AKD Quotidian about — KAPCO

Karachi, October 17, 2012 (PPI-OT): Kot Addu Power Company Limited (KAPCO) is scheduled to announce its 1QFY13 results on Monday, Oct 22’12.

According to AKD Securities expects the company to post earnings of PKR 1.8 billion (EPS: PKR 2.03) compared to earnings of PKR 1.2 billion (EPS: PKR 1.36) during the corresponding period last year, translating into a growth of 49.0%YoY. On a sequential basis, this translates into a growth of 4.0%QoQ. The growth in earnings is premised on average inflation in 1QFY13 at 9.15% and USD: PKR parity of 93.68 (4QFY12: PKR 91.36/US$). Power generation in 1QFY13 is forecast to stand at 1,539GWH (1QFY12: 1,340GWH), translating into a capacity factor of 52.0% with overall availability assumed at 96.0%. `Other income’ in the quarter is expected at PKR 1.56 billion based on receivables of PKR 69.3 billion in Jul’12 and Aug’12 and PKR 40.0 billion in Sep’12. In this regard, recall the decline in receivables (as well as payables) is based on GoP’s cash neutral transaction following issuance of PKR 82 billion in Privately Placed Term Finance Certificates (PPTFCs) by Power Holding (Private) Limited. At the same time, `Finance Cost’ is expected at PKR 1.97 billion in 1QFY13 based on cumulative debt (LT and ST) and payables of PKR 71.7 billion in Jul’12 and Aug’12 and PKR 46.0 billion in Sep’12. Inline with the company’s payout history, AKD Securities does not expect any dividend payout in IQ. At current levels, KAPCO offers an upside of 31.47% to AKD Securities’ target price of PKR 58.5 per share – Buy!

FFC: Result Preview 3QCY12

FFC’s BoD is scheduled to meet on Oct 21’12 to approve 9MCY12 results where AKD Securities expects NPAT of PKR 13.7 billion (EPS: PKR 10.77), down 1%YoY. Toptine is expected to increase by 30%YoY as local fertilizer manufacturers raised urea prices on imposition of GIDC and gas curtailment to Sui network-based urea manufacturers. However, higher revenue stream was partially offset by imposition of GIDC and skipping of dividend income by subsidiary FFBL in the previous quarter. On a sequential basis, AKD Securities expects NPAT to come off by 48%QoQ to PKR 3.37 billion (EPS: PKR 2.65) due to higher base effect (dealers pre- buying in 2QCY12 on price incentive offered by FFC). AKD Securities expects a dividend of PKR 2.50-2.75/share to accompany 3QCY12 results, leading 9MCY12 dividend to PKR 10.50-10.75/share.

FFC: 3QCY12 Result Preview

(PKR million) 3QCY12 QoQ 9MCY12 YoY
Net sales

13,875

-44%

50,006

30%

Gross profit

6,700

-42%

24,017

9%

Distribution Cost

1,340

4%

3,972

22%

Other income

425

33%

2,884

-34%

Financial Charges

308

-15%

949

58%

PBT

5,027

-47%

20,233

-2%

PAT

3,368

-48%

13,703

-1%

EPS (PKR) @1,272 million sh.

2.65

10.77

Urea offtake (ktons)

478

-41%

1,611

-10%

Source: Company Reports and AKD Research

Looking ahead to CY13, healthy dividend payout from subsidiary FFBL and expected increase in the pricing power of local fertilizer manufacturers (IMF is a possibility in CY13) will drive earning growth of 13%YoY. FFC is trading at attractive CY13F P/E of 6.8x and dividend yield of 14.8%, offering a significant upside of 16% to AKD Securities’ TP of PKR 133/share.

Standard Chartered reaffirms commitment to support commercial business in Pakistan

Karachi, October 17, 2012 (PPI-OT): In reaffirming its commitment to support commercial business in Pakistan while further reinforcing its brand promise here for good, Standard Chartered Bank recently welcomed its Global Head of Small and Medium Enterprise Banking (SME) Tim Hinton for a two-day visit to Karachi.

Tim’s visit signals the country’s importance as one of the Bank’s growing commercial and SME markets across its footprint in Asia, Africa and the Middle East.

