sets. In Korea, CDMA unit sales increased 34
percent year on year, while in overseas markets, CDMA unit sales
increased 49 percent. GSM unit sales jumped 262 percent, over 2003,
due to sales expansion in North America and the successful launch of
WCDMA handsets. In addition, Wireless in Local Loop (WLL) mobile and
fixed telephone connections and system terminals led the strong
growth in exports among system equipment business.
Sales from the Digital Display & Media
division increased 9.9 percent to US $ 1.838 billion, compared to
2003 and its operating profits reached US $ 8.590 Billion. Sales of
digital TVs were up by 42 percent this year and those of PDP modules
increased by more than 200 percent as compared to 2003.
CITIGROUP ANNOUNCES RS.1.74 BILLION 7-YEAR TERM
LOAN TO MOBILINK
Citibank N.A Pakistan (a member of Citigroup)
announced a Rs. 1.74 billion 7-year term loan facility to Mobilink.
This facility is structured under a Risk-Sharing Agreement between
Citigroup and the Overseas Private Investment Corporation (OPIC), a
US government development agency. Under the Citigroup-OPIC Risk
Sharing Agreement up to US$ 100 million shall be provided for
private sector investment in Pakistan.
Keeping pace with the phenomenal growth in the
cellular industry in recent years, Mobilink has also rapidly
increased its capacity to cater to this latest demand in the
country. The loan facility will be used to partially meet Mobilink's
expansion plans, thereby allowing Mobilink to maintain its dominant
position in the industry.
AMERICAN EXPRESS BANK'S PLS DEPOSITS
The following profit rates have been offered by
American Express Bank on different categories of PLS Deposits
maintained during January to June 2004.
TYPE OF DEPOSIT
50,000 to 99,999
100,000 to 199,999
200,000 to 299,999
300,000 to 499,999
500,000 & above
The Rate of returns also offered by
the bank for other PLS Deposits maintained during January to
H.E. Dr. Emil Ghitulescu, Ambassador
Extraordinary and Plenipotentiary of Romania has said that
friendship between Romania and Pakistan is time-tested, and
sustained cooperation in Economic, Cultural & Education fields
between the two countries reflects their strong urge for mutual
growth and development. He said this while delivering a lecture on
"Pakistan-Romanian Friendship through decades" at Preston
University, Islamabad Campus. He explained that before the Romanian
Revolution (December 1989) there was a Socialist form of government
and the economy concentrated in the hands of the State. After
Revolution in 1989, the country adopted democracy, Romania is a
member of NATO, and it is seeking membership of the European Union
(January 2007), he said.
PAKTEL ANNOUNCES VALUE-ADDED PREPAID PACKAGES
Pakistan's cellular market has witnessed rapid
growth in the past few years. Paktel, Pakistan's pioneer cellular
company has grown to be a trusted name in the market and has always
stayed one step ahead of the competition with value-added schemes
such as their latest offer of including 50% free air time on its
Now for the first time in the cellular history of
Pakistan, Paktel has launched attractive discount packages on its
prepaid brand 'Tango". Amees Ahmad, Brand Manager Tango, gave
the particulars of the offer, "Now our valued customers using
'Tango' can enjoy 50% free airtime on cards worth Rs. 600 and Rs.
900 and that is not all, these cards now carry a validity of one
year. This special deal is our way of assuring our 'Tango' customers
that they shall continue to receive the best network coverage at the
most economical tariffs in the market. With 'Tango' every customer
is unique and deserves the best." He continued, "This
exciting deal lets a customer load as many cards as required
therefore increasing the benefits."
TRADERS AND INDUSTRIALISTS IN FUNCTION OF ICCI
Addressing a gathering of traders and
industrialists in Melody Market at Islamabad, Mr. Zubair Ahmed Malik,
President of Islamabad Chamber of Commerce and Industry (ICCI)
reiterated his resolve that the integrity of the Chamber would be
maintained at all costs with the full and unhindered participation
of the business community. He pointed out that the present
management of Islamabad Chamber of Commerce and Industry (ICCI) has
unearthed several cases of corruption, mismanagement and
misadministration and necessary steps to investigate and improve the
state of affairs are being taken.
