Business Recorder
The News
Daily Times
Dawn News
Monday, February 28, 2011
Increase in LPG price feared
KARACHI, Feb 28: LPG price is likely to be increased by Rs3.50 per kg in the country owing to increase in
the Saudi Aramco Contact Price of liquefied petroleum gas by $35 to $848 per ton in the international
market due to tension in the Middle East.
According to chairman, Pakistan LPG Distributors Association, Abdul Hadi Khan, the local price of LPG is
likely to be increased by Rs3,010 per ton due to this rise
SSGC posts Rs2.1bn profit for 6 months
KARACHI, Feb 28: The Sui Southern Gas Company (SSGC) on Monday announced net profit of Rs2,113
million for the half year ended December 31, 2010, reflecting an increase of Rs1,894 million compared to
Rs219 million for the six months last year.
The earning per share (EPS) improved by Rs2.26 to Rs2.52.
Despite increase in the number of gas producing fields the supply of gas decreased by 6.4 per cent to 202.7
bcf. However, despite the successive drop in gas supply to its major clients the company claimed success in
maintaining steady supplies to its customers base and the gas quota was allocated to the power sector,
industries and CNG stations in the best national interests.
Rise in global commodity rates, oil push KSE 66 points up
KARACHI: The Karachi stock market regained strength on the first trading day of the week Monday, after
witnessing heavy battering last week, as investors went for buying activity due to rise in commodity rates in
the international markets on unrest in Middle East and Libya, and crude oil crossing $100 per barrel mark.
The Karachi Stock Exchange (KSE) 100-share index gained 65.71 or 0.59 percent to close at 11,289.23
points as compared to 11,223.52 points of the previous trading week. The KSE 30-share index also gained
183.85 points to close at 10,940.68 points as against 10,756.83 points
HSBC profits more than double to $13.16bn
LONDON: Asia-focused banking giant HSBC said Monday that its net profit more than doubled to $13.16
billion (9.56 billion euros) last year as bad debts plunged to the lowest level since 2006.
HSBC said in a results statement that pre-tax profits soared 170 percent to $19 billion in 2010, while loan
impairments and other credit risk provisions dived 47 percent to $14.04 billion. Revenues rose 3.1 percent
to $68.3 billion. “Underlying financial performance continued to improve in 2010,” HSBC chief executive
Stuart Gulliver said in the results statement.
Asian stocks down, oil prices up on Mideast woes
HONG KONG: Asian investors resumed their share sell-off on Monday as fears over unrest in the Arab
world sent oil prices back up, while China's decision to lower its growth target also weighed on sentiment.
Tokyo slipped 0.62 percent by the break, Hong Kong fell 0.22 percent in early trade and Sydney edged 0.25
percent down while Seoul dropped 1.12 percent. Shanghai was 0.23 percent off. Taipei was closed for a
public holiday.
Markets on Friday took a breather to mostly post gains after a tough week that saw heavy selling as oil
prices soared on the back of violence in the Arab world, which stoked supply concerns. However, the losses
resumed on Monday as crude rose again -- despite the OPEC oil cartel and Saudi Arabia saying they would
be able to meet any shortfall -- as the Arab world continued to be rocked by protests.
Oil mixed as Saudi commits to supplies
SINGAPORE: Crude prices were mixed in Asian trade Tuesday as oil kingpin Saudi Arabia's pledge to
ensure sufficient supplies partially eased investor worries, analysts said.
New York's benchmark West Texas Intermediate contract for April delivery fell five cents to $96.92 and
Brent North Sea crude for April delivery was up 21 cents to $112.01. Fears about supply disruption sent
Brent soaring close to $120 last week.
Saudi Arabia, OPEC's largest producer, said on Monday it was committed to the stability of the oil market
after Libya's crude production dropped as the country is hit by unrest. The government, in a statement
carried by the state-run SPA news agency, said the cabinet met and discussed the anti-regime protests
shaking Libya "and their repercussion on oil production in that country."
Govt hikes petrol price by Rs7.23/ltr
ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) has raised the prices of petroleum products by
9.9 percent, to be applicable from Monday midnight (March 1, 2011), Geo News reported
According to OGRA spokesman Jawad Nasim, petrol price has been hiked by Rs7.23 per litre to Rs80.19;
High Speed Diesel by Rs7.76 to Rs86.09 per litre; Light Speed Deisel made expensive by Rs.6.60; HOBC
Rs8.58 to Rs95.25; and Kerosene Oil Rs7 to Rs77.95 per litre.
The government had kept the price of petroleum products unchanged for the past two months as a result of
pressure from all the mainstream political parties.
Importance of Islamic Banking system highlighted
PESHAWAR (March 01, 2011): Speakers of a seminar said that Islamic Banking system is fully interest
free and discouraging all forms of interest related dealings. They observed that there was mere quest for
Islamic Banking System in the society, whereas the rest of fields were inconceivable in this regard. The
seminar was held under auspices of Sarhad University of Science and Technology, at Peshawar campus.
Efforts on for speedy disposal of complaint: BMP:
SIALKOT (March 01, 2011): Banking Mohtasib of Pakistan (BMP) Masrur-ur-Rehman on Monday evening
has said that there was a great need of creating awareness among the masses about this institution. People
were totally unaware about the utility and benefits of the office Banking Mohtasib functioning in the
country, he said.
Barclays sub-branch opens at Diplomatic Enclave, Islamabad
ISLAMABAD (March 01, 2011): Adam Thomson, British High Commissioner, inaugurated a sub-branch of
Barclays Bank in the Diplomatic Enclave, Islamabad. This sub-branch will support Barclays in serving the
Diplomatic community and Development Organisations (DOs) better by being nearer to them.
The British High Commissioner was joined by Shazad Dada, CEO Barclays Bank Pakistan and over 75
guests from Private and Public sectors, Development Organisations and Foreign Missions.
UBL to initiate Employees Benefit Scheme for its officers
KARACHI: United Bank Ltd (UBL) will set up the Employees Benefit Scheme to reward, motivate and
retain high performing executive and officers by way of bonus in the form of issued shares of UBL (bonus
shares).
According to a communiqué sent to KSE on Monday, UBL said it has signed the trust deed in respect of
UBL Employee Motivation and Retention Trust 2010 on 25th of February 2011.
The bonus shares will be transferred to the Selected Officers over a span of four years in equal proportion
provided they remain in the employment of UBL.
For the purpose, a trust will be settled by UBL (Trust). UBL will advance, for the benefit of the selected
officers, up to a sum of Rs230 million to the Trust.
The Trust will acquire bank's share from open market and keep them in trust to be distributed to the selected
officers. The Trust will be managed by the Board of Trustees in which UBL will have no involvement in the
functioning of the Trust. The Trustees will be independent in running the affairs and the management of the
Trust.
Sunday, February 27, 2011
Circular debt deepens crisis: PSO yet to receive Rs30bn from govt
KARACHI, Feb 26: The Pakistan State Oil (PSO) did not get Rs30 billion this week despite firm assurances
by the finance ministry in its meeting with the state-run oil marketing company and relevant ministries on
Feb 21.
Sources in the oil industry said that the finance ministry after getting prime minister’s approval released
Rs30 billion to the ministry of water and power on Saturday for making payment to the PSO, but a PSO
spokesperson said that the company did not receive payment on Saturday and the matter is with the Water
and Power Ministry which is likely to resolve the issue by Feb 28. He said the PSO had earlier deferred
import of various POL products — furnace oil and jet fuel — for March-April 2011 period in view of its
critical financial situation. It awarded the tender on Friday night to avoid any product shortage.
The PSO spokesperson said major consumers of POL products, such as Wapda, Hubco, Kapco, PIA, KESC,
OGDC, owe PSO a cumulative sum of Rs161 billion as on Feb 24 as compared to Rs158.4 billion last week
which also included price differential claims.
