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Oct 08 - 14, 2001



The first phase of low- and high-speed wind tunnel testing on the Boeing Sonic Cruiser has been completed, marking an important milestone toward providing additional information on the aerodynamic characteristics of the revolutionary new airplane's design.

The Sonic Cruiser's new airplane concept is intended to change the way people fly, enabling passengers to travel non-stop directly to their desired destinations in less time. Likewise, it will allow airlines to maximize the economic performance of their airplanes. Environmental performance is an important factor in the design of the Sonic Cruiser; it will be quieter and cleaner than all anticipated regulations and provide excellent fuel efficiency.

The recent Sonic Cruiser wind tunnel tests provided valuable information that will be used in evaluating the general design concepts for the airplane. The specific size, range, capacity and performance attributes of the airplane will be developed and tested as needed. Boeing continues to work together with customers around the world as it evaluates this airplane concept and continues to gather input on airline needs and direction for future travel.

"Initial results of the high-speed wind tunnel test are within the range typical for first tests of a new transport airplane design," said Walt Gillette, vice president and program manager of the Sonic Cruiser program. "The test results match the expectations we had based on our modeling approach for this new airplane. We continue to see this concept as a promising new airplane design that is consistent with our view of the future direction for passenger travel," Gillette said.

Intel® Itanium™ architecture

Intel announced its support for a groundbreaking, high-profile scientific research project aimed at furthering the horizons of human knowledge using systems based on the Intel® Itanium™ processor family. Intel has become a founding member of the CERN openlab for DataGrid applications, to be built over the next three years by CERN, the European Organization for Nuclear Research in Geneva.

As an initial sponsor, Intel will invest $1.5M USD over a period of three years to help the lab achieve its objectives. Intel's contribution to the CERN openlab is a long-term commitment and will include access to its extensive resources and network in the world of IT as well as its expertise in high-performance computing.

"Intel is proud to be a key contributor to such an important project for the advancement of scientific research", commented Steve Chase, Director, Business and Communication Solutions Group in EMEA. "The Intel® Itanium™ architecture provides outstanding performance for demanding High Performance Computing applications combined with unprecedented flexibility in terms of operating systems and hardware platforms with clustered solutions and multiprocessor systems. "

Arif Habib Securities — AGM

Arif Habib Securities Limited's AGM was held on 29th September 2001 when the shareholders approved the company's accounts for the year ended 30th June 2001 showing a net profit of Rs. 132,560,071, translating to an earnings of Rs. 26.51 per share or a return on equity of 30.07%. They also approved a cash dividend of 50% for the year. The dividend shall be payable to shareholders on the company's records as on 21st September 2001. The company had announced a book closure (for share transfers) from 21st September 2001 to 29th September 2001.

The shareholders have elected the new board of directors for a three year term to replace the retiring directors. Mr. Majid Dawood, now resident abroad did not offer himself for election and Mr. Sirajuddin A. Cassim has been elected in his place. The other retiring directors offered themselves for re-election and have been elected. These directors are Mr. Arif Habib, Mr Muhammad Yousuf, Mr. Abdul Majid M. Siddiq, Mr. Muhammad Rafiq Jangda, Mr. Abdus Samad A. Habib and Mrs. Zetun Arif.

This was AHSL's first AGM after it going public. What is remarkable is not only the company's results and a healthy maiden dividend after going public despite a difficult year for the domestic economy and the stock market, but also the fact that the company declared its results within one month of the close of its financial year and has now held the AGM within three months of the year-end. This is highly commendable and speaks volumes for the company's commitment to good corporate governance. We hope others will take a leaf from Arif Habib's book.

The shareholders' equity after the dividend is Rs. 494.65 million, giving it a break up value of Rs. 98.93 per share. This is indeed good news for those who subscribed to its shares at Rs. 80 per share in June this year.

