakistanis are turned into abusiness opportunity whenever it isworthwhile, for that reason the crucialcomponents of the policy that govern thescheme are always kept subject tochange, any time. it is the “age limit” andthe “depreciation” that essentially makesand unmakes the opportunity; and onewould easily check out that when thesewere at higher level were indeed the peri-ods of opportunity.in present times these are at the highestever level so those in the field are makingtheir best of the opportunity. Keeping thepolicy subject to change and maintainingan uncertainty with regard to possiblechange any time enables the beneficiar-ies to control the market and bring theiropportunity close to perfection.Pakistan imported over 42000 used ve-hicles in the first 11 months of fiscal year2011-12. These vehicles reduced the de-mand of locally manufactured cars, cre-ated environmental hazards and resultedin thousands of lost job opportunities. ithas stopped all investment plans of thelocal car manufacturers.

From Russia(and ADB) with love(and megawatts)

ISLAMABAD

STAFF REPORT

Russia and asian development Bank (adB) haveshown interest to provide financial and technicalassistance to Pakistan for importing electricity andconstructing hydropower projects. a six-memberRussian delegation led by deputy Minister of En-ergy Y.P Sentyurin and a delegation of adB,headed by director General, Central West asia de-partment Klaus Gerhaeusser, separately called onMinister for Water and Power Chaudhry ahmedMukhtar. Russia delegation expressed their inter-est to invest $ 500 million in the CaSa-1000 proj-ect for establishment of power transmissionsystem from Kyrgyz Republic and Tajikistan toafghanistan and Pakistan. Both sides also ex-pressed interest in modernization and rehabilita-tion of Muzafargarh and Guddu thermal powerplants and conversion of them to cheaper fuel likecoal. The minister welcomed the interest by Russiafor cooperation in energy sector and offered themmodernization of existing hydroelectric plants,participation for the construction of 500 KV trans-mission line for import of 1000 MW from iran toPakistan and other projects like Tarbela 4th Exten-sion, coal, renewable energy, and transmission lineprojects. The Russian delegation also showed theirinterest for mutually beneficial cooperation in thepower energy sector and discussed various projectsfor investment. Pakistan and Russia agreed to signa memorandum of understanding for cooperationin the energy sector and draft will be preparedfrom both sides in this regard for consideration.

We need gas!

NEW DELHI

AGENCIES

Indian Prime Minister Man-mohan Singh has urged financeofficials to revive the econ-omy's "animal spirit" and re-

verse a climate of pessimism at a timeof sharply decelerating growth.

a day after taking over the financeministry portfolio, Singh called in topministry officials late Wednesday fora pep talk that focused on findingmeasures to boost flagging investorsentiment.

"We need to work to get the econ-omy going again and restart the indiagrowth story," Singh told the officials,urging them to "reverse the climate ofpessimism ... (and) revive the animalspirit in the country's economy."

india's once-booming economy issuffering from slowing industrialgrowth, troublesome fiscal and cur-rent account deficits, stubbornly high

inflation and a stalled reform agenda.The economy grew just 5.3 percent

in January to March, its slowest quar-terly expansion in nine years.

"On the external front, i am con-cerned about the way the exchangerate is going. investor sentiment isdown and capital flows are drying up,"he said.

The indian rupee has lost morethan a quarter of its value in the past12 months and is currently asia'sworst-performing currency.

Singh took over the finance port-folio on Tuesday following the minis-terial resignation of PranabMukherjee, who stepped down to con-tend india's presidential election inJuly.

according to an official in theprime minister's office, Singh intendsto retain control of the ministry for atleast several months and will only ap-point a permanent successor "when hethinks the time is right."

Unleashthe beastinside you!