The PSO, has, however, to make payment of almost Rs91 billion to various refineries, including Parco,
PRL, NRL, ARL, Byco as compared to Rs85 billion last week.
PSO also needs to clear LC payments to the Kuwait Petroleum Company (KPC) and the International Fuel
Oil Suppliers. As on Feb 24, receivables from Wapda, Hubco, Kapco, PIA, OGDC and KESC stood at Rs49
billion, Rs69.3 billion, Rs28.3 billion, Rs1.17 billion, Rs310 million and Rs1.52 billion, respectively.
PSO has to pay Rs31.5 billion to Parco, Rs11.5 billion to PRL, Rs9.3 billion to NRL, Rs33.5 billion to ARL
and Rs4.7 billion to Byco.
Plunging FDI poses serious threat:
KARACHI, Feb 26: Drying up of foreign inflows could be a threat to the country`s foreign exchange
reserves and current account balance as both foreign direct investment and portfolio investment nosedived
during the first seven months of this fiscal year.
Analysts and importers said the foreign investment may shrink further amid political turmoil and depressed
economic environment.
The State Bank of Pakistan data showed that the country witnessed steep fall in foreign investment during
the July-January period below $1 billion compared to $5.4 billion in fiscal year 2008.“The country might
not see any improvement in FDI during the coming months as economy offers no attraction while
uncertainty has strong presence on political and economic horizons,” said Mohammad Imran, a research
analyst on investment.
The new wave of panic like situation on the stock market flushed out foreign investment in the recent past,
but still it was positive.
The SBP data showed that up to February 25, 2011, the cumulative foreign inflows were $768 million,
outflows $571 million and finally $179 million still there as portfolio investment.
Pakistan to get $2bn worth of oil from Kuwait
ISLAMABAD: Kuwait on Saturday has agreed to provide $2bn worth of oil on deferred payment to
Pakistan.
The agreement between the two countries is expected to be signed in the next ten days.
Pakistan to get $2bn worth of oil from Kuwait
ISLAMABAD: Kuwait on Saturday has agreed to provide $2bn worth of oil on deferred payment to
Pakistan.
The agreement between the two countries is expected to be signed in the next ten days.
Plunging FDI poses serious threat:
KARACHI, Feb 26: Drying up of foreign inflows could be a threat to the country`s foreign exchange
reserves and current account balance as both foreign direct investment and portfolio investment nosedived
during the first seven months of this fiscal year.
Analysts and importers said the foreign investment may shrink further amid political turmoil and depressed
economic environment.
The State Bank of Pakistan data showed that the country witnessed steep fall in foreign investment during
the July-January period below $1 billion compared to $5.4 billion in fiscal year 2008.“The country might
not see any improvement in FDI during the coming months as economy offers no attraction while
uncertainty has strong presence on political and economic horizons,” said Mohammad Imran, a research
analyst on investment.
The new wave of panic like situation on the stock market flushed out foreign investment in the recent past,
but still it was positive.
The SBP data showed that up to February 25, 2011, the cumulative foreign inflows were $768 million,
outflows $571 million and finally $179 million still there as portfolio investment.
Mideast unrest highlights Asia's oil dependence
BANGKOK: The tremors from political upheaval in the Middle East are rippling through energy-thirsty
Asia, which has long struggled to kick its addiction to oil from the volatile region.
Every day millions of barrels of oil pass through the Indian Ocean from the Middle East to Asia, the world's
busiest route for supertankers, providing energy to fuel the region's rapid economic growth.
It's an intercontinental voyage that highlights the ever-increasing interdependence of the world economies
and explains why the fallout from unrest in the Middle East is having an impact thousands of miles
(kilometres) away.
Oil prices have skyrocketed on world markets on fears that uprisings in countries such as Egypt and Libya
could spread to major oil producers including Saudi Arabia and Algeria.
The effects are already being felt by motorists in Asia, which relies on the Middle East for the vast majority
of its oil imports.
Resource-poor Japan for example buys 90 percent of its crude from the Middle East, while Singapore gets
about 85 percent of its needs from the region and South Korea about 82 percent. But it is the developing
countries that might be the hardest hit by the price spike.
Pakistan foreign debt up by $12 bn
KARACHI: By courtesy of the present Government of the country, on one hand the rupee dropped by
Rs22.50 against dollar while on the other the already frail economy of Pakistan has been further burdened
by an additional international debt of 12 billion dollars, Geo News reported.
According to economic experts, the weak economy of the country is facing increasing burden of foreign
debt which has soared to 58 billion dollars from 46 billion.
The present regime that came to power with the slogan of “Roti, Kapra aur Makan” (food, clothing and
shelter) has, to the total disappointment of the people, only put them under increased burden of foreign debt.
Now the average debt per Pakistani stands at Rs29,000 which was only Rs6,000 before the present
government’s take over three years ago.
Low level of revenue collection, losses in state owned enterprises and worst law and order situation are sited
by experts as the main reasons behind the increasing foreign debt.
UAE central bank acts to curb personal loans, fees
ABU DHABI (February 28, 2011): The United Arab Emirates central bank has introduced new rules to limit
loans to individuals and bank service charges in the Gulf Arab OPEC member, it said in a statement on
Sunday. The UAE monetary authority said earlier this month that it would come up with new regulations to
prevent banks in the world's third largest oil exporter from charging excessive fees.
The central bank has capped personal loans at 20 times the salary or the monthly income of a borrower with
a repayment period set at 48 months, the statement said.
Details about previous limits and bank charges were not provided.
The global credit crunch exposed borrowing excesses in the second largest Arab economy, where
expatriates and nationals alike enjoyed lavish lifestyles helped by easy credit during the oil-fuelled boom
years.
When Dubai's property bubble burst UAE banks were left with heavy exposure to the emirate's indebted
state-owned firms, dragging down the oil-reliant UAE economy.
Bankers said the new rules represented only broad guidelines and each bank would use its own discretion in
lending as well as for service charges.
New Islamic insurer to debut on Abu Dhabi market by April
ABU DHABI (February 28, 2011): A new Islamic insurer, backed by top Abu Dhabi entities, will be listed
on the UAE capital's bourse by March or April, a senior official at one of its backers said on Sunday.
Wataniya Takaful plans to raise 82.5 million UAE dirhams ($22.47 million), or 55 percent of its capital,
through an initial public offering. It will have capital of 150 million dirhams to provide Islamic insurance.
"The Wataniya IPO could be in March or April latest," Aref al Khouri, managing director of the Islamic
banking division of National Bank of Abu Dhabi said at an Islamic forum in Abu Dhabi. The venture is
backed by National Bank of Abu Dhabi and Abu Dhabi National Insurance Co. - each with a 35 percent
stake - while Abu Dhabi National Energy Co. and Aldar Properties will hold 15 percent each in the
founder's share.
"There is a huge demand for sharia-compliant insurance products with very little available in the market,"
Khouri told Reuters later. "We see good potential."
The UAE with a population of around 8 million has 59 insurance companies and seven takaful providers.
Takaful works like mutual insurance, but there is a clear segregation of the assets owned by members and
those owned by the insurer. Islamic insurers keep away from investments in risky assets and prefer fixed
income products for parking their funds.
Gatehouse plans $97 million sukuk
ABU DHABI (February 28, 2011): Gatehouse Bank, a London-based sharia compliant investment bank,
plans to bring a 60 million pound ($96.77 million) Islamic bond to market by the end of the first quarter, its
chhief executive said on Sunday Richard Thomas, speaking on the sidelines of an Islamic forum in the
United Arab Emirates' capital, said the bank would also arrange a 25 million pound syndicated lease
financing this year.