“The SME segment has grown at almost twice the rate of Gross Domestic Product in most markets and is expected to grow at 10-12 percent per year across our footprint.. Our ambition is to be the leading international bank for SMEs, building the segment into a multi-billion dollar business over the next three to four years,” he said.

With more than 3.2 million SMEs in Pakistan, growing business in this segment is key to the Bank’s growth aspirations.

“With our needs based approach and strong capabilities, we are well positioned to help our SME customers capture business opportunities and expand across markets. This is timely in view of the government’s rising interest in spurring the development of a more diverse, competitive and high-growth SME sector.”

In demonstrating its commitment, Standard Chartered in June became the first international bank to launch the country’s first SME Centre to provide easy access and dedicated service to power the growth aspiration of the SME sector. The Bank looks set to establish 20 Trade Centres across the country by early next year.

In line with the Bank’s strategy of deepening customer relationships, each customer will be serviced by a team of specialists, delivering holistic solutions for SMEs addressing working capital and business expansion requirements, business protection yield enhancement and Shariah compliant Saadiq Trade and Lending Services.

Standard Chartered has been operating in Pakistan since 1863 and has the largest branch network among international banks. With 131 branches in 29 cities and more than 180 ATMs and CDMs, the bank is ideally positioned to service its clients in the country.

For more information, contact:
Standard Chartered Bank (Pakistan) Limited
1st Floor, New Jubilee Insurance Building,
I.I.Chundrigar Road,
P.O.Box 5556, Karachi.
Fax: 0092-21-38140902
Email: ask.us@sc.com

Pakistan Association of Automotive Parts and Accessories Manufacturers ask government to install radiation testing equipments at ports to ensure radiation-free vehicles import

Karachi, October 17, 2012 (PPI-OT): Worried by rise in shipments of radioactive used cars from Japan to a number of countries, Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has asked the government to install radiation testing equipments at ports to ensure radiation-free vehicles import into Pakistan.

“More and more products with dangerously high levels of radiation are being shipped to several ill-regulated markets, including Pakistan. This is especially the case with used vehicles, which are hardly subjected to the same level of safety testing as brand new vehicles, prior to shipment,” PAAPAM Chairman Munir Bana said. “In Chile, port workers and custom agents staged a protest, pressing their government to destroy imported vehicles found with traces of radiation.”

He said that Russian government has so far denied entry to about 300 cars proven to come from the nuclear explosion district and found with very high levels of radiation. Quoting reports, Mr Bana said that fraudulent Japanese used-car dealers were selling vehicles “exposed to dangerously high levels of radiation to unsuspecting buyers.”

He said that car dealers who often export used vehicles to Russia and Southeast Asia are having shipments to those countries refused because of high radiation levels. Customs authorities in Russia have turned away hundreds of vehicles that were shipped to their country by Japanese used car dealers, he added.

“I am sure all these cars will be shipped to Pakistan as no one will check them here and people will buy them with their eyes closed”, he pointed out.

Chairman PAAPAM said that the local industry has been asked to upgrade to EURO II emission standards on the one hand but five to seven years old vehicles are being freely imported and no checks have been carried out on their emission or safety standards.

Bana observed that majority of the vehicles are not in the ownership of overseas Pakistanis and these are just being picked up and reconditioned in lots from scrap yards, which had accumulated thousands of tsunami water damaged vehicles. These vehicles are being given almost free of cost as the Japanese government wants to get rid of this junk, he added.

PAAPAM Vice Chairman Usman Malik observed that Japanese used car dealers who can’t export radioactive cars overseas are dumping them into the Japanese used car market. These cars have failed Japan’s dockside radioactive export tests.

“If a car gives off a high radioactivity count, it’s too much trouble to decontaminate it. It’s better to just sell it in a Japanese car auction where there are no restrictions.”

He said that even the governments of Kenya and Tanzania, who unable to afford the high cost of testing all incoming vehicles, have also banned the import of cars from Japan into their markets.

Moreover, Uganda National Bureau of Standards after random scientific tests as well as motor vehicle inspection records, reported that many used motor vehicles destined for export markets from Japan are contaminated with significantly high level of ionizing radiation, Usman added.

