July 05 - 11,1999
Pakistan included in ARY
Renowned bullion dealers and jewellery manufacturers, ARY Jewellers has
announced the inclusion of Pakistan in the Dubai - based 'ARY Bullionaire Contest'
commencing from the August 1 to December 2, 1999. 28 kilos of gold in prizes will be given
out on a worldwide basis including a bumper prize of 20 kilos of gold, respectively.
Some 150 "ARY Privileged Outlets' (Jewellery Shops) all over the
country will be participating in the event, being organized for the first time in
On a purchase of any ARY "Rainbow" product or ARY gold bars
or in Pakistan on a purchase of Rs. 5000/- worth of gold jewelry from any participating
"Privileged Outlets", the customer will be entitled to a coupon. A lucky draw on
a worldwide basis will be held in Dubai every month and 20 prizes of 100 grams of gold
each will be given as prizes. The ARY Bullionaire Grand Draw will be held at the end of
the contest and the lucky winner will be entitled to a Bumper Prize of 20 kilos of gold.
The top ten jewelers of the ARY Bullionaire Contest in Pakistan with
the highest number of sales will also be awarded attractive prizes. The first prize of a
kilo of gold will go to the jeweler with the highest number of sales, the second prize
will be of l/2 kilo of gold and third to the tenth will be given 250 grams of gold,
"The ARY Bullionaire contest has previously been held in the
Middle East and other parts of the sub-continent. Keeping in view the growing demand for
gold here, we decided to include Pakistan also in the Bullionaire Contest," said
Mohammed Iqbal, Executive Director, ARY Jewellers, Dubai.
ARY Jewellers is a Dubai-based jewellery organization and has launched
a number of gold products, the most popular being the ARY "Rainbow Hearts" and
Punjab Bank announces 10 percent bonus
The 9th Annual General Meeting of the Bank of Punjab was held at a
local Hotel here which was presided by the Acting Chairman Dr. ASIF HAFEEZ SHAIKH and was
attended by a large number of share holders. The meeting approved the annual accounts of
the Bank of Punjab for the year ended December 31, 1998.
While reviewing of the Bank's performance for the year 1998, the Acting
Chairman informed the share holders that by the grace of Allah, the capital and reserves
of the Bank have increased from Rs. 1.672 billion (1997) to Rs. 1.795 billion as of close
of business in 1998. Similarly deposits, investments, advances and total assets show
improvements culminating in a pre-tax profit of Rs. 135.615 million. The Bank's Capital
Adequacy ratio at 18.60% is also comfortable.
He said, the operational peformance of the Bank in totality during 1998
remained acceptable. In line with our commitment to provide financial assistance to the
priority sectors, particularly "Kissan Dost Agriculture Scheme and Green Tractor
Scheme" the Bank has made available increased funding of Rs. 547.003 million during
the year under review. The credit portfolio shows an overall growth from Rs. 5,064.524
million to Rs. 5,611.527 million. The pace of recovery of non-performing loans continues
to remain vigorous.
He further said that the Bank's emphasis on improving its foreign trade
activity bore fruit in the shape of import business increasing to Rs. 915.300 million an
improvement of 64% and export business to Rs. 1.21 billion an improvement of 57%. In order
to make the deposit base sound and more profitable, focus is being placed on consolidation
of existing facilities. We attained a deposit level of Rs. 17.101 billion during the year
a rise of Rs. 1.304 billion i.e. 8.25% over previous year's deposit level of Rs. 15.797
billion. The ratio of public sector deposits to private sector deposits improved from
30:70 as on 31.12.1997 to 29:71 as on 31.12.1998 which signifies an enhanced confidence of
the private sector in us.
The Bank's range of utility services he added, which earlier included
billing facilites for WAPDA, Sui Gas, WASA (in Public Sector) and Paktel, Instaphone (in
Private Sector) were further expanded during 1998 when we were commissioned by PTCL to
collect their bills.
The Acting Chairman further said the Bank is in the process of
implementing a fully integrated and comprehensive management information system. This
process of automation should augment controls. The Bank has continued to attach great
importance to its human resources. The Officers' Training Institute of the Bank regularly
conducts training courses in various aspects of banking. The Acting Chairman said that he
and the Board of Directors would like to avail this opportunity to express their gratitude
to the Government of Punjab, the Bank's shareholders and above all our clients for their
support and confidence. He thanked the State Bank of Pakistan for their continued
guidance. He also appreciated the dedication and hard work of the management and staff of
the Bank and thanked colleagues on the Board without whose wise counsel and support his
task would have been considerably more difficult. We now look forward to the year 1999 and
new millennium with confidence, he added.