Thomas declined to say who the sukuk was being arranged for, saying only that it was linked to an
unidentified firm's "cash flow related to government contracts." The sukuk is waiting for completion, he
said, adding that the bank was "nearly there." He added that Gatehouse was also mulling the creation of a
real estate investment trust and looking at opportunities in trade finance.
Saeed Ahmad new PTCL chairman
KARACHI (February 26, 2011): Saeed Ahmad Khan has been appointed as chairman of Pakistan
Telecommunication Company Ltd board of directors from February 24, 2011 in place of Naguibullah Malik.
According to information reaching KSE here on Friday, Federal Secretary Finance Dr Waqar Masood Khan
has been appointed as director of the company replacing former secretary Finance Salman Siddique who
resigned from the board.
Khurshed Ahmed Junejo has also resigned from the board of directors. However, CEO of the company
Walid Irshad will continue for next term. Other members of the board included Mushtaq Ahmed Bhatti,
chairman and CEO Etisalat International Pakistan LLC UAE Abdulrahim A Al Nooryani, chief human
resource officer Etisalat UAE Abdulaziz A Al Sawaleh, Fadhil Al-Ansari, Abdulaziz H Taryam and Dr
Ahmed Al Jarwan.
Wyeth Pakistan posts Rs 26.459 million profit after tax
KARACHI (February 26, 2011): Wyeth Pakistan has posted Rs 26.459 million as profit after tax in the year
ended November 30, 2010 as compared to after tax loss of Rs 86.849 million recorded in the corresponding
period in 2009. The company's earning per share stood at Rs 18.61 in the period under review against per
share loss of Rs 61.09 in the same period a year back.
The board of directors of the company in its meeting held here on Friday recommended a final cash
dividend for the year at Rs 10.00 per share ie 10 percent. According to the financial results sent to Karachi
Stock Exchange (KSE), the company's net sales increased to Rs 2.310 billion against Rs 2.306 billion, while
the cost of sales stood at Rs 1.829 billion against Rs 1.805 billion. The company posted Rs 43.229 million
as profit before taxation in this period against before tax loss of Rs 31.593 million in the same period last a
year back.
Friday, February 25, 2011
OGDC earns Rs32bn, skips dividend:
KARACHI, Feb 24: The oil and gas exploration heavyweight — Oil & Gas Development Company
(OGDC)— announced profit after tax (PAT) amounting to Rs31.59 billion for the first half of the financial
year 2011.
The figure represented earning per share (eps) at Rs7.35 and was thought to be generally below analysts’
forecasts and showing marginal 11 per cent growth over PAT at Rs28.4 billion (eps: Rs6.62) earned in the
corresponding period of the previous year.
The board, which met on Thursday, also skipped an interim cash dividend against analysts’ expectations of
cash payout between Re1 to Rs1.50 per share. The company posted top line growth at 12 per cent to
Rs81.09 billion. AKD Securities analyst Naveed Vakil said that the growth was “in line with estimates and
was underpinned by higher development returns and marginal increase in gas volumes.” The OGDC
recorded a decline of 25 per cent year-on-year (YoY) in exploration expenditure due to a trailing schedule
and lower exploration write-offs. “The lower than expected growth in the bottom line is mainly attributable
to higher effective tax rate of 44.9 per cent recorded in 2QFY11,” commented analyst Umer Bin Ayaz.
The analyst said that the rise of 12 per cent in net revenues in 1HFY11 to Rs81.1 billion was “primarily on
the back of higher crude oil and gas wellhead prices in 1HFY11 (Arab Light prices averaging at $78.8 per
barrel, up 9 per cent YoY).”
Additionally, a 5 per cent YoY growth in hydrocarbon production mainly led by improved gas volumes also
supported the top line. Operating expenses for the company settled at Rs12.8 billion compared to Rs10.8
billion in the same period last year. Exploration expenses on the other hand, declined by 25 per cent YoY at
Rs3.5 billion. Other income decreased 22 per cent to Rs960 million mainly due to lower income on deposits.
(OGDC)— announced profit after tax (PAT) amounting to Rs31.59 billion for the first half of the financial
year 2011.
The figure represented earning per share (eps) at Rs7.35 and was thought to be generally below analysts’
forecasts and showing marginal 11 per cent growth over PAT at Rs28.4 billion (eps: Rs6.62) earned in the
corresponding period of the previous year.
The board, which met on Thursday, also skipped an interim cash dividend against analysts’ expectations of
cash payout between Re1 to Rs1.50 per share. The company posted top line growth at 12 per cent to
Rs81.09 billion. AKD Securities analyst Naveed Vakil said that the growth was “in line with estimates and
was underpinned by higher development returns and marginal increase in gas volumes.” The OGDC
recorded a decline of 25 per cent year-on-year (YoY) in exploration expenditure due to a trailing schedule
and lower exploration write-offs. “The lower than expected growth in the bottom line is mainly attributable
to higher effective tax rate of 44.9 per cent recorded in 2QFY11,” commented analyst Umer Bin Ayaz.
The analyst said that the rise of 12 per cent in net revenues in 1HFY11 to Rs81.1 billion was “primarily on
the back of higher crude oil and gas wellhead prices in 1HFY11 (Arab Light prices averaging at $78.8 per
barrel, up 9 per cent YoY).”
Additionally, a 5 per cent YoY growth in hydrocarbon production mainly led by improved gas volumes also
supported the top line. Operating expenses for the company settled at Rs12.8 billion compared to Rs10.8
billion in the same period last year. Exploration expenses on the other hand, declined by 25 per cent YoY at
Rs3.5 billion. Other income decreased 22 per cent to Rs960 million mainly due to lower income on deposits.
Textile exports can touch $15bn mark:
KARACHI: Pakistan’s textile exports can rise to at least $ 15 billion in next two years from the present
figure of $ 9 billion per annum by ensuring uninterrupted supply of gas, electricity and water at the
affordable and supportive prices to the textile industry along with availability of standard infrastructure,
matching incentives and facilities.
Chairman All Pakistan Textile Processing Mills Association Abdul Shakoor Khatri Thursday said Pakistan
could take full advantage of global cotton shortage and should make the best use of its world known
spinning sector that has capability and potential to make the country as leader in spinning yarn production in
the world. He said Pakistan should focus on high value adding textile products instead of exporting cotton
and yarn. He said textile industry especially the processing mills were facing serious problems which need
to be immediately addressed in the greater national interest. He urged the government to withdraw duties on
finishing chemicals, which were imported from USA, Europe and Japan. Similarly, another raw material
named textile thickeners being imported from India be placed on the free import list in bilateral trade and be
made duty-free.
figure of $ 9 billion per annum by ensuring uninterrupted supply of gas, electricity and water at the
affordable and supportive prices to the textile industry along with availability of standard infrastructure,
matching incentives and facilities.
Chairman All Pakistan Textile Processing Mills Association Abdul Shakoor Khatri Thursday said Pakistan
could take full advantage of global cotton shortage and should make the best use of its world known
spinning sector that has capability and potential to make the country as leader in spinning yarn production in
the world. He said Pakistan should focus on high value adding textile products instead of exporting cotton
and yarn. He said textile industry especially the processing mills were facing serious problems which need
to be immediately addressed in the greater national interest. He urged the government to withdraw duties on
finishing chemicals, which were imported from USA, Europe and Japan. Similarly, another raw material
named textile thickeners being imported from India be placed on the free import list in bilateral trade and be
made duty-free.
PTCL records Rs 1.94 billion Q2 profit:
ISLAMABAD: Pakistan Teleco-mmunication Company Limited (PTCL) Thursday announced its financial
results for the 2nd quarter from 1st October 2010 to 31st December 2010. The company announced a net
profit of Rs 1.94 billion compared to Rs 2.78 billion recorded in the same period last year.
PTCL half yearly net profit for year 2010-11 stood at Rs 4.02 billion compared to Rs 5.35 billion for the
preceding year.
