UNDERSTANDING THE LENDING ENVIRONMENT OF BANKS
ISSUE # 21 -----
May 20 - May 26, 2013
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Despite the challenges and borrowings from the Central Bank to meet budgetary deficits, loans to the private sector have increased. Since July 2012 to date, loans increased by Rs173 billion as compared to Rs56.8 billion during the same period last year. Advances to large scale manufactures increased 2.9 percent, which is low but encouraging. SBP since the beginning of FY12 has consistently reduced the discount rate, cumulative decline to date being 450 bps. Reduction in interest rate alone has assisted credit off take. SBP in light of lowering of inflation has given an incentive to the economy to boost the private sector through expansion of credit with hopes to increase production and GDP growth.......

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PAGE TOP STORIES

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EXCLUSIVE INTERVIEWS
& PAGE SPECIAL REPORTS

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INTERVIEW WITH DR ABDUL WAHAB, VICE CHANCELLOR, MOHAMMAD ALI JINNAH UNIVERSITY

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At present Professor Dr. Abdul Wahab is Vice Chancellor of Mohammad Ali Jinnah University (MAJU). For his meritorious service in the field of education he has been conferred ‘Order of The Rising Sun’ award, the second highest, by the Emperor and Prime Minister of Japan. He has also been conferred ‘Sitara-e-Imtiaz’ by the Government of Pakistan. Prior to joining MAJU he held positions of Vice Chancellor, University of Karachi and Director, Institute of Business Administration (IBA). He is known for administering the educational institutions with an ‘iron hand’, maintaining highest discipline and keeping these institutions open while almost the entire country face closure due to one or the other reason....

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INTERVIEW WITH MR MUHAMMAD HAROON AGAR, PRESIDENT KARACHI CHAMBER OF COMMERCE & INDUSTRY (KCCI)
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A growing and dynamic banking sector is essential for the country’s economic growth. The banks have shifted their focus towards safer investment options like placements in government securities, which has deprived the private sector from availing credit which is so necessary for sustainable development of the economy. Furthermore, Shariah compliant financial products and Islamic banking is a relatively newer concept in Pakistan which has attained quick acceptability in the public and needs to be further developed to cater to corporate and retail requirements....

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PAKISTAN
EXPORTS & IMPORTS

(US Million $)
PERIOD EXPORTS IMPORTS
2009 - 11 25,355 35,872
2010 - 12 24,696 40,461
Jul-12 P 2,0024 3,430
Aug-12 P 2,025 3,222
Sep-12 R 1,935 3,006
Oct-12 P 2,213 3,624
Nov-12 P 1,995 3,335
Dec-12 P 1,819 3,046
Jan-13 R 2,116 3,398
Feb-13 P 1,920 3,156
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PREVIOUS ISSUES

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PAKISTAN WEATHER
3 DAYS FORECAST

  MIN MAX HUM% FORECAST.
KARACHI
TODAY 28 34 36 cloudy
TOMORROW 28 34 36 cloudy
DAY AFTER 28 34 36 sunny
LAHORE
TODAY 29 47 44 sunny
TOMORROW 27 46 44 sunny
DAY AFTER 29 46 44 sunny
ISLAMABAD
TODAY 26 43 39 windy
TOMORROW 26 43 39 sunny
DAY AFTER 26 43 39 windy

updated: Fri - Sun, May 19th - 21st, 2013

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COVER STORY

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NEGLECTING HUGE EXPORT POTENTIAL OF PHARMA INDUSTRY
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Syed Nadeem Ahmed, Managing Director of Searle Pakistan Limited, a globally recognized brand for producing quality drugs said in an exclusive interview that that actual strength of the pharmaceutical industry is not translated so far in spite of having a potential to hit $5 billion exports for the country. Syed Nadeem Ahmed carries an extensive exposure and experience spanning over 24 years in the pharmaceutical operations to his professional credit. Initially, he started his career as GM Marketing with Boots and later on joined Martin Dow as Director Marketing where he gained multiple experiences in all the segments of the pharmaceutical business.

Prior to his joining Searle, he was working as the Chief Operating Officer in the said company......

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TELECOM
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CELLULAR TECHNOLOGY HOLDS THE KEY TO DEVELOPMENT AND GROWTH OF THE ECONOMY
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Warid Telecom is a 100 percent owned company of the Abu Dhabi Group and offers state-of-the-art telecommunication services at over 7,000 destinations in Pakistan. It launched its cellular services in Pakistan in May 2005. As an organization, Warid Telecom prides itself in being contemporary, approachable and constantly innovating. With achievements ranging from having one of the largest postpaid bases, most loved youth and prepaid brands, international roaming and nationwide coverage, Warid Telecom's selection of value added services makes communication effective and enjoyable...