I.A.P. Elections for 2001-2002

The Central Committee of the Insurance Association of Pakistan at its meeting held on September 8, 2001 at Karachi, unanimously elected Mr. M. Jamaluddin as Chairman and Mr. Basit Hassan Syed as Vice-Chairman.

The other members of the Central Committee are as follows:

Central Committee: 1. Mr M. Jamaluddin, Chairman, 2. Mr. Basit Hassan Syed, Vice-Chairman, 3. Mr. M.I. Ansari, 4. Mr. Akhtar K. Alavi, 5. Mr. Mohammad Fasihuddin, 6. Mr. Akbar D. Vazir, 7. Mr. F.A. Jaffery, 8. Sheikh Abdul Qayyum, 9. Dr. Mumtaz A. Hashmi, 10. Mr. S. Umer Ali Shah, 11. Mr Mujib Khan.


At an investiture ceremony dinner hosted at his residence by the French Consul General in Karachi Gilles Bonnaud, HE Yannick Gerard, Ambassador of France to Pakistan conferred the prestigious French civil award "Chevalier de l'Ordre National du Merite" (Knight of the National Order of Merit) on Mr. Zakir Mahmood, President Habib Bank Limited in recognition of his meritorious services in promoting bilateral relations between France and Pakistan.

The coveted award, conferred on behalf of the President of the French Republic, was instituted in 1963 during the Presidency of Charles De Gaulle. In peacetime, this distinguished medal is conferred not only on French nationals but also on foreigners who are significantly contributing to French culture and language, promotion of bilateral relations and the improvement of mankind all over the world.

Mr. Zakir Mahmood a highly qualified, seasoned and respected, French speaking banker, before being nominated President HBL, served as the country manager Pakistan for Credit Agricole Indosuez, one of the biggest French banks. During his tenure at the Indosuez and after his departure, he rendered invaluable services in promoting friendly relations and mutual understanding between the two countries.

The investiture ceremony dinner was attended by family members and very close friends of the proud recipient, including Governor Sindh, Mohammedmian Soomro, Governor State Bank, Dr. Ishrat Hussain, Sindh Minister for Finance, Dr. Abdul Hafeez Sheikh, President UBL, Amar Zafar Khan, President Standard Chartered Bank, Mr. Azhar Hamid, Honorary Consul General of Spain, Mr. M.I Akbar, Deputy Chief Executive Business Recorder, Mr. Arshad Zuberi, Country Manager Pakistan Credit Agricole Indosuez, Mr. Jean-Pierre Raynaud, French Trade Commissioner in Islamabad, Mr. Hubert Colaris and French Trade Commissioner in Karachi, Mr. Jean-Pierre Filippi.

Amin Gulgee's Solah Singhar Unfolds at the Sheraton

Once again on the 26th of September, the Karachi Sheraton Hotel and Towers, in association with LUX, held a magnificent show by Amin Gulgee titled "Solah Singhar" in its Darbar Halls. The show a part of ArtFest 2001 brought together Karachi's elite from the media, business and the fashion world as well as a variety of designers and stylists, looking forward to Amin's overwhelming interpretation of jewelry & sculptures on a stage.

The show was certainly one of the most glittering evening Karachiites have seen in a long time, featuring a very unique presentation of Solah Singhar- the sixteen levels of adornments worn by Sub-continental women. The top models of the industry namely, Vinnie, Iraj and Nadia Hussain were seen displaying Amin's originality and infinitely exaggerated creations, which took the evening to an alternative and extraordinary level. Sheema Kirmani, who graciously agreed to dance for Solah Singhar, captivated the audience with her performance.

Singapore Airlines Announces Details Of Service Reductions

Singapore Airlines (SIA) announced that in light of the prevailing economic situation and a decline in forward bookings, it was reviewing its operating patterns. Outlined below are details of service reductions to be implemented in the near future.

• Singapore - Amsterdam - New York (Newark) services will be reduced from four per week to three. However, SIA will continue operating its daily service to New York (JFK International) via Frankfurt.