Global markets go nuts amidEU summit apprehension

PRO 29-06-2012_Layout 1 6/29/2012 3:34 AM Page 1

JAR IN THE RAG

02Friday, 29 June, 2012

HEC’s NCEAC workshop

ISLAMABAD: The Quality assurance agency(Qaa), Higher Education Commission (HEC) incollaboration with national Computing Educa-tion accreditation Council (nCEaC) organizeda three-day training workshop for the ProgramEvaluators of nCEaC held here at HEC islam-abad. Prof. dr. Shahrin Bin Sahib director, di-vision of academics development ManagementMinistry of Higher Education, Malaysia was theresource person for the workshop. The inauguralsession of the workshop was chaired by Prof dr.aftab ahmed, Chairman nCEaC.

Emirates to fly A380 twice a day

KARACHI: Emirates, one of the world’sfastest-growing international airlines, is to fur-ther boost its fast-growing US network with thestart of a second daily a380 service to newYork JFK. From 1st January 2013, EK203 from

dubai to JFK, and its return sector EK204, willbecome a380 flights, offering an increased ca-pacity of almost 1,000 additional seats in bothdirections every week. The service is currentlyoperated by a Boeing 777-300ER.

RAK FTZ concludes road show

LAHoRe: Following the success of theKarachi road show, Ras al Khaimah Free TradeZone (RaK FTZ) concluded a road show in La-hore on the 27th of June at the Pearl Continen-tal Hotel. RaK FTZ is visiting Pakistan with anagenda to attract Pakistani businessmen to Rasal Khaimah. Pakistan is the third biggest mar-ket for RaK FTZ, and the free zone is lookingto improve and succeed even more by demon-strating complete dedication to the region.

BOP, ‘Rainmaker of the Year’

LAHoRe: The Bank of Punjab has achievedanother landmark by handling remittances ofPKR 49.9 billion for the year 2011 throughXpress Money UaE. To commend our per-formance the company arranged a ceremonyin abu dhabi and presented BOP with theRainMaKER OF THE YEaR aWaRd. Mr.Mustafa Hamdani Group Head PaymentServices received the award on behalf of theBank of Punjab.

Major Gainers

COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVER

Rafhan Maize Prod. 3050.00 3148.80 3100.00 3144.34 94.34 11Siemens Pakistan 727.95 764.34 740.00 763.86 35.91 51Bata (Pak) Limited 681.15 715.15 700.00 701.07 19.92 309Nestle Pakistan Ltd. 4068.92 4100.00 4036.00 4084.24 15.32 43Colgate Palmolive 965.50 980.00 960.00 979.99 14.49 917

Major Losers

UniLever Pak 7298.25 7284.00 7000.00 7018.19 -280.06 53Philip Morris Pak. 185.01 189.00 175.76 175.76 -9.25 47,093Indus Motor Com 245.28 246.00 240.00 241.69 -3.59 17,476Clariant Pak 178.00 175.02 175.00 175.00 -3.00 543Jubilee Life Ins. 69.98 71.49 67.01 67.01 -2.97 2,000

Volume Leaders

Bankislami Pakistan 9.35 10.35 9.60 10.30 0.95 5,677,512Soneri Bank Ltd 7.56 7.75 7.25 7.49 -0.07 5,158,141Summit Bank Ltd 3.22 3.30 3.12 3.20 -0.02 5,075,383P.T.C.L.A 13.98 14.31 13.85 13.92 -0.06 3,658,115D.G.K.Cement 39.93 40.60 39.90 40.11 0.18 3,524,557

Interbank RatesUS dollar 94.5826UK Pound 147.0003Japanese Yen 1.1921Euro 117.5473

Dollar EastBUY SELL

US Dollar 95.30 96.50Euro 117.50 119.02Great Britain Pound 146.65 148.50Japanese Yen 1.1881 1.2030Canadian Dollar 91.20 92.86Hong Kong Dollar 12.11 12.30UAE Dirham 25.80 26.10Saudi Riyal 25.30 25.56Australian Dollar 94.39 97.04

Business

KARACHI

STAFF REPORT

THE bulls kept dominating Karachistocks market on Thursday withbenchmark, KSE 100-share indexgained 6.30 points. The day saw the

index closing up by 0.05 percent at 13, 805.42points against 13, 799.12 points of Wednesday.The Pakistan stocks closed higher on institu-tional interest amid concerns for rising politicaluncertainty pending nRO implementationcase. Viewed by ahsan Mehanti, director at arifHabib investments Limited.