In the first half of the financial year 2010-11, PTCL continued its strategy of innovation and futuristic
growth. By developing new sources of income, on the commercial side, the growth momentum of PTCL
remained strong in emerging segments of Broadband and Corporate Services. PTCL remained focused on
its strategy by providing multiple solutions to the business and household market segments and extending
vital services to other telecom operators in Pakistan.
One of the major highlights of the first half of the current financial year was the launch of IMEWE
submarine cable—13000 kilometer of the most advanced fiber optic submarine cable traveling through three
continents to interconnect South Asia to Western Europe. IMEWE along with PTCL’s previous two
submarine cables namely SMW3, SMW4 hold the status of a “backbone” for country’s telecommunication
infrastructure.
Another big achievement was the launch of PTCL’s Data Centers in Karachi and Lahore, which are
designed and built to accommodate comprehensive data in a secured, managed and climatically controlled
environment. These internationally certified and recognised Data Centres benefit PTCL’s customers in
terms of cost-effesctiveness, efficiently of processes and scalability of needs.
PTCL has also worked on the network expansion in the financial year. The Pakistan Internet Exchange
(PIE) has been expanded by establishing an international presence. PTCL has also planned expansions in
areas, which were not served before through USF subsidy.
In order to address the diversified needs of its customer base, PTCL continued to introduce innovative
products and services based on latest technology. PTCL remained the largest and fastest growing broadband
service provider in Pakistan and has launched 2Mbps Broadband Data Rate for its customers.
PTCL has also been the recipient of the prestigious Consumer’s Choice Award 2010 for its product EVO.
PTCL EVO NITRO wireless broadband service based on 3G technology has revolutionised the internet
experience in the country. In less than a year, EVO has become the country’s fast growing wireless
broadband network with connectivity and roaming in over 100 cities across.
Conscious efforts were made to further facilitate landline customers by expanding the spectrum of available
services and packages. The geographical reach of popular packages was extended to benefit a broader
customer base. PTCL further streamlined its pricing strategy to make it more customer focused by offering
convenient payment plans.
results for the 2nd quarter from 1st October 2010 to 31st December 2010. The company announced a net
profit of Rs 1.94 billion compared to Rs 2.78 billion recorded in the same period last year.
PTCL half yearly net profit for year 2010-11 stood at Rs 4.02 billion compared to Rs 5.35 billion for the
preceding year.
In the first half of the financial year 2010-11, PTCL continued its strategy of innovation and futuristic
growth. By developing new sources of income, on the commercial side, the growth momentum of PTCL
remained strong in emerging segments of Broadband and Corporate Services. PTCL remained focused on
its strategy by providing multiple solutions to the business and household market segments and extending
vital services to other telecom operators in Pakistan.
One of the major highlights of the first half of the current financial year was the launch of IMEWE
submarine cable—13000 kilometer of the most advanced fiber optic submarine cable traveling through three
continents to interconnect South Asia to Western Europe. IMEWE along with PTCL’s previous two
submarine cables namely SMW3, SMW4 hold the status of a “backbone” for country’s telecommunication
infrastructure.
Another big achievement was the launch of PTCL’s Data Centers in Karachi and Lahore, which are
designed and built to accommodate comprehensive data in a secured, managed and climatically controlled
environment. These internationally certified and recognised Data Centres benefit PTCL’s customers in
terms of cost-effesctiveness, efficiently of processes and scalability of needs.
PTCL has also worked on the network expansion in the financial year. The Pakistan Internet Exchange
(PIE) has been expanded by establishing an international presence. PTCL has also planned expansions in
areas, which were not served before through USF subsidy.
In order to address the diversified needs of its customer base, PTCL continued to introduce innovative
products and services based on latest technology. PTCL remained the largest and fastest growing broadband
service provider in Pakistan and has launched 2Mbps Broadband Data Rate for its customers.
PTCL has also been the recipient of the prestigious Consumer’s Choice Award 2010 for its product EVO.
PTCL EVO NITRO wireless broadband service based on 3G technology has revolutionised the internet
experience in the country. In less than a year, EVO has become the country’s fast growing wireless
broadband network with connectivity and roaming in over 100 cities across.
Conscious efforts were made to further facilitate landline customers by expanding the spectrum of available
services and packages. The geographical reach of popular packages was extended to benefit a broader
customer base. PTCL further streamlined its pricing strategy to make it more customer focused by offering
convenient payment plans.
Oil down in Asia:
SINGAPORE: Crude prices fell in Asian trade Friday as supply fears eased with oil cartel OPEC promising
to boost output to make up for any production loss in revolt-hit Libya, analysts said.
New York's main contract, light sweet crude for April delivery, dipped 40 cents to $96.88 per barrel.
Brent North Sea crude for delivery in April was down 47 cents to $110.89.
"The fact that Organisation of the Petroleum Exporting Countries (OPEC) and Saudi Arabia were willing to
increase oil production, has lowered oil prices," said Ong Yi Ling, investment analyst for Phillip Futures in
Singapore.
Saudi Oil Minister Ali al-Naimi said on Tuesday OPEC was prepared to meet any shortage of supplies due
to unrest in the Middle East and that its members had sufficient spare capacity to do so.
The OPEC kingpin also on Thursday reassured oil consumers that the nation would boost production as well
to make up for any production lost in Libya, according to oil specialist Platts.
Investors were also monitoring the situation in neighbouring Bahrain, where thousands of protesters were
staging a march in Manama and pressing an 11-day uprising against the monarchy, Ong added.
"While Bahrain is not a major oil producer, it has close ties to Saudi Arabia, so it is important to the
strategic balance of power in the Middle East," Ong said.
to boost output to make up for any production loss in revolt-hit Libya, analysts said.
New York's main contract, light sweet crude for April delivery, dipped 40 cents to $96.88 per barrel.
Brent North Sea crude for delivery in April was down 47 cents to $110.89.
"The fact that Organisation of the Petroleum Exporting Countries (OPEC) and Saudi Arabia were willing to
increase oil production, has lowered oil prices," said Ong Yi Ling, investment analyst for Phillip Futures in
Singapore.
Saudi Oil Minister Ali al-Naimi said on Tuesday OPEC was prepared to meet any shortage of supplies due
to unrest in the Middle East and that its members had sufficient spare capacity to do so.
The OPEC kingpin also on Thursday reassured oil consumers that the nation would boost production as well
to make up for any production lost in Libya, according to oil specialist Platts.
Investors were also monitoring the situation in neighbouring Bahrain, where thousands of protesters were
staging a march in Manama and pressing an 11-day uprising against the monarchy, Ong added.
"While Bahrain is not a major oil producer, it has close ties to Saudi Arabia, so it is important to the
strategic balance of power in the Middle East," Ong said.
Forex reserves rise to record $17.59bn:
KARACHI: Foreign exchange reserves rose to a record $17.59 billion in the week ending Feb 19, up from $17.44 billion the previous week, the State Bank of Pakistan (SBP) said on Thursday.
Reserves held by the SBP rose to $14.08 billion from $13.91 billion in the week ending Feb. 19, while those held by commercial banks fell to $3.51 billion from $3.53 billion, said the SBP.
A rise in remittances and exports were the main reasons for the increase in foreign exchange reserves, analysts said.
Remittances by overseas Pakistanis were recorded at $6.12 billion during the first seven months of the fiscal year 2010/11, up 17.70 percent from the same period last year, according to data from the State Bank of Pakistan.
Reserves held by the SBP rose to $14.08 billion from $13.91 billion in the week ending Feb. 19, while those held by commercial banks fell to $3.51 billion from $3.53 billion, said the SBP.
A rise in remittances and exports were the main reasons for the increase in foreign exchange reserves, analysts said.