The forthcoming elections for the management of
ICCI would be strictly above board and meet all the legal
requirements, Mr. Malik emphasized.
The Chairman of the Traders Association of Melody
Market, Mr. Salahuddin eulogized the services of Mr. Malik and his
colleagues in ICCI and reassured that the traders' community of
Melody Market would give them full support to improve the
performance of ICCI.
HUMAYUN TO LEAD DELEGATION IN PAK-KENYA JMC
The Minister for Commerce, Mr. Humayun Akhtar
Khan, will be visiting Kenya to attend the 3rd Session of Kenya-Pak
Joint Ministerial Commission. Mr. Tariq Ikram, Minister of State and
Chairman, Export Promotion Bureau, together with a trade delegation
from FPCCI and Government officials from different Ministries will
be accompanying the Federal Minister.
Pakistan-Kenya enjoy friendly and cooperative
relations. The visit of a large Pakistan business delegation to
Kenya will not only help in giving a boost to our bilateral trade
relations but would also lead to greater understanding between the
two governments and their entrepreneurs.
ENGRO ANNOUNCE FIRST HALF 2004 RESULTS
The Board of Directors of Engro Chemical Pakistan
Limited met on July 28, 2004 to review the first half 2004 business
results of the company. The salient features of the results are as
PAKISTAN FERTILIZER MARKET
The market demand for Urea during the first half
2004 was 1.96 million tons, an increase of 8% over the same period
last year. The indigenous production at 2.06 million tons was down
4% over the first half of 2003. The product was in ample supply
throughout the period and the domestic price of urea on average was
40% or Rs. 288 per 50/kg bag below the international price.
Sales of phosphates, the other high volume
fertilizer declined by 15% to 0.17 million tons due to soaring
international prices that impacted farmer affordability. The
Government in the budget announcement provided welcome relief to
farmers by reducing the GST and withholding tax, the full impact of
which will flow through in the balance of the year.
COMPANY OPERATING PERFORMANCE
The Company's sale of urea during the first half
of 2004 was 372.000 tons, representing an increase of 5% over last
year. The volume increase trailed industry growth rate due to
product limitation and restricted Engro market share to 19% versus
20% in 2003. Engro urea production during the period was 380,000
tons compared to 482,000 tons achieved in the same period last year,
which was on all time record without any plant shutdown. The lower
production in 2004 is attributable to plant outage on account of
planned annual maintenance turnaround and subsequent operating
issues that have been effectively resolved.
The Company's sale of imported phosphoric
fertilizers, DAP and Zorawar declined by 10% to 30,000 tans, while
sale of Engro manufactured NPK, re-launched as 'Engro Zarkhez' as
part of new product branding strategy increased by 22% to 44,000
tons for the half year of 2004, over 36,000 tons sold last year.
The net profit for the first half of 2004 is Rs
483 million which compares with Rs 534 million recorded for the same
period last year. The decline in earnings is mainly attributable to
lost urea production.
Engro Vopak Terminal Limited, our joint venture
in the bulk chemical terminal business posted an after tax profit of
Rs 165 million compared to Rs 138 million for the same period last
year. The company paid an interim dividend of 15% during the second
quarter, which is the same as last year. Engro's share of the
dividend amounted to Rs 67.5 million. Engro Asahi Polymer &
Chemical Company Ltd., our joint venture in the PVC business posted
an after tax profit of Rs. 160 million compared to Rs 8 million for
the same period last year on account of improved margins. Innovative
Engineering & Automation Limited, our 51% owned subsidiary paid
Rs 10 million as Engro's share of dividend.