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AGRICULTURE
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WATER IS THE KEY TO DEVELOP AGRICULTURE IN BALOCHISTAN
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The new elected government after May 11 polls in Balochistan needs to focus on development of water resources, which is the key to maximize crop production in a water-starved province. This can be done through increasing surface water supplies and conserving water using the latest technologies and protecting land and infrastructure from water logging, salinity, floods and soil erosion. There is a dire need to overcome the scarcity of water through construction of medium and large dams and efficient utilization of irrigation water and restoring the productivity of agricultural land through control of water logging, salinity and floods.......

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COVER STORIES
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SHIPPING
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Ship owners of clean product tankers have much to cheer for as of late, since most of rates on clean product routes, are at least trading at viable levels, despite the general low season that the tanker market is traditionally going through this time of year. According to the latest weekly report from shipbroker Intermodal, "most of the clean product routes for MR and LR vessels have shown a continuous growth on the average TCE rate.........

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ENERGY
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The elected government may take some difficult and crucial decisions, which in the short term, may prove unpopular and may cause hardship to the common man. The government will have to take some difficult decisions to reduce fiscal deficit and at the same time it will need to improve tax collection as well as increase the tax base.......

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RESEARCH CORNER

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Faysal Bank Limited (FBL) is engaged in corporate, commercial, retail and Islamic banking activities. FBL's aims to grow the Islamic balance sheet and profitability to provide sound footing for future expansion and growth. During 1st Quarter 2013, Barkat Islamic banking team launched computer-based training program on basic Islamic banking to provide training across the board.......

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PAGE REPORT
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MOBILINK INTRODUCES THE NEW BLACKBERRY
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Mobilink has introduced the new BlackBerry® Q10 to the Pakistani consumers with an aggressive price of PKR 70,000 only. The phone offers users a powerful and unique newmobile computing experience with state-of-the-art Blackberry enterprise and internet services from Mobilink.....

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CAPITAL MARKETS

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INDIA IN THE NEWS

NEW DELHI: Foreign investment inflows into the country topped $50 billion on a net basis during 2012-13 despite the government's efforts to woo foreign direct investment (FDI) yielding poor results. But what came as a bigger surprise was a sharp decline in India Inc's overseas forays, at least on the FDI front, despite several corporate chiefs threatening to pull out of the country in the wake of poor sentiments....

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IN THE NEWS

The country's liquid foreign exchange reserves were declined by $262 million during last week because of debt payment to the IMF. Pakistan paid an amount of some $143 million to the IMF on account of 13th installment of Stand-By Arrangement on May 10, 2013. The State Bank of Pakistan on Thursday reported that the country's total forex reserves declined to $11.601 billion as on May 10, 2013.....

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GULF NEWS

Opening the third and concluding day of the 2013 WCO IT Conference and Exhibition, hosted by Dubai Customs under the patronage of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, Dr Anwar Mohammed Gargash, Minister of State for Foreign Affairs, reiterated that the global event represents a good opportunity for coordination and cooperation between customs and border authorities around the world to facilitate trade and ensure the protection of economies and societies.....

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ANNOUNCEMENT

UBL Funds, under its Smart Investment Plans' umbrella has launched the UBL Wealth Builder Plan. The Wealth Builder is designed keeping in mind the need of investors for a lump sum and/or regular contribution plan that builds over time and is ideal for those who are not investment savvy but still want to capitalize on attractive returns......

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WEEKLY COMMODITY RATES (US$)

  PRICES
THIS WEEK
PRICES
LAST WEEK
%CHG
CRUDE OIL 103.8 104.04 -0.23
HEATING OIL 290.89 291.43 -0.19
COTTON 85.89 87.52 -1.86
SUGAR #11 16.95 17.47 -2.98
COPPER 331.5 332.4 -0.27
GOLD 1,374.10 1,471.20 -6.60
SILVER 22.43 24.03 -6.66
COCOA 2,290.00 2,391.00 -4.22
CORN 644 631 2.06
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ELECTIONS
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POLL RESULTS LED TO NEW HOPES AND ASPIRATIONS FOR THE NATION
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Elections 2013 held on May 11 have been generally described as a victory for democracy both by the international and national observers. Lauding Pakistan's commitment to poll process at a press conference last Monday, the European Union Election Observer Mission, which stayed in Pakistan for about three weeks and widely traveled throughout the country, appreciated the strong commitment shown by the political parties, candidates and the voters despite threats and militant attacks in some parts of the country. The Mission released its preliminary observations report which, while commending the overall performance also pointed out some gaps and shortcomings marred the process in some areas.....