On Thursday, the trading volumes at theready-counter were recorded lower at 63.362million shares against 94.364 million shares ofthe previous day. The trading value decreasedto Rs 2.304 billion compared to Rs 2.815 billionof the previous session. The intraday high andlow, respectively, stood at 13, 880.58 and 13,785.29 points. He added that the hopes for im-provement in Pak-US ties after positive talksbetween army officials supported the senti-ments. The market capitalization increased toRs 3.520 trillion from Rs 3.518 trillion a day

earlier. Of the total 339 traded scrips, 127gained, 113 lost and 99 finished as unchanged.The free-float KSE-30 index decreased 1.56points to close at 11, 932.21 points against theprevious 11, 933.77 points.

Bankislami Pakistan was the day’s volumeleader counting its traded shares at 5.677 mil-lion with the opening and closing rates standingat Rs 9.35 and Rs 10.30, followed by SoneriBank Limited, Summit Bank Limited, PakistanTelecommunication Company Limited (PTCLa)and d.G.K Cement with turnover of 5.158 mil-lion, 5.075 million, 3.658 million and 3.524 mil-lion shares respectively. according to analystthe uncertainty in global stocks and commodi-ties on prevailing euro-zone debt crises keptforeign interest on lower end despite strongearnings outlook in blue chip stocks.

On the future market, the turnover plungedby over 6 million shares to 12.411 millionagainst 18.038 million shares of Thursday.

The Rafhan Maize Prod and Siemens Pak-istan, up Rs 94.34 and Rs 35.91, led highestprice gainers while, Unilever Pakistan andPhilip Morris Pakistan, down Rs 280.06 and Rs9.25respectively, led the losers.

BERLIN

AGENCIES

Germany is opposed to the eurozone's bailout fundshelping banks directly as long as financial sector su-pervision is carried out at national level, a govern-ment source said on Thursday. "The current system,where member states are responsible for their banks,can function only if the responsibility for recapital-ization also lies with the member states," the sourcesaid. "We can't start by having joint responsibility forrecapitalisation. We mustn't start that way roundand say: 'now we can recapitalise banks directly'," thesource said. While some member states argue thatbanks themselves should be able to seek aid directlyfrom the European Financial Stability Facility(EFSF) or its successor the European Stability Mech-anism (ESM), Germany insists that applying for helpis strictly a matter for governments.

"Otherwise, the EFSF and ESM would hold astake, say, in a Spanish bank but would have noright to intervene, which would continue to be heldat a purely national level," the source argued. "Li-ability and responsibility must be at situated at thesame level," the source said. With a view to the EUsummit beginning in Brussels later on Thursday,the source said the bloc already had sufficientweapons at its disposal to fight the crisis and therewas no need to draw up new additional measures.asked whether any decisions would be taken on

Greece, the source noted that the so-called "troika"of auditors from the European Union, the Euro-pean Central Bank and the international MonetaryFund would only be travelling to Greece next week.Thus, leaders would have to await their report be-fore any decisions could be taken about the state ofthe debt-wracked country. Turning to soaring bor-rowing costs facing Spain and italy, the sourcewarned against "exaggerated scare-mongering."

On Wednesday, Spanish Prime Minister Mari-ano Rajoy warned that his country cannot finance it-self for long at the high rates it now pays on themarkets. if Spain, the eurozone's fourth-biggesteconomy, is shut out of the markets it could lead to afull-blown bailout for the country with unfathomableconsequences for the 17-nation eurozone.