For more information, Contact:
Chairman
Syed Nabeel Hashmi
Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM)
16-B, Westwood Colony, Thokar Niaz Baig, Lahore
Tel # +92 42 37498474-5
Fax #+92 42 37498476
Cell: +92 333 4372500
E-mail: paapam@brain.net.pk; chairman@paapam.com

Incubator Programme Funded by National ICT R and D Fund PSEB launched

Lahore, October 17, 2012 (PPI-OT): Incubator Program Funded by the National ICT R and D Fund PSEB, Government of Pakistan

PSEB in collaboration with the National ICT R and D Fund has launched program titled “PSEB’s incubator program”.

Project Objectives:

Creating jobs and wealth

Fostering a community’s entrepreneurial climate

Encouraging entrepreneurship

Technology commercialization etc.

For details regarding this program please visit

http://www.pseb.org.pk/pseb-programs/incubators-program.html

How to Apply:-

The interested students/practicing IT professionals must fulfill the following selection criteria:

1- Write a proposal outlining your idea and attach it with the application form and send these documents at incubator@pseb.org.pk

2- Attach detailed resume / CV of the applicant(s).

3- Interested candidates are allowed to submit their applications at incubator@pseb.org.pk by October 31, 2012.

4- Shortlisted participants will be contacted via e-mail on a rolling bases till the requisite number of teams are funded by the governing board.

What They will Provide:-

1- Space to hang out, that is office space with Internet connection, sever, desk, chair and a computer.

2- Seed capital Rs.500,000/- to buy a computer or other equipment.

3- Monthly stipend Rs.15,000/- to cover food and transportation; the rest is your sweat equity.

For more information, contact:
Virtual University of Pakistan (VU)
M.A. Jinnah Campus, Defence Road, Off Raiwind Road,
Lahore, Pakistan.
Phone: +9242 111 880 880
Fax: +9242 9920 0604 ; +9242 9920 2174
Web: http://www.vu.edu.pk/

Lahore Chamber of Commerce and Industry worried over Foreign Direct Investment outflows

Lahore, October 17, 2012 (PPI-OT): The Lahore Chamber of Commerce and Industry has appealed to the government to take note of constant decline in Foreign Direct Investment.

The LCCI President Farooq Iftikhar was reacting to the sharp decline in foreign investment that fell by 67 percent to $87 million during July-September 2012-13 against $263 million the same period last year.

He said that energy crisis, lack of transparency, law and order situation were the major factors keeping foreign investors away.

He said that increased risk factor about investing into Pakistan was hurting the entire economy and needed to be tackled through a methodical and visionary policy approach by involving major chambers of commerce of the country.

He feared the fall in Foreign Direct Investment (FDI) was likely to affect adversely the country’s economic growth therefore the government should adopt remedial measures to reverse this trend.

The LCCI President said that foreign direct investment is one of the fastest and most successful ways for poor nations to develop and increase their per capita income. He said that FDI also provides foreign capital and funds besides enhancement in skills, technology and create more job opportunities.

The lethargic government response to deal with aggravating energy crisis was also affecting adversely the local investment scenario besides sending negative signal to potential foreign investors.

The LCCI President said that a special committee comprising members of the Parliament, presidents of chambers of commerce and industry and representatives of other trade and industrial associations should be formed to identify ways and means to attract foreign investment that was a prerequisite to economic growth.

He said the proposed committee should also be tasked to look into the existing policy framework and if there was a need to redesign them.

He said key issues including power shortage, poor infrastructure, law and order situation and other vital factors, should be addressed on priority basis to improve the bleak foreign investment condition to put the country on track of economic growth and development.

Government should ensure all institutions to remain immune to any undue interference as this would help improve quality of governance without which foreign investment could not be attracted.

A number of sectors in Pakistan including infrastructure development, coal, energy, agriculture, livestock, textiles and pharmaceutical offer huge investment opportunities to foreign investors but unfortunately due to absence of proper marketing strategy, law and order, lack of transparency, these opportunities are not attracting foreign investment despite being lucrative , he added.

