THRIVING FOOD BUSINESS IN KARACHI TAKES NEW HEIGHTS
ISSUE # 29 ----- Ju
ly 21 - July 27, 2014

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Pakistan is a land, which is having rugged terrain and mountains in the north, plains and fields in the South. Pakistan is considered an agricultural community, which keeps the country self-sufficient with its food requirement. Since there have hardly been any investments to promote recreational activities such as water parks, amusement parks, Safari’s, water sports, race tracks, gymnastics etc the only source of entertainment for the people is food. With population of over 180 million people, the food business is considered one of the most lucrative. The food business is also a high risk high return game. If the business grows, there is no turning back. However, if food quality and taste does not appeal to the people, the business will see demise at an early stage.........
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PAGE TOP STORIES

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EXCLUSIVE INTERVIEWS
& PAGE SPECIAL REPORTS

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NATIONAL FOODS MAIN CONCERNS: HEALTH, SAFETY AND COMMUNITY RESPONSIBILITY
INTERVIEW WITH MR ABRAR HASAN, CEO, NATIONAL FOODS LIMITED

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National Foods began its journey in 1970 as a spice company, with a revolutionary product that popularized the concept of having clean, healthy food. National Foods initiatives were, to make food that is hygienic, reduce time spent in the kitchen by women, foster health and contribute towards personal attractiveness, so that people who use our products would be able to experience a more rewarding life-style. This was long before the phrase ‘Corporate Mission’ had even been invented. However, our  founder’s philosophy remains unchanged over time. Even if their language – and the notion of only women doing the housework – have become outdated, in this age of rapidly changing lifestyles, fuelled by the rampant development of technology; consumers are compelled to alter their eating habits........

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THRIVING FOOD BUSINESS IN KARACHI TAKES NEW HEIGHTS

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With population of over 180 million people, the food business is considered one of the most lucrative. The food business is also a high risk high return game. If the business grows, there is no turning back. However, if food quality and taste does not appeal to the people, the business will see demise at an early stage. Looking at the opportunities in Pakistan, investors have brought in many international food chains to Pakistan, more recently Johnny Rockets, Burger King, TCBY, Fat Burger, TGIF. Burger King and Pizza Hut have opened first ever chains in Quetta, which are the first international chains having presence in the province........

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OIL PRICES
OIL WEEKLY BASKET PRICE

 (US Million $)
PERIOD PER BARRELS
April 25, 2014 105.22
May 2, 2014 104.47
May 9, 2014 104.02
May 16, 2014 105.19
May 23, 2014 106.67
May 30, 2014 106.45
June 6, 2014 105.28
June 11, 2014 105.72
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PREVIOUS ISSUES

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PAKISTAN WEATHER
3 DAYS FORECAST

  MIN MAX HUM% FORECAST.
KARACHI
TODAY 27 34 69 cloudy
TOMORROW 27 34 70 cloudy
DAY AFTER 27 34 70 cloudy
LAHORE
TODAY 27 36 66 sunny
TOMORROW 28 37 63 sunny
DAY AFTER 28 36 63 sunny
ISLAMABAD
TODAY 25 36 62 sunny
TOMORROW 26 35 57 sunny
DAY AFTER 26 34 65 cloudy

updated: Sun - Tue, July 20 - 22, 2014

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COVER STORY
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FINANCIAL INCLUSION PROGRAM AND FARMERS
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Agriculture contributes nearly one-fourth to Pakistan’s GDP, two of its large-scale industries (textile and sugar) are agro based and nearly 60 percent of total exports comprise of textiles and clothing. This is despite the fact that production and productivity of the sector is very low as compared to the international standards. If right impetus are provided production of major crops can be doubled, which can boost GDP size, create new employment and above all help in earning much needed foreign exchange that can reduce reliance on multilateral donors.......

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COVER STORY
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SBP KEEPS INTEREST RATE UNCHANGED FOR NEXT TWO MONTHS
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Governor SBP, Mr. Ashraf Mahmood Wathra while unveiling the Monetary Policy Statement (MPS) for the next two months said that the decision was taken during a meeting of the Central Board of Directors of SBP held under his chairmanship in Karachi Saturday last. According to Mr. Wathra, economic conditions are certainly better at the beginning of Financial Year 2015 than a year ago but a detailed assessment of the economy indicates that challenges and vulnerabilities still remain to be tackled.

Continuation of prudent policies and reforms are needed to build on positive developments and to achieve protracted stability. Governor SBP stated that SBP is effectively managing market sentiments by supplementing the monetary policy stance with calibrated liquidity operations in the inter-bank market, adding that "this has contributed in achieving stability in the foreign exchange market and in building foreign exchange reserves."......................