• Singapore - Surabaya services will be reduced from 12 per week to 10.

• Singapore - Kaohsiung services will be reduced from five per week to three.

• Singapore - Kuala Lumpur services will be reduced from 10 per day to nine.

• Singapore - Hong Kong services will be reduced from seven per day to six.

All the above changes will take effect at the end of October 2001.

In addition, as a precautionary measure, SIA is suspending its services to Pakistan. SIA currently flies four times a week to Karachi and Lahore. The suspension takes effect from Friday 28 September. SIA wishs to apologize to all passengers who may have been inconvenienced as a result of this suspension of services and hopes to resume services when circumstances permit.


With the world's attention focused on Central Asia, His Highness the Aga Khan, Imam (spiritual leader) of the Shia Ismaili Muslims, outlined a development approach sensitive to prevailing concerns about the region.

Launching new initiatives under an Agreement of Cooperation for Development negotiated over the past twelve months and signed with Kyrgyz President Askar Akaev, the Aga Khan situated his plan in the context of widespread misunderstanding about Islam and countries in the region, including Afghanistan.

After agreeing to a 10 year rural development programme, planning assistance, scholarships and training programmes to help launch the tourism industry, and the selection of Naryn, a city in the At Bashy mountain range, as the Kyrgyz campus for the recently established University of Central Asia, the Aga Khan addressed legislators of the two houses of the Kyrgyz Parliament on "critical issues brought to the forefront by the tragic events of September 11th."

Noting that over the years there had "been an effort to repress pluralism in all its forms," the Aga Khan said that it was "important to remember that such situations are not unique in history — the Inquisition in Spain was every bit as cruel and destructive as any case that one can imagine. "What is not acceptable," he said, however, " is any attempt to impose a particular interpretation on an unwilling individual or population. The Holy Quran says that there shall be no compulsion in religion." "What is even worse," he continued, "is when such an imposition causes degradation of all civilised standards of human behaviour."

Mr Ali S. Habib, Chairman, Indus Motor Company receiving the ISO 14001 certificate from M. Q.M. Rizki, Country Manager Lloyd's Register in 8th Kaizen Convention of Indus Motor Company Limited.

NIT: Positive trend

Despite the volatility in stock market National Investment Trust managed to show positive trends in its income growth. Net Income excluding capital gain grew by around 21% during the fiscal year 2000-2001. The management of largest open-ended mutual fund in Pakistan managed sales of its units to the tune of Rs. 481 million. It also recorded a premium of Rs. 107 million largely through strategic sales of shares through block deals.

Even in the era of decline it outperformed the stock market. Net asset value of NIT declined by 8.2% outperforming KSE 100-Index which declined by 10.2% during the year under review.

The income during the year ended 30th June 2001 was recorded at Rs. 1,834 million. There was strong growth in dividend income, rising to Rs. 1,684 million from Rs. 1,403 million in the previous year.

Net sales of units showed an appreciable improvement at Rs. 85 million compared to net redemptions of Rs. 1,776 million in the previous year. Sales of units in the current year were Rs. 481 million while redemptions were Rs. 396 million. Although there was eased up pressure on redemptions, still focus remained on sales of shares of strategic nature only.

The management maintained a policy where the portfolio was managed in a manner where dividend income streams were ensured. To generate liquidity trading activity was restricted to disinvestment of non-liquid scrips via block deals whereby significant premiums over the market price were received. The sale value of block deals was Rs. 445 million, which included a premium of Rs. 107 million over the prevailing market rates.

The positive net sales of Units position also allowed us to reduce short-term borrowing to Rs. 418 million in financial year 2000-2001 from Rs. 720 million in financial year 1999-2000. Total borrowing declined by over 20% to Rs. 1,189 million from Rs. 1,491 million in the previous year. Trust expenditure declined by 9% from Rs. 444 million to Rs. 404 million.