The shareholders approved the issue of Bonus shares in proportion to 10
shares for every hundred shares.
The shareholders acknowledged and appreciated the overall performance
of the Bank. They expressed the hope that is the light of rich experience of the
management and staff, the Bank would continue to endeavour for its further progress and
glory of the Nation.
Eli-Lilly Sponsors "Tobacco Use is a Curse" Essay
Eli-Lilly Pakistan Limited was the sponsor of the Essay Competition
"Tobacco Use is a Curse" organized by the Pakistan Chest Society (Sindh Chapter)
for the school and college students, recently.
Mr. Keith Watson, Managing Director of Eli-Lilly Pakistan Limited
presented the first prize of Rs. 10,000/- to Ms. Shafq Bin Tariq of St. Lawrence's Girl's
School; Prof. Naeem Jafri, Chairman, Ziauddin University gave away the second prize to Ms.
Sohni Dean of Convent of Jesus and Mary School and third prize to Ms. Samreen Razi of
Gulistan Shah Abdul Bhittai School. A special prize was also awarded to Mr. Ala Zia of
City School by Dr. Ghazala Ansari, President of Pakistan Chest Society (PCS),
The prize distribution ceremony was held in the committee hall of the
Jinnah Post-Graduate Medical College (JPMC) during which Dr. Nadeem Rizvi, General
Secretary PCS said, "It is essential to create an awareness amongst school and
college children about the hazards of tobacco use and there is an urgent need to form an
association in such institutions to communicate its implications".
(L/R) The Chief Minister of the Punjab Mr. Shabaz Sharif, General
Manager of the PC Lahore Mr. Irshad B. Anjum and the District Magistrate escorting the
Chief Minister to the Amercian Business Council's convention.
UOG and Mobil agree on first gas for Dolphin
London, July 1, 1999: The UAE Offsets Group (UOG) has announced an agreement on the
initial step towards first gas for its Dolphin initiative with Mobil Oil Qatar Inc. an
affiliate of Mobil Corporation, one of the worldls largest energy companies. The Dolphin
initiative is the worldls largest energy-related program, aimed at stimulating economic
development in the Gulf region and beyond.
Separately, UOG has signed memorandum of understandings (MoUs) concerning the
downstream purchase of gas with authorities representing the governments of Dubai and Oman
as well as the government of Pakistan. Under the terms of an MoU signed with the UOG in
Abu Dhabi today, Mobil Oil Qatar Inc. will begin negotiations to develop a long term
Supply and Purchase Agreement for initial gas to Dolphin. The parties estimate that
volumes will be in the range of 300 to 500 million cubic feet of gas per day
Mohammed Al Mazroui, Deputy Chairman of UOG, who signed the MoU on behalf of the Abu
Dhabi government- sponsored organization, said : 3This MoU starts the process of securing
a contract in which Dolphin receives early first gas, from existing upstream sources, for
the UAE and Oman markets.2
Todayls MoU also gives~UOG the option to participate in Mobills Enhanced Gas
Utilisation project to produce gas from Qatarls North Field. The signatories expect to
have a binding agreement in place by the end of
Dr. Amin Badr-El-Din, Chairman of UOG, said: 3This is a significant milestone in the
development of the Dolphin initiative. The Mobil MoU is the first agreement with a global
energy major and supports the transformation of Dolphin's business strategy to business
Ken Hull, General Manager, Mobil Oil Qatar Inc., noted, 3Mobil is pleased at the
prospect of working with UOG towards the first step in a potential Gulf gas grid. Because
of Mobills long-standing and strategic partnership with the Qatar General Petroleum
Corporation (QGPC), we are uniquely positioned in Qatarls North Field to produce gas
economically for export. We believe Mobil and UOG together can achieve the common goal of
producing Qatar North field gas to benefit economic development of the entire region. When
Dolphin becomes operational, it will create considerable benefits for all participants,
public and private sector, and for the people of the region.2
The Dolphin program includes construction of a pipeline from Qatar to a landfall on the
Abu Dhabi coast and distribution of gas through the existing network, supplemented by new
construction as necessary. The pipeline will then continue to Oman and beyond. The UOGIs
plans for Dophin also envisage the creation of markets for energy inlcuding Sinalat, a
UOG-sponsored development of basic industries and petrochemical facilities within the UAE,
and expansion of Tabreed, a Dubai-Abu Dhabi joint venture created under UOG auspices to
develop new cooling systems. Other customers would include iron and steel plants,
aluminium smelters, and independent power producers as well as gas trading corporations.