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COVER STORY
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GOAL SET TO MAKE SUSTAINABLE, PROFITABLE AGRICULTURE SECTOR
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Agriculture constitutes as the largest sector of our economy. Majority of the population, directly or indirectly dependent on this sector. It contributes about 24-percent of Gross Domestic Product (GDP) and accounts for half of employed labor force and is the largest source of foreign exchange earnings. It feeds whole rural and urban population.

 

Realizing its importance, planners and policy makers are always keen to have reliable area and production statistics of agricultural crops well in time. Policy makers primarily need accurate and timely statistics for the important crops such as wheat, cotton, rice, sugarcane, maize etc. However, in recent years, due to persistent hikes in the prices of essential commodities like pulses, onions, potatoes, chilies and tomatoes these crops have also gained in economic importance...............

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COVER STORY
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MOLASSES PRODUCTION, EXPORTS ON THE RISE
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Molasses is an offshoot of the sugar refining industry. Its universal availability mostly depends on the production of sugar out of sugarcane and sugar beets. Sugarcane is vastly grown in tropical or sub-tropical regions like Asia, Central and South America, Africa and Australia. Sugar beets are cultivated mainly in the northern hemisphere and come from more temperate crops in Europe, North America, partly Northern Africa as well as Northern China and Japan.

About 80 percent of the sugar is produced from sugarcane. Globally more than 50 million tons of molasses are produced out of which only around 7 million tons are traded.......

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COVER STORIES
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SHIPPING
NEWS

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NEW OCEAN SERVICE FROM ASIA TO PORT OF TYNE
Wallenius Wilhelmsen Logistics (WWL), the global RoRo shipping and factory-to-dealer logistics specialist has recently completed a shipment from Asia to the Port of Tyne near Newcastle in North East England, United Kingdom.
Steven Harrison, Port of Tyne Chief Operating officer, said: "This has been introduced to meet the demands of plant and heavy equipment manufacturers who wish to move their cargo via the Port and brings added connectivity to the Port of Tyne with a new RoRo service to our portfolio. In addition, it shows future possibilities of WWL providing flexibility and solutions for companies wishing to trade directly from the North East to various overseas markets. ".
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COVER STORY
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ACHIEVING FOOD SECURITY
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No one can deny the importance of food security in the present time. This can be achieved by following two pronged strategy, containing wastages and boosting yield. Though, all the successive governments of Pakistan talked about the importance of agriculture and need for enhancing lending to farmers, lack of coordinated efforts never allowed exploitation of the real potential of the country. This becomes all the more pinching because feudal lords enjoy majority in legislative, have the capacity to influence policy making process and above all bulk of their income comes from agriculture/agro-based industries......

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COVER STORY
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MAKING LIVESTOCK MODERN IN BALOCHISTAN
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The livestock farmers are mainly the small and landless farmers, who are living in miserable socio-economic conditions in the province. They lack land and water for fodder cultivation and animals. Livestock is dependant upon grazing in rangelands, which make 40 percent of the total landmass in the province. Environmental Profile Balochistan has defined Range as self-generating and self-maintaining vegetation used for livestock grazing. The range supplies the bulk of forage and fuel wood in the province. The rangelands not only serve as habitats for most of the wildlife, but the small stocks almost completely depend on rangelands for their food........

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RESEARCH CORNER

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DIRE NEED TO IMPORT UREA FERTILIZER FROM NEIGHBORS

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The Ministry of Industries and Production has proposed timely import of urea fertilizer in order to avoid scarcity, which leads to abrupt surge in its rates in the domestic market. The ministry has also proposed import of 0.7 million metric tons urea for Kharif season, which will load the state exchequer by approximately $280 million. Kharif-2013 began with inventory of 220,000 tons of urea. Total availability of urea was almost 3041,000 tons against the offtake of 2851,000 tons, leaving an inventory of 175,000 tons for Rabi FY14.........

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CAPITAL MARKETS
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COVER STORY
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FOOD INSECURITY A SERIOUS THREAT, NEED FULL-FLEDGED ACTION PLAN
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The term food insecurity represents hunger and malnutrition. Pakistan suffers more from malnutrition than from hunger; although hunger has been rising over the past twenty years. Food security in Pakistan is pathetic despite the fact that farmers are producing more and more products, especially wheat for most of the period. The masses are still suffering shortage and unabated price hike and the food security issue is getting worse to worst day-by-day. The middlemen, smuggling mafia and official network of some relevant departments are responsible for this state of affair...........