Remittances by overseas Pakistanis were recorded at $6.12 billion during the first seven months of the fiscal year 2010/11, up 17.70 percent from the same period last year, according to data from the State Bank of Pakistan.
National Assembly passes Banking Companies, FBR Amendment bills:
ISLAMABAD (February 25, 2011): The National Assembly Thursday passed ''''The Banking Companies(Amendment) Bill, 2010 and The Federal Board of Revenue (Amendment) Bill, 2010'''' unanimously.
Federal Minister for Inter Provincial Co-ordination Mian Raza Rabbani moved the Bills in the Lower House of the Parliament for passage, which were passed by the House unanimously without any amendment. Zahid Ahmed of Pakistan Muslim League-Nawaz (PML-N) withdrew his amendments. He said that the Senate
Standing Committee has approved the Bills unanimously and he withdrew his amendments. According to statement of objects and reasons of The Banking Companies (Amendment) Bill, 2010, the proposed amendments in Banking Companies Ordinance, 1962 would enable State Bank of Pakistan to change management in banks, impose losses on shareholders by writing down their capital, intervene and take
control of banks, appoint administrators to manage banks and restructure banks when symptoms of crises are determined.
The clauses of the Bill are given as fallow:
2. Amendment of section 14, Ordinance LVII of 1962. - In the Banking Companies Ordinance, 1962 (LVIIof 1962), hereinafter referred to as the said Ordinance, in section 14, after sub-section (3). The following new sub-sections shall be added, namely:
"(4) The State Bank, if satisfied, may require any banking company, by an order in writing stating reasons,to increase its paid up capital by such amount and within such period as may be specified in the order and the State Bank shall exercise the power reasonably, fairly and justly.
(5) Notwithstanding any provision contained in any other law for the time being in force:
(a) if the State Bank has determined that a person is holding or is a beneficial owner of five percent or more shares of a banking company without prior approval of the State Bank or a person that acquired shareholding with prior approval of the State Bank subsequently fails to meet the fit and proper test as the State Bank may, by an order in writing stating reasons, require such person to reduce, divest or transfer to a fit and proper person, his shareholding in the banking company within such reasonable period and in such manner as may be specified in the order;
(b) where a person holding five percent or more shares of a banking company is ''''or is likely to be detrimental to the interest of the banking company or its depositors, the State Bank may, by an order in writing stating reasons, require such person to divest his shareholding to a fit and proper person. State Bank
shall exercise the power reasonably, fairly and justly; and (c) no order under clause (a) or clause (b) shall be made unless the person concerned has been given
reasonable opportunity of making a representation to the State Bank against the proposed order;
If the State Bank is of opinion that any delay would be detrimental to the public interest or the interest of the banking company or its depositors, the State Bank may, at the time of giving the opportunity aforesaid or at any time thereafter and pending the consideration of the representation aforesaid, if any, may make an
appropriate interim order, and conduct the proceedings in a reasonably expeditious manner.
The interim order may include prohibition of,(i)transfer of, or the carrying out of the agreement or arrangement to transfer such shares; (ii) the exercise of voting rights in respect of such shares; (iii)the payment of cash or stock dividends in respect of such shares; and (iv)the issue of further shares to the concerned shareholder; (d) where direction given under clause (a) or clause (b) is not complied with, the State Bank may dispose of such shares either through stock exchange or public auction. The sale proceeds of such shares, after deduction of any expenses incurred by the State Bank, shall be paid to the respective
shareholders within a period of three months. If necessary, the State Bank may require:
(i) issuance of duplicate shares in place of the original shares; and (ii) the Central Depository Company to make appropriate changes in their records; and (e) any person aggrieved by the decision of the State Bank
under clause (a), (b) and (d) may prefer appeal to the Central Board of Directors of the State Bank but pending decision of the proceedings, the shareholder shall not derive any benefit including dividends, right
shares, voting rights, etc, from his shareholding without express permission of the Central Board.
Exp1anation: The expression "beneficial ownership" shall include the explanation given in section 224 of the Companies Ordinance, 1984 (XLVII of 1984).".
3. Amendment of section 19, Ordinance LVII of 1962.- In the said Ordinance, in section 19, after subsection (3), the following new sub-sections shall be added, namely:-
"(4) If the State Bank is satisfied that conditions are not favourable for such payment, or the financial position of a banking company so warrants, it may, by order in writing stating reasons, restrict or prohibit any banking company from paying dividends to its shareholders for such period as may be specified in the
order and the State Bank shall exercise the power reasonably, fairly and justly.
(5) No order shall be made unless the banking company concerned has been given an opportunity of making a representation to the State Bank and where the State Bank is of the opinion that any delay would be detrimental to the public interest or the interest of the banking company or its depositors, the State Bank may, at the time of giving the opportunity aforesaid or'''' at any time thereafter and pending the consideration of the representation aforesaid, if any, make an appropriate interim order".
4. Amendment of section 26A, Ordinance LVII of 1962.- In the said Ordinance, in section 26A, after subsection
(4), the following new sub-sections shall be added, namely:
"(5) Where the State Bank has determined, that a banking company;
(a) is carrying on its business in a manner detrimental to the interest of its depositors; or
(b) is materially unable, to discharge its financial obligations or continue its operations; or
(c) has failed to meet prescribed capital requirements or cash and liquidity requirements or provisioning
requirements or any condition specified in the license or any preventive or remedial measure prescribed by
the State Bank.
The State Bank, by an order in writing stating reasons, may impose conditions or restrictions on the banking
company on accepting deposits from any class of depositors or type of deposits for such period as may be
specified in the order and the State Bank shall exercise the power reasonably, fairly and justly.
(6) No order shall be made unless the banking company concerned has been given an opportunity of making
a representation to1 the State Bank and if the State Bank is of the opinion that any delay would be
detrimental to the public interest or the interest of the banking company or its depositors, the State Bank
may, at the ,time of giving the opportunity aforesaid or at any time thereafter and pending the consideration
of the representation aforesaid, if any, may make an appropriate interim order.".
5. Amendment of section 29, Ordinance LVII of 1962.- In the said Ordinance, in section 29, after subsection
(3), the following new subsection shall be added, namely:-
"(4) The cash deposited by a banking company or financial institution under sub-section (1) and by a
scheduled bank under the State Bank of Pakistan Act, 1956 (XXXIII of 1956) shall be deemed to be part of
the assets of the banking company but shall not be subject to any encumbrance, nor shall it be available for
the discharge of any liability of the banking company or financial institution other than order of liquidation
made by the High Court under this Ordinance, nor shall the said cash deposit be available to attachments in
execution of any decree or recoverable under order of any authority under any law for the time being in
force, except any claim of the State Bank.".
6. Amendment of section 42, Ordinance LVII of 1962.- In the said Ordinance, in sub-section (1), in clause
(d) , in sub-clause (v), for the full stop, at the end, semicolon shall be substituted and thereafter the
following new clause shall be added, namely:-
''''(e)- without prejudice to the generality of this section or any provision of this Ordinance.