Bears stampede as bullstry and hug everythingg KSE-100 index gains a miserly 6 points as NROimplementation case hogs the spotlight

UK’s Osborne to makestatement on Barclays

LONDON

AGENCIES

British finance minister George Osborne will make astatement on Thursday about a regulatory probe thatfound Barclays bank had manipulated interbank lendingrates over several years. a spokeswoman for the Houseof Commons said Osborne would address parliamentshortly after 1100 GMT on a Financial Services author-ity investigation into the how Britain's key interbanklending rate, Libor, was fixed. Barclays will pay 290 mil-lion pounds ($453 million) to U.S. and British authori-ties to settle allegations that it manipulated interestrates. Libor underlies everything from derivativestrades to U.S. consumer credit card rates to loans as farafield as those financing Turkish phone networks.

‘Strings attachedto Spain bank aid’

FRANKFURT

AGENCIES

a bailout of Spain's banks comes with strings attachedand Madrid's efforts to cut its deficit must be monitoredclosely, a top European Central Bank official said onThursday. "Spain will receive the money from thebailout fund in tranches, with payment depending onwhether Spain meets the conditions," the ECB's chiefeconomist Peter Praet told the Financial Times deutsch-land. "Spain has no classical aid programme. But giventhe interconnectedness between the situation in thebanking sector and state finances, we must also keep aneye on the development in the Spanish state budget,"Praet said. Spain insists that a eurozone loan of up to100 billion euros ($125 billion) agreed in mid-June im-poses conditions only on the banks, with no new stepsrequired on austerity or broader economic reforms.

Sony selling chemicalunit for $730 million

TOKYO

AGENCIES

Sony said Thursday it would sell its chemical productsdivision for about $730 million as part of a giant over-haul of the struggling Japanese consumer electronicsgiant. Sony previously said the development Bank ofJapan was buying the business, which makes films usedin liquid-crystal display panels and other products.

Oil higher inAsia on US data

SINGAPORE

AGENCIES

Oil prices rose in asian tradeThursday, drawing support fromlargely positive US data and a strikeby oil workers in norway, analystssaid. new York's main contract,light sweet crude for august deliv-ery, was 30 cents higher at $80.51 abarrel and Brent north Sea crudefor august delivery was one cent upat $93.51. data released Wednes-day by the US national associationof Realtors showed pending homesales in the United States returnedto March's two-year high in May,rebounding from an april plunge.Crude prices are heavily influencedby US data as the american econ-omy is the world's largest oil con-sumer. The industry group said itsindex of pending home sales, orcontracts signed but not closed,rose 5.9 percent to 101.1 in May. anindex level of 100 generally indi-cates a healthy pace.

Nokia CEOadmits failure

HELSINKI

AGENCIES

nokia chief executive StephenElop admitted on Thursday thathis company had failed to foreseerapid changes in the mobile phoneindustry and this was partly be-hind the firm's problems. "We hadmoments in the past year and ahalf when we could have donesome things differently had weknown that the industry waschanging so rapidly," Elop toldFinnish national daily aamulehti.

‘JPMorgan lossescould hit $9b’

NEW YORK

AGENCIES

The losses from JPMorgan'sbotched derivatives trade mayreach $9 billion, nearly five timesthe amount announced in May, thenew York Times reported Thurs-day. The Times quoted an un-named source as saying a reportgenerated in april showed that in aworst-case scenario the losses fromthe trade could reach $8-9 billion,but said some regulators expectsomething closer to $6-7 billion.

KARAChI: Picture shows President and CEOSilkbank Azmat Tarin (left) signing the contractwith Director Symmetry Group, Syed Adil Ahmed(right). Head of Cards, Salman Hasan, Head of ITO,Javed Y Edhi and CTO of Creative Jin, MohammadSajid were also present at the ceremony,

KARAChI: A Group Photo with the Chief GuestCommissioner Karachi Roshan Ali Shaikh, ConsulGeneral Republic of Korea In-Ki Lee, Kaukab IqbalChairman CAP, Chang il Kim Chief ExecutiveDaewoo Pakistan, S.B Hassan, On the Occasion ofinauguration ceremony Daewoo Express BusService from Karachi to up country.

Nein!g Germany says ‘no’ to bailout funds helping banks directly

CORPORATE CORNER

PRO 29-06-2012_Layout 1 6/29/2012 3:34 AM Page 2