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COVER STORY
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COUNTRY'S OVERALL RICE INDUSTRY HAS SHOWN A HANDSOME GAIN
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Pakistan being an agro-based economy has natural abundance of all agricultural products including food items. Rice is the third largest crop after wheat and cotton. It is grown over 10% of the total cropped area. It is highly valued cash crop and is also major export item. It accounts for 6.7 percent in value added in agriculture and 1.6 percent in GDP. Pakistan grows enough high quality rice to meet both domestic demand and allow for exports of around one million ton per annum.............

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INDIA IN THE NEWS

NEW DELHI: The government is working on a national food grid, connecting deficient areas with producing regions, as part of a plan to reduce wastage of fruits and vegetables while ensuring stable prices that can help tame stubborn food inflation, food processing industries minister Harsimrat Kaur Badal has said. As part of the plan, the government is developing a food mapand a national cold chain grid. The plan is expected to be put for approval to Prime Minister Narendra Modi before being formally announced.........

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IN THE NEWS

During FY14, the overall performance of agriculture sector registered a growth of 2.1 percent because of o positive growth in agriculture related sub sectors, Kamal Hayder, research analyst-PAGE said. Crops grew at 1.2 percent, Livestock 2.9 percent, Forestry 1.5 percent and Fishing 1.0 percent. The agriculture’s crop subsector component which includes significant crops increased by 3.7 percent while other crops and cotton ginning showed a negative growth of 3.5 percent and 1.3 percent, respectively..........

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GULF NEWS

Dubai: Etihad Airways’ new Dh10.8 billion home at Abu Dhabi International, scheduled to open three years from today on July 17, 2017, will be key to the airlines growth. "A key calling card of the Gulf carriers is service quality so its imperative for Etihad to have state of the art facilities to keep up with Emirates and Qatar [Airways]," John Strickland, Director of JLS Consulting told Gulf News in an email.
The Midfield Terminal, approved for construction by the Abu Dhabi government in 2012, will be operational several years after neighbouring Dubai and Qatar opened their new airports...
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ANNOUNCEMENT

Islamic Finance has grown significantly over the years in every corner of the globe. Where, globally the value of Islamic financial assets has increased from $150 billion in the mid-1990s to about $1.72 trillion by end 2013. The main growth areas include Saudi Arabia, Qatar, Kuwait, Iran, Indonesia, Malaysia, UAE and Turkey. The growth is however not restricted to Muslim countries, as Islamic banking is gradually making inroads in the western markets and is complementing conventional financing. There is a large number of Islamic banks and growing interest of conventional banks to open up separate Islamic Windows........

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COVER STORY
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GOVT WORKING TOWARDS FOOD SECURITY ACROSS THE COUNTRY
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Agriculture and livestock sectors have a paramount role in ensuring food security for whole population of the province and to the country with the incumbent government of Punjab are expecting and likely to contribute towards food security measures for the whole of country as these sectors have immense economic potential for not only providing food and fiber besides being major source of foreign exchange for the country.
Livestock is a newly emerging economic sector with high potential in terms of economic returns, while the agriculture sector has over 23 percent share in the national GDP, of which livestock contributed 53 percent.
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EXCHANGE RATES
Pakistan Open Market Rates

BUYING SELLING
US $ 98.8 99.05
UK POUNDS 168.5 168.75
KUWAITI DINAR 349.75 350
SAUDI RIYAL 26.85 27.1
UAE DIRHAM 26.75 27
CANADIAN DOLLAR 91.6 91.85
EURO 133.55 133.8
JAPANESE YEN 0.98 0.99

MORE RATES

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COVER STORY
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COMMITMENT, PLEDGE TO THRIVE AGRICULTURE SECTOR
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The agriculture sector plays a vital role for the economic growth of Pakistan as it accounts for over 21 percent of contribution to the GDP of the country and stands as the second largest sector in the country. It employs 45 percent of the total labor force of the country where 62 percent of the population residing in the rural areas are somehow linked to this sector for their livelihood. The agriculture sector plays a dual role for the economy of Pakistan; it contributes to the exports of Pakistan by being a primary supplier of raw materials to the downstream industry and on the other hand, it is a large market for industrial products such as pesticides, fertilizers and agricultural machinery..........

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CAPITAL MARKETS
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STOCK MARKET ROUND UP
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Buoyed by the upgraded ratings outlook from Moody’s for foreign currency sovereign bonds and local banks (ratings outlook upgraded), along with World Bank appreciating prudent economic management alongside a reaffirmation of continued support, the KSE-100 Index gained 906 points, up 3.09%WoW during this past week to settle at 30,224 points, an all-time high. Top performers included HCAR, ICI, UBL and AKBL. On the flipside, laggards included KEL, AGTL, SSGC and LOTCHEM.........