(I) if the State Bank is satisfied that one or more of the circumstances exist under which a banking
company,-
(i) has become or is likely to become insolvent,
(ii) has suspended or is likely to suspend payments as these fall due;
(iii) has defaulted or is likely to default in making payments to depositors;
iv) is carrying on its business in a manner detrimental to the interests of its depositors, creditors or other
stakeholders;
(v) has contravened any provisions or any restrictions or condition imposed on its license;
(vi) has engaged any director, chief executive or an officer of a banking company who is or is likely to be
detrimental to the interests of the banking company or its depositors or otherwise undesirable;
(vii). has created hindrance, delay or obstruction for the State Bank in performance of its supervisory
functions;
(viii) has wilfully destroyed, concealed or moved outside of Pakistan all or part of its assets, the
administration, operation and books or records;
(ix) has failed to meet capital adequacy or minimum capital requirements prescribed by the State Bank;
(x) has defrauded its depositors and creditors;
(xi) is wilfully engaged in or is being used for criminal activities;
(xii) is part of a financial group which is under liquidation, or in respect of which a custodian, receiver,
administrator or liquidator has been appointed;
(xiii) is a branch or subsidiary of a banking company ~''''hose license to carry. on banking business in the
country of its origin has been cancelled;
(xiv) has breached requirements under any document of commitment to the State Bank; or
(xv) is otherwise in a situation or circumstance which in the opinion of the State Bank may materially
impair the ability of the banking company to make payments, meet its obligations or otherwise continue its
operations, the State Bank may, keeping in view the gravity of the situation and compliance behaviour of
the banking company, from time to time, invoke any one or more of the following actions, namely: -
(i) require the banking company to submit a plan of action to redress any discrepancies; - -
(ii) require the banking company or Board of Director of the banking company to furnish documents of
commitment for compliance with the measures prescribed by the State Bank and to secure the interests of its
depositors;
(iii) where the banking company or the Board of Dir~ fail to provide documents of commitment or full
obligation under the same pursuant to clause (ii State Bank may:
(a) take any action under section 41A, 41B or section 47; and
(b) carry out any capital reduction and cancel any portion of shares of the banking company which is
depleted or unrepresented by available assets or dilute the participation of the existing shareholders by
issuing shares to such persons and at such consideration as may be determined by the State Bank. Any order
passed by the State Bank under this sub-clause shall have effect notwithstanding the provisions contained in
section 96 to 107 of Companies Ordinance, 1984 (XLVII of 1984) or any other law for the time being in
force. The State Bank shall exercise the power reasonably, fairly and justly.
(IA) The State Bank shall provide an opportunity of being heard to the banking company or aggrieved
person before making the order and if the State Bank is of the opinion that any delay would be detrimental
to the public interest or the interest of the banking company or its depositors, the State Bank may, at the
time of giving the opportunity aforesaid or at any time thereafter and pending the consideration of the
representation aforesaid, if any, make an appropriate interim order.
The banking company or the aggrieved person shall have the right of appeal to the Central Board of
Directors of the State Bank;
(IB) Nothing contained in this section shall be read to dilute or affect powers of the State Bank otherwise
conferred in the Ordinance."
According to "The Federal Board of Revenue (Amendment) Bill, 2010" a Policy Board including the
representation of public and private sector would be established to provide guidance in matters relating to
the vision, mission and values of the board and guidelines in farming fiscal policy and in achieving goals
and targets.
Finance Minister shall be the Chairman of the Board. While the Board shall consists of members including
Minister of Commerce, Minister of Industries, Minister of Textile Industry, Minister of Privatisation,
Chairman Senate Standing Committee on Finance and Revenues, Chairman National Assembly Standing
Committee on Finance and Revenues, Chairman of FBR, one member from the Senate to be nominated by
Chairman Senate, one member from the National Assembly nominated by Speaker National Assembly and
such other members as the Prime Minister shall nominate having necessary qualifications, experience and
expertise from amongst sectoral specialists and businessmen on honorary basis.
The Bill further says that the Chairman of FBR shall act as Secretary of the Policy Board and at least one
meeting of the Board shall be held in each quarter of a financial year. The nominated members other than
ex-officio members shall be subject to ratification by the Standing Committees on Finance and Revenue of
the Senate and National Assembly.
Federal Minister for Inter Provincial Co-ordination Mian Raza Rabbani moved the Bills in the Lower House of the Parliament for passage, which were passed by the House unanimously without any amendment. Zahid Ahmed of Pakistan Muslim League-Nawaz (PML-N) withdrew his amendments. He said that the Senate
Standing Committee has approved the Bills unanimously and he withdrew his amendments. According to statement of objects and reasons of The Banking Companies (Amendment) Bill, 2010, the proposed amendments in Banking Companies Ordinance, 1962 would enable State Bank of Pakistan to change management in banks, impose losses on shareholders by writing down their capital, intervene and take
control of banks, appoint administrators to manage banks and restructure banks when symptoms of crises are determined.
The clauses of the Bill are given as fallow:
2. Amendment of section 14, Ordinance LVII of 1962. - In the Banking Companies Ordinance, 1962 (LVIIof 1962), hereinafter referred to as the said Ordinance, in section 14, after sub-section (3). The following new sub-sections shall be added, namely:
"(4) The State Bank, if satisfied, may require any banking company, by an order in writing stating reasons,to increase its paid up capital by such amount and within such period as may be specified in the order and the State Bank shall exercise the power reasonably, fairly and justly.
(5) Notwithstanding any provision contained in any other law for the time being in force:
(a) if the State Bank has determined that a person is holding or is a beneficial owner of five percent or more shares of a banking company without prior approval of the State Bank or a person that acquired shareholding with prior approval of the State Bank subsequently fails to meet the fit and proper test as the State Bank may, by an order in writing stating reasons, require such person to reduce, divest or transfer to a fit and proper person, his shareholding in the banking company within such reasonable period and in such manner as may be specified in the order;
(b) where a person holding five percent or more shares of a banking company is ''''or is likely to be detrimental to the interest of the banking company or its depositors, the State Bank may, by an order in writing stating reasons, require such person to divest his shareholding to a fit and proper person. State Bank
shall exercise the power reasonably, fairly and justly; and (c) no order under clause (a) or clause (b) shall be made unless the person concerned has been given
reasonable opportunity of making a representation to the State Bank against the proposed order;
If the State Bank is of opinion that any delay would be detrimental to the public interest or the interest of the banking company or its depositors, the State Bank may, at the time of giving the opportunity aforesaid or at any time thereafter and pending the consideration of the representation aforesaid, if any, may make an
appropriate interim order, and conduct the proceedings in a reasonably expeditious manner.
The interim order may include prohibition of,(i)transfer of, or the carrying out of the agreement or arrangement to transfer such shares; (ii) the exercise of voting rights in respect of such shares; (iii)the payment of cash or stock dividends in respect of such shares; and (iv)the issue of further shares to the concerned shareholder; (d) where direction given under clause (a) or clause (b) is not complied with, the State Bank may dispose of such shares either through stock exchange or public auction. The sale proceeds of such shares, after deduction of any expenses incurred by the State Bank, shall be paid to the respective
shareholders within a period of three months. If necessary, the State Bank may require:
(i) issuance of duplicate shares in place of the original shares; and (ii) the Central Depository Company to make appropriate changes in their records; and (e) any person aggrieved by the decision of the State Bank
under clause (a), (b) and (d) may prefer appeal to the Central Board of Directors of the State Bank but pending decision of the proceedings, the shareholder shall not derive any benefit including dividends, right
shares, voting rights, etc, from his shareholding without express permission of the Central Board.
Exp1anation: The expression "beneficial ownership" shall include the explanation given in section 224 of the Companies Ordinance, 1984 (XLVII of 1984).".
3. Amendment of section 19, Ordinance LVII of 1962.- In the said Ordinance, in section 19, after subsection (3), the following new sub-sections shall be added, namely:-
"(4) If the State Bank is satisfied that conditions are not favourable for such payment, or the financial position of a banking company so warrants, it may, by order in writing stating reasons, restrict or prohibit any banking company from paying dividends to its shareholders for such period as may be specified in the
order and the State Bank shall exercise the power reasonably, fairly and justly.
(5) No order shall be made unless the banking company concerned has been given an opportunity of making a representation to the State Bank and where the State Bank is of the opinion that any delay would be detrimental to the public interest or the interest of the banking company or its depositors, the State Bank may, at the time of giving the opportunity aforesaid or'''' at any time thereafter and pending the consideration of the representation aforesaid, if any, make an appropriate interim order".