0X22~ ICI Pakistan Ltd and E. I. DuPont de Nemours & Company signed a l 5 year
Technical Services Agreement which enables access to technical resource and "know
how" on an as need basis. The arrangements also allow for participation in Technical
Exchanges with other DuPont Sites and I,icensees.
This Agreement wall strengthen ICI Pakistan's operational support arrangements and
ensures il benefits from future developments and improvements in other PTA operations with
similar technology hence improve performance and add value to its lousiness.
I('l Pakistan's PTA plant is based on technology purchased from ICI by DuPont in 1997
consequent to the purchase of ICrs glc bal PTA Business, except in Pakistan, by DuPont.
Various agreements were plot in place to ensure ongoing support fronl DuPont during the
final stages o ' Project completion and commissioning. Since start up there has been
regular access to technical and operational expertise within DuPont and ICI Plc in
particular during the early period whe the Pakistan ManaFement team was being trained and
developed. Currently there are five DuPon': employees on secondment to ICI Pakistan who
are working in key operational roles with a brief to ensure the efficient transfer of
technology to Pakistan Managers.
FWBL - MICRO business skill courses for women
First Women Bank Limited has started Certificate Courses in technical
skills for various lines of micro businesses for women at FWBL Business Centre, Karachi.
These courses are very helpful for those women who intend to start their business at small
scale. Computer, Fabric Painting, Glass painting, Pot Painting and Self Grooming courses
are very popular among women.
FWBL is going to start courses for women entrepreneurs in the field of
Marketing and research, Accounting, Auditing, Planning and Management and legal and Income
Tax to deal with their business problems and requirements.
Advisory service, credit facilities and all in house facilities such as
internet, E-mill and fax are also available all the time in FWBL Business Centres Karachi,
Lahore and Islamabad.
Burson-Marsteller strengthens Position in Switzerland
Burson-Marsteller (B-M), which is the world's largest public relations
and perception management consultancy, has announced that it is strengthening its position
in Switzerland with the acquisition of the remaining shares in its Swiss partner
Jaggi/Burson-Marsteller, the full-service communications agency. The company will be known
as Burson-Marsteller, AG.
B-M is represented in Pakistan by Mediators (Pvt) Limited, a public
relation and communications consulting company.
Commenting on the announcement, Christopher P. A. Komisarjevsky,
Burson-Marsteller World-wide CEO, said: "As a financial and diplomatic centre of
Europe, Switzerland is of strategic importance to Burson-Marsteller. The partnership
between the two companies has been very successful with strong growth among national and
It is anticipated that in future returns to NIT Unit holders will be
mainly in the form of appreciation in unit price and to a lesser degree in the form of
cash dividends, Mr. Nasim Beg acting Chief Executive of the Trust said here Friday while
expressing a resolve that NIT unit holders get high returns on their investments.
He was addressing a press conference to brief the media about the
financial results of NIT during the fiscal year 1998-99.
He said that NIT is trying to make its dividend policy to be in line
with international practice, whereby mutual funds generally distribute their dividend
income but retain most of the capital gains within the fund.
He assured that change in dividend policy will have no adverse effect
on the returns to unit holders. Explaining the anticipated change in the policy he said
that cash dividend resulted in the NIT unit price being adjusted downward by the exact
amount of the dividend. If there was no divined payout, the unit price would be
correspondingly higher. "From the point of view of the investor the total return on
their investment over a given time period, will not be effected" he added.
NIT chief further informed that during the year 1998-99 there was net
inflow of funds of more than Rs. 500m therefore there had been no pressure to sell. This
had resulted in Capital Gains being lower at Rs. 84 million as compared Rs. 1,929 million
He explained that during the previous year (1997-98) the fund faced
redemption pressure, which meant that a certain amount of stocks in the fund's portfolio
has to be sold which in turn resulted in capital gains to be booked. But in the last
fiscal year management took a decision not to sell shares except for research driven
reasons altogether by selling shares larger capital gains could have been accounted but
that would not have been in the long term interest of the Unit holders. This, he said, was
especially true of the "privatisation plays" in the portfolio, as NIT held a
very large number shares of state-owned companies which were candidates for privatisation
(PSO, SSGC, SNGPL etc). "It was likely that when these are privatised, they will
fetch prices which are several times the current market prices. In the long term interest
of Unit holders it was considered better to retain these and other good quality stocks in
Mr. Nasim Beg said that Revenue income for NIT was lower at Rs. 1,133
million as compared to Rs. 1,595 million in the previous year. This, he explained, was
largely due to a drop of Rs. 27m in dividend income. Dividends received from NIT's
holdings in Mutual Funds were down sharply from Rs. 133m to Rs. 5.2m. Also Substantially
lower dividends were also received from Cherat Cement, Prime Bank, PILCORP, Bank Al Habib
etc. Dividend income from Nestle and Al-Ghazi Tractors was also lower as NIT sold the NIT
chief also explained reasons for moving to a forward pricing system with effect from July
3rd 1999, which is the international standard.