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4July14 11July14 18July14
NASDAQ

4,485.92

4,396.20

4,363.45

H.SENG

23,526.68

23,233.45

23,454.79

SENSEX

25,728.34

24,997.78

25,641.56

NIKKEI

15,437.13

15,164.04

15,215.71

CAC-40

4,489.88

4,319.24

4,307.15

DAX

10,029.43

9,664.35

9,682.56

FTSE

6,865.21

6,684.30

6,707.11

S&P

1,985.44

1,964.68

1,958.12

DJIA

17,068.26

16,915.07

16,976.81

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As On July 18, 2014

TENOR

BID

OFFER

1 Week

9.01

9.51

2 Week

9.36

9.86

1 Month

9.60

10.10

3 Month

9.91

10.16

6 Month

9.92

10.17

9 Month

9.92

10.42

1 Year

9.94

10.44

2 Year

11.64

12.14

3 Year

11.96

12.46

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RESEARCH CORNER
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CONSUMPTION AND IMPORT DEMAND OF WHEAT STILL PERSIST

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Pakistan sustained the procurement rate for the present year’s wheat crop at the previous year’s level of Rs1,200/40 kg bag, in spite of farmers’ organizations demand for a rise. The upward trend in the wheat planting region registered a stay-put in the previous year while planting region rose by 2.0 percent in this year because of relatively well economic favorable and viability weather situations. Cumulative fertilizer nutrient offtake in Rabi FY14 was 1785,000 tons, rising by 20.0 percent against with similar schedule of previous Rabi season........

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BUSINESS QUOTATIONS
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The greatest advances of civilization, whether in architecture or painting, in science and literature, in industry or agriculture, have never come from centralized government.
MILTON FRIEDMAN
If you can't feed a hundred people, then feed just one.
MOTHER TERESA
The discovery of agriculture was the first big step toward a civilized life.
ARTHUR KEITH
Let's face it, a nice creamy chocolate cake does a lot for a lot of people; it does for me.
AUDREY HEPBURN
Agriculture not only gives riches to a nation, but the only riches she can call her own.
SAMUEL JOHNSON
There is no sincerer love than the love of food.
GEORGE BERNARD SHAW
True contentment is a thing as active as agriculture. It is the power of getting out of any situation all that there is in it. It is arduous and it is rare.
GILBERT K. CHESTERTON
If you really want to make a friend, go to someone's house and eat with him... the people who give you their food give you their heart.
CESAR CHAVEZ
Agriculture is now a motorized food industry, the same thing in its essence as the production of corpses in the gas chambers and the extermination camps, the same thing as blockades and the reduction of countries to famine, the same thing as the manufacture of hydrogen bombs.
MARTIN HEIDEGGER
If you really want to make a friend, go to someone's house and eat with him... the people who give you their food give you their heart.
CESAR CHAVEZ

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COVER STORY
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FERTILIZER SECTOR HAMPERED THROUGH GAS CURTAILMENT
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Pakistan has the fertilizer production capacity to meet the domestic requirement of farmers where the agriculture sector alone is 24 percent of GDP. It is a pity that fertilizer production is hampered through curtailment of gas despite Pakistan being the 7th largest fertilizer producer country in the world. Gas is curtailed to provide for needs of homes and other industrial units under pressure from the government.

The industry has invested over $2.5 billion in the sector since year 2007. There have been discussions and negotiations with the government to restore gas suppliers to the fertilizer sector, however, all efforts yielded partial results.........

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THIS WEEK TOP STORIES
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PETROLEUM MINISTRY RECOMMENDS SIGNIFICANT CUT IN LPG PRICES (DAWN NEWS)
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BRICS NATIONS TO CREATE $100BN DEVELOPMENT BANK (BBC NEWS)
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RISING CEMENT EXPORTS KEEP KSE IN GREEN ZONE (THE NATION)
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CHINESE INVESTORS READY TO BUILD 'INDUSTRIAL PARK' IN GWADAR (BUSINESS RECORDER)
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FAKE BRANDS WORTH DH34 MILLION SEIZED IN DUBAI (GULF NEWS)
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SIX CITIES TO HAVE COAL POWER PLANTS (DAWN NEWS)
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TEXTILE EXPORTS UP BY 3.9 PER CENT IN FY14 (THE NATION)
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PAGE REPORT
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ORACLE EXTENDS BIG DATA PORTFOLIO WITH ORACLE BIG DATA SQL
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Oracle has introduced Oracle Big Data SQL, an essential part of a big data management system that seamlessly integrates data across Hadoop, NoSQL, and Oracle Database specially designed to address organizations' need for comprehensive big data solutions,
Oracle Big Data SQL enables customers to gain a competitive advantage by making it easier to uncover insights faster, while protecting data security and enforcing governance. Furthermore, this approach enables organizations to leverage existing SQL investments in both people skills and applications.......

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