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THIS WEEK TOP STORIES
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U.S.-FUNDED DAIRY PROJECT BOOSTS RURAL ECONOMY OF PAKISTAN (BUSINESS RECORDER)
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KUWAIT AIRWAYS TO BUY 25 NEW AIRCRAFT  (GULF NEWS)
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TOYOTA BECOMES ASIA'S BIGGEST FIRM BY MARKET VALUE (DAWN NEWS)
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DUBAI LOOKS TO BOOST FOREIGN DIRECT INVESTMENT (GULF NEWS)
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LLOYDS SHARE RISE ABOVE 'BREAK-EVEN' PRICE (THE TELEGRAPH)
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DELL POSTS 79% FALL IN PROFITS AMID TAKEOVER BATTLE (BBC NEWS)
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PAKISTAN APPROVES 100,000 TONNES OF WHEAT FOR IRAN TO PAY FOR POWER (DAWN NEWS)
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EXCHANGE RATES

BUYING SELLING
US $ 99.55 99.85
UK POUNDS 152.8 154
KUWAITI DINAR 344.5 346
SAUDI RIYAL 26.5 26.75
UAE DIRHAM 27.1 27.35
CANADIAN DOLLAR 97.9 98.25
EURO 128 128.5
JAPANESE YEN 0.97 0.99

MORE RATES

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  3May13 9May13 17May13
NASDAQ 3,340.62 3,413.27 3,465.24
H.SENG 22,725.70 23,198.50 23,082.70
SENSEX 19,711.14 19,993.98 20,303.36
NIKKEI 13,694.00 14,191.50 15,138.10
CAC-40 3,858.76 3,956.28 3,984.44
DAX 7,961.71 8,249.71 8,363.56
FTSE 6,460.71 6,583.48 6,693.67
S&P 1,597.59 1,632.69 1,650.47
DJIA 14,831.60 15,105.10 15,233.20
BUSINESS QUOTATIONS
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"The banks do create money. They have been doing it for a long time, but they didn’t realise it, and they did not admit it. Very few did. You will find it in all sorts of documents, financial textbooks, etc. But in the intervening years, and we must be perfectly frank about these things, there has been a development of thought, until today I doubt very much whether you would get many prominent bankers to attempt to deny that banks create it."
H W WHITE
"Money is a new form of slavery, and distinguishable from the old simply by the fact that it is impersonal – that there is no human relation between master and slave."
LEO TOLSTOY
"The modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency."
MAJOR L L B ANGUS
"The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple the mind is repelled. With something so important, a deeper mystery seems only decent."
JOHN KENNETH GALBRAITH

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As On May 17, 2013

TENOR

BID

OFFER

1 Week

9.37 9.87

2 Week

9.29 9.79

1 Month

9.27 9.77

3 Month

9.31 9.56

6 Month

9.34 9.59

9 Month

9.38 9.88

1 Year

9.40 9.90

2 Year

9.81 10.31

3 Year

10.23 10.73

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SOCIETY
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LATE MARRIAGE: PROBLEM OF EDUCATED YOUTH
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Pakistan is facing a problem of late marriage in urban areas. As a result of being unemployed after higher education for a long duration our boys and girls are facing problem in getting suitable partners. Even the parents of their highly educated daughters find difficult to get a suitable match for their daughters......

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CURRENCY CONVERTER

EURO
US DOLLARS:
UK POUNDS:
Japanese YEN:
SAUDI RIYAL:
UAE DIRHAM:
KUWAITI DINAR:
CANADIAN DOLLARS:
PAKISTANI RUPEES:


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HEALTH

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NEW GLOBAL STUDY PINPOINTS MAIN CAUSES OF CHILDHOOD DIARRHEAL DISEASES, SUGGESTS EFFECTIVE SOLUTIONS
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A new international study published in The Lancet provides the clearest picture yet of the impact and most common causes of diarrheal diseases, the second leading killer of young children globally, after pneumonia.
The Global Enteric Multicenter Study (GEMS) is the largest study ever conducted on diarrheal diseases in developing countries, enrolling more than 20,000 children from seven sites across Asia and Africa.......

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MY POLL

 
Will Pakistan’s economy improve after May 11?
 
 

 

Yes

No

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INTERESTING FACTS

1- The Statue of Liberty's index finger is eight feet long.               

2- Rain has never been recorded in some parts of the Atacama Desert in Chile.                              

3- A 75 year old person will have slept about 23 years.                     

4- Boeing 747's wing span is longer than the Wright brother's first flight. The Wright brother's invented the airplane.                 

5- There are as many chickens on earth as there are humans.          

6- One type of hummingbird weighs less than a penny.            

7- The word "set" has the most number of definitions in the English language; 192 Slugs have four noses.                                    

8- Sharks can live up to 100 years.

9- Mosquitos are more attracted to the color blue than any other color.                                                

10- Kangaroos can't walk backwards.

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Last modified: Jan 15th , 2013