He said that since November 1997, the Net Asset Value (NAV) of NIT's
fund was calculated daily on the basis of the closing prices of the investment held by the
fund. Unit prices, which are based on the NAV, were also set daily. Thus Sale and
repurchase of units took place at prices which were calculated at the close of business on
the previous day. If there was a very large market movement on any day, then new buyers or
sellers could benefit at the expense of other Unit holders. While NIT has the right to
re-set its prices in case of a major market movement, this was difficult in practice. With
the introduction of forward pricing system Unit sale and repurchase requests received on
any day would now be settled at prices calculated at the close of business on the same
day. This would ensure equal and fair treatment to all Unit holders.
Commenting the budget 1999-2000 Mr. Nasim Beg said that there were two
measures announced in the Budget on June 12th which have a direct impact on NIT, exemption
of dividend income of all mutual funds from the deduction of 10% withholding tax and
exemption for NIT for two years from the requirement to distribute 90% of its income to
quality from income tax exemption.
NIT, he said along with the Mutual Fund Association of Pakistan, had
lobbied for a change in the tax laws, which required mutual funds to distribute 90% of
their income to quality for income tax exemption. This change would not have any effect on
the earnings of mutual funds, but only on their cash flow. This change, by allowing mutual
funds to build up their asset value over time, would greatly increase the long term
benefit of investors, he added.
Air freight unit lahore customs collects record revenue Rs.
1702 billion during the financial year 1998-99
The Air Freight Unit of Lahore Customs has collected a record rvenue in
terms of customs Duty and other leviable Government taxes during the financial year
1998-99. A total amount of Rs 1702 million has been collected. The Custom Duty collected
during the year amounts to Rs. 1378 Million which shows an increase of Rs. 74 millions as
compared to the amount of duty collected during the last financial year 1997-98. Not only
the given revenue target has been achieved but it has been surpassed by 10%. in the month
of June, 1999 a record amount of Custom Duty amounting to Rs. 142 million has been
collected while during the corresponding month of last year only 118 million duty could be
collected. The revenue achievement of this year is unprecedented in the history of AFU
inspite the fact that economic activity remained sluggish during the year as the custom
tariff were reduced and even the imports through air also showed decrease by 22.50% during
the last year as compared to the financial year 1997-98. During the year 1998-99 the
weight of the total consignments was 4464.98 M.Ton while during the same period of the
corresponding year the weight of the total consignments was 5743 M.Ton showing a decease
of 22.5% during this year. It clearly shows that the weight of import has been reduced
during this year. During the year 1998-99 the total assessable value of the goods brought
by air was Rs. 5016.50 million while during last year the total assessable value was
5016.50 million. Moreover this year the value of duty free imports also increased by
105.44%. the major revenue generating items brought by Air includes. pharmaceutical raw
materials, medical equipments, machinery parts, garments, cosmetics. Telecommunication
equipment. During the year the staff of AFU kept pressing hard on the defaults and started
a vigorous campaign of tax recovery. As a result of this campaign more than Rs. 60.38
millions were recovered as outstanding arrears. This figure shows an increase as compared
to the recovery made during the last year. During the last 2 financial years only an
amount of Rs 39 million could be recovered.
Though economic activity remained sluggish, yet the all out efforts of
AFU staff under the guidance of Collector Customs almost smashed the Khepia gang from the
Lahore Airport. Resultantly the well known Khepias of Lahore were persuaded to become
genuine importers and now most of then are genuinely importing various goods and thus
causing an increase in the Government revenue. The genuine and bonafide passenger are
bringing their bonafide goods and they are being provided with all type of necessary
facilitation. during the year 1998-99, a total number 8235 passengers brought 3678.29 M
Ton of house hold goods and paid an amount of Rs. 14.78 million as Customs duty and Rs.
14.77 Millions as other taxes. While during the year 1997-98 10751, passengers cleared
their personal effects.
During this year 1998-99 as the khepia culture has been smashed, a
total number of 68 seizure cases worth Rs. 7.3 million were instituted and after that all
have been adjudicated and most of the confiscated goods have been auctioned. Notable
seizure cases included electronic goods, cosmetics, garments, video CD's pigeon feathers
and assorted goods.