For more information, contact:
Shahid Khalil
Information Department
Lahore Chamber of Commerce and Industry (LCCI)
11-Shahrah-e-Aiwan-e-Tijarat,
Lahore -54000, Pakistan
Tel: +9242 111 222 499
Fax: +92 42 636 8854

Jordanian Envoy interest to expand Trade Relations with Pakistan

Islamabad, October 17, 2012 (PPI-OT): Pakistan and Jordan are enjoying historical good ties and we are very keen to further expand and deepen trade and economic relations with Pakistan.

This was said by H.E.Mr.Nawaf Saraireh, Ambassador of Jordan during his visit to ICCI office for congratulating Mr.Zafar Bakhtawari on his appointment as President of Islamabad Chamber.

He said that Pakistani rice, furniture, handicrafts, carpets, surgical equipment, leather, pharmaceutical products, garments and many other items are very popular in Jordan. Ambassador said that Jordan was importing cotton and meat from Syria and Egypt but they were not cost-effective, therefore, Jordanian Government have planned to import these products from Pakistan as they have very good demand in Jordanian markets due to their good quality and cost effectiveness.

H.E.Mr.Nawaf Saraireh said that Pakistani counterparts should also participate in the exhibitions held in Jordan which provide an opportunity to showcase their quality products and services. He also assured that all the chambers of commerce in Jordan would be informed about the industrial expo which will be organized by ICCI so that Jordanian businessmen could actively participate in that event.

In his welcome address, Zafar Bakhtawari, President ICCI lauded the role of Jordanian Ambassador in promoting good relations between the two countries and said that said bilateral trade between the two countries is much below than their true potential and frequent exchange of trade delegations should be encouraged to tap the untapped bilateral trade potential.

He said that Jordan has duty free access to US and European markets, therefore, Pakistani businessmen could earn huge returns by promoting trade with Jordan.

Mr.Bakhtawari was of the view that it is encouraging that Pakistan and Jordan are now moving forward to further strengthen their bilateral economic and trade relations as both countries have great potential to enhance mutual cooperation in various sectors of their economies.

ICCI President said that both countries have huge potential to complement each other in different areas including science and technology, fertilizer, IT and telecommunication, industry, banking and finance, health and pharmaceuticals, agriculture, livestock, fisheries, education and culture.

Mr.Bakhtawari highlighted the deep-rooted historical ties between Pakistan and Jordan as Princess Sarwat played a vital role to create bridge between the two countries. He also invited Her Majesty Queen Rania to visit Pakistan to mobilize the women entrepreneurship for the welfare and betterment of the women segment in Pakistan.

For more information, contact:
Islamabad Chamber of Commerce and Industry
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1,
Islamabad, Pakistan
Tel: +9251 225 0526 and 225 3145
Fax: +9251 225 2950
Email: icci@brain.net.pk
Website: www.icci.com.pk

Message of Prime Minister on international day for eradication of poverty

Islamabad, October 17, 2012 (PPI-OT): Pakistan joins the world community in observing the International Day for the Eradication of Poverty today. The day reminds us of the imperative of eradicating poverty and destitution through equitable economic growth, creation of employment opportunities and sustainable socio-economic development.

This year’s theme “Working together out of poverty” represents a call for formation of alliances and partnerships among different regional economic blocs and between the developed and the developing world to take on poverty. The resolve of the world leaders at the Millennium Summit to reduce the number of the poorest of the poor by half by 2015 was reflective of the same spirit of oneness.

The concept of poverty has taken broader connotations in recent years. Poverty has manifestations in lack of asset ownership, unsustainable livelihoods, social exclusion, limited or no access to social services, and vulnerability to shocks.

In this context, the problem of poverty can be addressed more appropriately by adopting a holistic approach i.e. making growth pro-poor, creating opportunities for employment and income generation, providing access to basic social services, food and financial resources, improving governance, making devolution work for those at the grass root and protecting vulnerable.

Economic growth in itself, is though necessary but not sufficient for substantial reduction in poverty. Experiences of Pakistan and many other countries show that periods of high growth do not tend to produce the desired outcomes with regard to poverty reduction.