4. Amendment of section 26A, Ordinance LVII of 1962.- In the said Ordinance, in section 26A, after subsection
(4), the following new sub-sections shall be added, namely:
"(5) Where the State Bank has determined, that a banking company;
(a) is carrying on its business in a manner detrimental to the interest of its depositors; or
(b) is materially unable, to discharge its financial obligations or continue its operations; or
(c) has failed to meet prescribed capital requirements or cash and liquidity requirements or provisioning
requirements or any condition specified in the license or any preventive or remedial measure prescribed by
the State Bank.
The State Bank, by an order in writing stating reasons, may impose conditions or restrictions on the banking
company on accepting deposits from any class of depositors or type of deposits for such period as may be
specified in the order and the State Bank shall exercise the power reasonably, fairly and justly.
(6) No order shall be made unless the banking company concerned has been given an opportunity of making
a representation to1 the State Bank and if the State Bank is of the opinion that any delay would be
detrimental to the public interest or the interest of the banking company or its depositors, the State Bank
may, at the ,time of giving the opportunity aforesaid or at any time thereafter and pending the consideration
of the representation aforesaid, if any, may make an appropriate interim order.".
5. Amendment of section 29, Ordinance LVII of 1962.- In the said Ordinance, in section 29, after subsection
(3), the following new subsection shall be added, namely:-
"(4) The cash deposited by a banking company or financial institution under sub-section (1) and by a
scheduled bank under the State Bank of Pakistan Act, 1956 (XXXIII of 1956) shall be deemed to be part of
the assets of the banking company but shall not be subject to any encumbrance, nor shall it be available for
the discharge of any liability of the banking company or financial institution other than order of liquidation
made by the High Court under this Ordinance, nor shall the said cash deposit be available to attachments in
execution of any decree or recoverable under order of any authority under any law for the time being in
force, except any claim of the State Bank.".
6. Amendment of section 42, Ordinance LVII of 1962.- In the said Ordinance, in sub-section (1), in clause
(d) , in sub-clause (v), for the full stop, at the end, semicolon shall be substituted and thereafter the
following new clause shall be added, namely:-
''''(e)- without prejudice to the generality of this section or any provision of this Ordinance.
(I) if the State Bank is satisfied that one or more of the circumstances exist under which a banking
company,-
(i) has become or is likely to become insolvent,
(ii) has suspended or is likely to suspend payments as these fall due;
(iii) has defaulted or is likely to default in making payments to depositors;
iv) is carrying on its business in a manner detrimental to the interests of its depositors, creditors or other
stakeholders;
(v) has contravened any provisions or any restrictions or condition imposed on its license;
(vi) has engaged any director, chief executive or an officer of a banking company who is or is likely to be
detrimental to the interests of the banking company or its depositors or otherwise undesirable;
(vii). has created hindrance, delay or obstruction for the State Bank in performance of its supervisory
functions;
(viii) has wilfully destroyed, concealed or moved outside of Pakistan all or part of its assets, the
administration, operation and books or records;
(ix) has failed to meet capital adequacy or minimum capital requirements prescribed by the State Bank;
(x) has defrauded its depositors and creditors;
(xi) is wilfully engaged in or is being used for criminal activities;
(xii) is part of a financial group which is under liquidation, or in respect of which a custodian, receiver,
administrator or liquidator has been appointed;
(xiii) is a branch or subsidiary of a banking company ~''''hose license to carry. on banking business in the
country of its origin has been cancelled;
(xiv) has breached requirements under any document of commitment to the State Bank; or
(xv) is otherwise in a situation or circumstance which in the opinion of the State Bank may materially
impair the ability of the banking company to make payments, meet its obligations or otherwise continue its
operations, the State Bank may, keeping in view the gravity of the situation and compliance behaviour of
the banking company, from time to time, invoke any one or more of the following actions, namely: -
(i) require the banking company to submit a plan of action to redress any discrepancies; - -
(ii) require the banking company or Board of Director of the banking company to furnish documents of
commitment for compliance with the measures prescribed by the State Bank and to secure the interests of its
depositors;
(iii) where the banking company or the Board of Dir~ fail to provide documents of commitment or full
obligation under the same pursuant to clause (ii State Bank may:
(a) take any action under section 41A, 41B or section 47; and
(b) carry out any capital reduction and cancel any portion of shares of the banking company which is
depleted or unrepresented by available assets or dilute the participation of the existing shareholders by
issuing shares to such persons and at such consideration as may be determined by the State Bank. Any order
passed by the State Bank under this sub-clause shall have effect notwithstanding the provisions contained in
section 96 to 107 of Companies Ordinance, 1984 (XLVII of 1984) or any other law for the time being in
force. The State Bank shall exercise the power reasonably, fairly and justly.
(IA) The State Bank shall provide an opportunity of being heard to the banking company or aggrieved
person before making the order and if the State Bank is of the opinion that any delay would be detrimental
to the public interest or the interest of the banking company or its depositors, the State Bank may, at the
time of giving the opportunity aforesaid or at any time thereafter and pending the consideration of the
representation aforesaid, if any, make an appropriate interim order.
The banking company or the aggrieved person shall have the right of appeal to the Central Board of
Directors of the State Bank;
(IB) Nothing contained in this section shall be read to dilute or affect powers of the State Bank otherwise
conferred in the Ordinance."
According to "The Federal Board of Revenue (Amendment) Bill, 2010" a Policy Board including the
representation of public and private sector would be established to provide guidance in matters relating to
the vision, mission and values of the board and guidelines in farming fiscal policy and in achieving goals
and targets.
Finance Minister shall be the Chairman of the Board. While the Board shall consists of members including
Minister of Commerce, Minister of Industries, Minister of Textile Industry, Minister of Privatisation,
Chairman Senate Standing Committee on Finance and Revenues, Chairman National Assembly Standing
Committee on Finance and Revenues, Chairman of FBR, one member from the Senate to be nominated by
Chairman Senate, one member from the National Assembly nominated by Speaker National Assembly and
such other members as the Prime Minister shall nominate having necessary qualifications, experience and
expertise from amongst sectoral specialists and businessmen on honorary basis.
The Bill further says that the Chairman of FBR shall act as Secretary of the Policy Board and at least one
meeting of the Board shall be held in each quarter of a financial year. The nominated members other than
ex-officio members shall be subject to ratification by the Standing Committees on Finance and Revenue of
the Senate and National Assembly.
General Motors posts first full-year profit since 2004:
DETROIT (February 25, 2011): General Motors Co posted fourth-quarter results that topped Wall Street expectations, capping its most profitable year in over a decade after slashing costs and debt in a landmark bankruptcy. Profit for all of 2010 was $4.7 billion, GM's first full-year earnings since 2004 and its largest profit since 1999, when it earned $6 billion on booming sales of trucks and SUVs.
GM shares opened at $34.85, up 26 cents, following the earnings report early Thursday. Separately, GM said the audit committee of its board had determined the company's financial operations under Chief Financial Officer Chris Liddell had remedied a "material weakness" in financial reporting, addressing a
lingering concern for investors.
The automaker said it would pay more than $200 million in bonuses to hourly workers, including payouts of about $4,300 for each of its roughly 45,000 US factory workers represented by the United Auto Workers
union. Liddell said he expected the current quarter would represent a "strong start" to 2011 and said the fourth quarter had been slightly ahead of the automaker's internal projections.
Fourth-quarter net income was $510 million, or 31 cents per share. Earnings for the first three quarters of 2010 totalled $4.2 billion. GM ended 2010 with nearly $28 billion in cash and about $5 billion on an
undrawn credit facility. Its US pension plans were underfunded by about $12 billion, Liddell said.
GM shares opened at $34.85, up 26 cents, following the earnings report early Thursday. Separately, GM said the audit committee of its board had determined the company's financial operations under Chief Financial Officer Chris Liddell had remedied a "material weakness" in financial reporting, addressing a
lingering concern for investors.