Based on the half-year results our Board of
Directors is pleased to declare an interim dividend of Rs 2.50 per
share, which is the same as for the corresponding period last year.
NEAR TERM OUTLOOK
The Company expects urea demand to record modest
growth during the second half of 2004 that is also likely to see
urea imports of about quarter of a million tons to meet the
requirement for the Rabi season. Over the last several years,
Pakistan's self-sufficiency in domestically produced urea has
benefited the farmers by way of lower prices, but this scenario is
likely to change on account of planned imports and the continued
surge of urea price in the international market. At current prices
the impaired urea will cost Rs 900 or twice as much as the locally
produced product. This will have major ramifications on farm
economics and the prices of agricultural produce. It is critical
that the government takes notice of this emerging trend to attract
major investments in fertilizer plants and ensure supply of urea to
farmers at prices below international level to boost agricultural
The company will continue to maintain its current
focus at improving the operation of its urea plant to achieve both
volume growth and cost efficiencies and minimize the impact of cost
EMIRATES LATEST ORDER MAKES IT ONE OF THE BIGGEST
Emirates has placed firm orders of four Boeing
777-300ER aircraft with nine options. The 13 aircraft have a list
price value of US$2.96 billion.
The contract was signed by Emirates' Chairman H.H.
Sheikh Ahmed bin Saeed Al Maktoum and Boeing's President and CEO
Alan Mulally at the Farnborough Air Show in the UK recently. Maurice
Flanagan, Emirates' Vice Chairman & Group President, Tim Clark,
President Emirates Airline and Ghaith Al Ghaith, Executive Vice
President Commercial Operations Worldwide were present on the
The four aircraft on firm order will be delivered
during 2006. They will be configured in First, Business and Economy
cabins with 12, 42 and 310 seats respectively. The remaining nine
are covered by purchase rights that extend through 2012.
Sheikh Ahmed said: "The 777 has proved to be
an excellent aircraft for Emirates, and is extremely popular with
our passengers, cargo customers and crew. The new Extended Range
version will provide the reliability and the extra capacity for
passengers and cargo which we will need. The low operating costs,
renowned passenger approval, and the revenue capability from both
cargo and passengers are the main reasons we selected the
Emirates currently operates 21 Boeing 777-300s
and 777-200s. Next year, delivery will start of a separate group of
26 777-300Rs from leasing companies as announced at the Paris Air
show last year. At that point, Emirates will operate the 777-200,
777-200ER, 777-300, and the 777-300ER. By late 2007, Emirates will
have a total of 51 Boeing 777s, giving it one of the world's largest
777 fleets, with a list price of US$ 10 billion.
Boeing Commercial Airplanes President and Chief
Executive Officer Alan Mulally said: "When Emirates receives
the 777-300ER, it will become one of three airlines in the world
operating four members of the 777 family. That's further evidence of
its commitment to be one of the world's premier airlines. We're
honoured to be its partner."
The 777-300ER has a range of 8,900 kms with a
full passenger and cargo load, against a 6,700-km range for the
777-300. The aircraft's cargo capacity is a substantial 20,000 kgs
with a full passenger load.
Emirates will use the 777-300ER to further its
expansion plans and to increase frequency on major trunk routes. The
airline currently serves 77 destinations in 54 countries.
Boeing's 777 family is one of the world's most
advanced and the 777 is the only airplane to receive ETOPS
(extended-range, twin-engine operations) certification upon first
In addition to its Boeing fleet, Emirates also
operates the latest Airbus aircraft with a fleet of 29 A330-200s,
eight A340-300s, five A340-500s and one A310 in service. On order
are five more A340-500s, 20 A340-600s and 45 of the super-jumbo
A380-800s which will give Emirates one of the largest Airbus fleets
in the world.
Emirates aircraft orders were announced at the
Dubai Air Show 2001, the Paris Air Show last year and Farnborough
Air Show this year. The aircraft on firm order will bring Emirates,
fleet to 169 by 2021.s