The challenge is to make growth inclusive by providing resources for better service delivery (education, health sanitation, and housing) particularly for those in lower income groups, and targeted programs for the benefit of the poor.

Small and Medium Enterprises (SMEs) are considered an important tool for poverty alleviation, human resource development and employment generation. In order to enhance the productivity and exports of the SME sector, Framework for Economic Growth of the Government stresses upon strategic shift of government’s assistance to infrastructural development and establishing common facility centres.

These projects not only provide technical support to SMEs but also play an important role in poverty alleviation by generating direct and indirect employment in their respective areas. Under PSDP, SMEDA is implementing 28 projects worth Rs 2.8 billion which are expected to have positive impact on development and prosperity and will result in enhancing the standard of living and human resource development. ‘Early Recovery and Restoration of Flood Affected Communities in Pakistan’ project of SMEDA, being implemented in collaboration with UNDP (est. cost Rs 256 million) entails establishment and operation of Business Support Centers in 29 districts severely affected by the floods. The aim is to provide communities support for economic development through extending small grants.

During July 2011-March 2012, Pakistan Poverty Alleviation Fund (PPAF) disbursed funds in urban and rural areas of 129 districts of the country to about 297,000 community organizations through 112 partner organizations of which 12 were focusing exclusively or predominantly on women.

These interventions have resulted in completion of 27,417 projects in infrastructure, health and education sector and training of more than 488 thousand community members. In earthquake affected areas, PPAF provided financing to 122 thousand households to build earthquake resistant homes and trained over 108 thousand individuals in seismic construction and related skills.

The microfinance industry broadly provides services in three categories viz. micro-credit, micro-savings and micro-insurance. The number of borrowers during Jul-Dec 2011 was 2.1 million. Outreach growth was limited to 0.7% in 2011 compared to 13% growth during 2010, primarily due to limited availability of funding due to 2010 and 2011 floods.

Benazir Income Support Program (BISP) was established by the democratic Government in July 2008 with the primary objective of providing immediate relief to the poor enabling them to absorb the shock of rising prices of food and fuel. Within a short span, BISP has made remarkable progress by providing much needed relief to over 4 million recipients including IDPs, flood affectees and bomb blast victims all across Pakistan.

BISP has disbursed an amount of Rs 108 billion to its recipients till March 2012. The number of recipients is expected to increase to 7 million once the on-going processing of data collected during the nation-wide poverty scorecard targeting survey is completed.

Pakistan Bait-ul-Mal (PBM) interventions focuses on providing assistance to destitute, widow, orphan, invalid, infirm and other needy persons. An amount of Rs 674.4 million has been disbursed for benefiting 11,988 individuals countrywide during 20011-12. An amount of Rs 261 million have been spent during the first three quarters of 2011-12.

Zakat plays an important role in poverty alleviation. Zakat funds are utilized for assistance to the needy, indigent, poor, orphans, widows, handicapped and disabled for their subsistence or rehabilitation. These poor segments of society were provided Zakat funds either directly or indirectly. A total amount of Rs 3,669 million was distributed in bulk amongst the federating units.

Employees’ Old-Age Benefits Scheme has been established primarily to provide subsistence pension and other benefits. During 2011-12, EOBI has disbursed Rs 11.7 billion to some 358,800 beneficiaries while, next year disbursement is expected to be Rs 14.9 billion.

The pro-poor budgetary expenditures during 2011-12 (by Federal and Provincial Governments) stood at Rs 1,295 billion (July 2011 – March 12). In the next year 2012-13, it is projected to rise at Rs 1,615 billion, 8.1% of GDP in 2012-13.

These steps of the democratic government show that we are alive to the magnitude of the challenge. Fighting poverty is a national challenge warranting partnership approach on the part of all stakeholders. On the International Day for the Eradication of Poverty, let us resolve to double our efforts to alleviate poverty, a major impediment in development of the country.

For more information, contact:
Haji Ahmed Malik
Principal Information Officer
Press Information Department (PID)
Tel: +9251 925 2323 and +9251 925 2324
Fax: +9251 925 2325 and +9251 925 2326
Email: piopid@gmail.com