The automaker said it would pay more than $200 million in bonuses to hourly workers, including payouts of about $4,300 for each of its roughly 45,000 US factory workers represented by the United Auto Workers
union. Liddell said he expected the current quarter would represent a "strong start" to 2011 and said the fourth quarter had been slightly ahead of the automaker's internal projections.
Fourth-quarter net income was $510 million, or 31 cents per share. Earnings for the first three quarters of 2010 totalled $4.2 billion. GM ended 2010 with nearly $28 billion in cash and about $5 billion on an
undrawn credit facility. Its US pension plans were underfunded by about $12 billion, Liddell said.
BASF unveils record results:
FRANKFURT (February 25, 2011): BASF, the world's biggest chemicals company, unveiled some record 2010 results Thursday and joined rivals in giving an upbeat outlook for this year despite oil output suspensions in Libya. BASF said its 2010 net profit leapt more than three-fold to 4.56 billion euros ($6.27
billion), though the year-earlier figure of 1.41 billion was in large part a reflection of the global economic slowdown.
Despite production problems in North Africa, chairman Juergen Hambrecht was quoted by a statement as saying it is now "optimistic for the first quarter (of 2011) and the year as a whole." Shares in the group were only slightly higher in early trading on the Frankfurt stock exchange however. Hambrecht acknowledged that "we are concerned about Libya," where BASF's Wintershall oil unit has halted production, leaving only a small group of core workers at its sites.
Meanwhile however, the German group "achieved record sales and earnings in 2010," its boss said, with the former climbing by 26 percent to 63.9 billion euros. Earnings before interest and tax (Ebit) and special items leapt by 68 percent to 8.1 billion euros, the statement added, as BASF continued its integration of the
specialty chemicals group Ciba. It also finalised the purchase of Cognis, another small chemicals firm focused on health and nutrition products.
billion), though the year-earlier figure of 1.41 billion was in large part a reflection of the global economic slowdown.
Despite production problems in North Africa, chairman Juergen Hambrecht was quoted by a statement as saying it is now "optimistic for the first quarter (of 2011) and the year as a whole." Shares in the group were only slightly higher in early trading on the Frankfurt stock exchange however. Hambrecht acknowledged that "we are concerned about Libya," where BASF's Wintershall oil unit has halted production, leaving only a small group of core workers at its sites.
Meanwhile however, the German group "achieved record sales and earnings in 2010," its boss said, with the former climbing by 26 percent to 63.9 billion euros. Earnings before interest and tax (Ebit) and special items leapt by 68 percent to 8.1 billion euros, the statement added, as BASF continued its integration of the
specialty chemicals group Ciba. It also finalised the purchase of Cognis, another small chemicals firm focused on health and nutrition products.
Mahana Munafa Account Bank AL Habib offers higher monthly returns:
KARACHI (February 25, 2011): Bank AL Habib offers AL Habib Mahana Munafa Account featuring monthly payment of profits. The investment can be made with a small amount of Rs 25,000 and is available in five flexible schemes from one to five years term and monthly profit payments up to 12.50 percent p.a. on a five-year deposit.
Free ATM/Debit Card and loan up to 90 percent of deposit amount is also offered. At present, Bank AL-Habib has a network of 302 branches and sub-branches in 87 cities and towns of Pakistan, including a
wholesale branch in the Kingdom of Bahrain.
Free ATM/Debit Card and loan up to 90 percent of deposit amount is also offered. At present, Bank AL-Habib has a network of 302 branches and sub-branches in 87 cities and towns of Pakistan, including a
wholesale branch in the Kingdom of Bahrain.
Pacra upgrades NML entity ratings:
KARACHI (February 25, 2011): The Pakistan Credit Rating Agency (Pacra) has upgraded the long-term
and short-term entity ratings of Nishat Mills Limited (NML) to AA- (double A minus) and A1+ (A one
plus), respectively. The ratings denote a very low expectation of credit risk.
They indicate very strong capacity for timely payment of financial commitments. This capacity is not
significantly vulnerable to foreseeable events. The ratings reflect NML's ability to maintain its positioning
in the key markets despite tough economic times. The company's diversified revenue stream, large market
segmentation, and sound customer base, while sustaining its margins, have led to a considerably protected
business risk profile. In addition, ratings incorporate a consistent dividend stream from strategic investments
- lately supplemented by acquisitions in the power segment. The entity continues to maintain sound
coverage, engendering good risk absorption capacity against the challenging business dynamics.
Meanwhile, NML's association with Nishat Group as its flagship company remains a key rating factor.
and short-term entity ratings of Nishat Mills Limited (NML) to AA- (double A minus) and A1+ (A one
plus), respectively. The ratings denote a very low expectation of credit risk.
They indicate very strong capacity for timely payment of financial commitments. This capacity is not
significantly vulnerable to foreseeable events. The ratings reflect NML's ability to maintain its positioning
in the key markets despite tough economic times. The company's diversified revenue stream, large market
segmentation, and sound customer base, while sustaining its margins, have led to a considerably protected
business risk profile. In addition, ratings incorporate a consistent dividend stream from strategic investments
- lately supplemented by acquisitions in the power segment. The entity continues to maintain sound
coverage, engendering good risk absorption capacity against the challenging business dynamics.
Meanwhile, NML's association with Nishat Group as its flagship company remains a key rating factor.
SBP asks banks to pay outstanding claims to exporters:
KARACHI (February 25, 2011): The State Bank of Pakistan on Thursday announced that the offices of
SBP-BSC (Bank) would release Export Finance Mark up Rate Facility to the extent of 8 percent of total
claims against the cases, which have been found in order and where 92 percent reimbursement has already
been made to the banks under the scheme.
Banks should immediately pass on this additional reimbursement to the concerned exporters, says SMEFD
Circular Letter No 07 of 24th February, 2011 issued to the Presidents/CEOs of all banks. It may be pointed
out that the Ministry of Textile Industry has released budgetary allocation for FY 2010-11 to release up-to 8
percent un-paid Export Finance Mark-up Rate Facility for the period from 1st September, 2009 to 28th
February, 2010.
SBP-BSC (Bank) would release Export Finance Mark up Rate Facility to the extent of 8 percent of total
claims against the cases, which have been found in order and where 92 percent reimbursement has already
been made to the banks under the scheme.
Banks should immediately pass on this additional reimbursement to the concerned exporters, says SMEFD
Circular Letter No 07 of 24th February, 2011 issued to the Presidents/CEOs of all banks. It may be pointed
out that the Ministry of Textile Industry has released budgetary allocation for FY 2010-11 to release up-to 8
percent un-paid Export Finance Mark-up Rate Facility for the period from 1st September, 2009 to 28th
February, 2010.
SBP extends waiver up to June 30 for EFS
KARACHI (February 25, 2011): The State Bank of Pakistan has decided to extend waiver up to June 30,
2011 for availing financing under the Export Finance Scheme (EFS) to those exporters whose export
proceeds were overdue. The extension in waiver has been granted through a Circular (SMEFD Circular
Letter No 6) issued to the Presidents/ CEOs/Country Managers of all banks on Thursday.
It may be mentioned here that the State Bank had previously granted a waiver of 180 days, up to December
31, 2010 for the above mentioned purpose through its circular dated June 30, 2010.
2011 for availing financing under the Export Finance Scheme (EFS) to those exporters whose export
proceeds were overdue. The extension in waiver has been granted through a Circular (SMEFD Circular
Letter No 6) issued to the Presidents/ CEOs/Country Managers of all banks on Thursday.
It may be mentioned here that the State Bank had previously granted a waiver of 180 days, up to December
31, 2010 for the above mentioned purpose through its circular dated June 30, 2010.
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