Prospective: Belarus eyes Pakistan as lucrative market
ICCI President urged that Pakistan and Belarus should facilitate their private sectors in establishing direct contacts. PHOTO: STOCK IMAGE
ISLAMABAD:
Belarus is interested in broadening relations with Pakistan as both countries possess the potential to expand bilateral trade, said the newly-appointed Ambassador of Belarus to Pakistan Andrei Ermolovich.
He was interacting with businessmen during his visit to the Islamabad Chamber of Commerce & Industry (ICCI).
Ermolovich said Belarus’ exports to Pakistan are confined to limited items including tractors, tyres, spare parts, chemical fibres and petrochemicals. “There is room for development in various other sectors including agriculture, energy, IT, steel and furniture.”
He said the chambers in both countries should enhance direct interactions and sign MoUs to explore new areas of mutual collaboration.
He was hopeful that planned establishment of railway links between Pakistan and Turkey will greatly facilitate promotion of trade between Pakistan and Belarus as it will shorten the route and provide better access to Pakistan to Scandinavian countries.
In his welcome address, ICCI President Shaban Khalid said that Pakistan is looking for new markets and trade partners as the government has offered attractive incentives to foreign investors. “It is high time the companies of Belarus explore Pakistan for investment and joint ventures.”
Khalid added that Pakistan’s steel industry possesses potential for growth and Belarus should consider setting up steel manufacturing plants in the country.
“Pakistan is trying to establish road links with Afghanistan and Central Asian countries and improved relations of Belarus with Pakistan would provide easy access to these markets,” said Khalid.
He urged that Pakistan and Belarus should facilitate their private sectors in establishing direct contacts.
Corporate results: Nishat Mills posts profit of Rs5.51 billion
The company’s fourth-quarter earnings of fiscal year 2014 clocked in at Rs889 million. PHOTO: STOCK IMAGE
KARACHI:
Nishat Mills has posted an unconsolidated net profit of Rs5.51 billion for the year ended June 30, 2014, down 6% year-on-year (YoY) compared to Rs5.85 billion in the previous year.
Earnings per share (EPS) of company also reduced to Rs15.68 compared to an EPS of Rs16.63. The company further announced a final cash dividend of Rs4 per share, implying a dividend payout ratio of 26%.
An AKD Research report on Tuesday said the result was in line with its projections. Similarly, BMA Capital report also said that the result was in line with its expectations.
The company’s fourth-quarter earnings of fiscal year 2014 clocked in at Rs889 million or an EPS Rs2.53, posting a sequential recovery of 15% quarter-on-quarter largely due to significantly higher dividend income from associates.
That said, fourth quarter’s net profit was 49% lower than in the same quarter last year due to the sharp appreciation of the rupee against the dollar, which dragged the realised value of exports lower.
The gross margins for fiscal year 2014 clocked in at 14% as opposed to the gross margins of 17% in fiscal year 2013. This decline was a result of contracting margins in the second half of fiscal year 2014 where gross margins contracted to 10% as opposed to gross margins of 19% in the first half of fiscal year 2014.
Other key announcements accompanying the result concerned the investments in the other companies of the group.
In this regard, the board of directors (BoD) approved an investment of up to Rs4.87 billion across three years in the 660MW coal power project being set up under the name of Nishat Energy Limited (NEL).
Assuming project cost of around Rs100 billion, and a Debt to Equity structure of 80:20, implies a direct equity stake of 24.38% in NEL.
Assuming the remaining equity portion is split evenly among group consortium partners NPL, Nishat Mills is expected to end up with an effective stake of 51% in NEL (taking into account only direct investments in NPL and other associates).
The company has also sought and obtained approval from the Punjab Power Development Board (PPDB) for a change in the site of the coal power plant to Ameer Pur, Rahim Yar Khan.
The company is now in the process of getting the necessary changes in the deadline for the feasibility study of the project.
Redrafting: CAA plans to introduce new aviation policy by month-end
The new aviation policy also envisages encouraging private shuttle services to secondary stations like Benazirabad and Bahawalpur. PHOTO: STOCK IMAGE
KARACHI:
The Civil Aviation Authority (CAA) plans to introduce a new aviation policy by the end of September which will require start-up airlines to have a higher paid-up capital and more aircraft, officials told The Express Tribune.
The policy will also focus on lowering taxes on domestic airlines and offer unilateral rights to Asian carriers, they stated, after a high level meeting chaired by Shujaat Azeem, adviser to the prime minister on aviation, was held on Tuesday at the CAA headquarters to review progress on the national aviation policy.
It has been seven years since the former director general of CAA, Farooq Rehmatullah oversaw preparation of a liberal aviation policy, which was never properly implemented.
“The basic idea is to encourage the aviation sector by offering tax breaks to domestic carriers,” said an official who is involved in the consultations. “For instance, the 17% sales tax on airlines is a major setback.”
But the rationalisation of taxes depends on the government, he said.
“We will try to push the idea forward as multiple taxes on everything from fuel to the import of spare parts have eroded the profits of our airlines. We need to come up with some sort of a cushion,” he said.
As per the proposals in the policy it is apparent that the CAA has decided to discourage weak players from entering the airline business. The new policy will require start-up airlines to have a paid-up capital of Rs500 million against the current limit of Rs100 million.
Similarly, new airlines will need to acquire at least five aircraft against the present requirement of three. “We are doing this to encourage genuine investors.”
When Pakistan adopted the open sky policy in 1990s, more than 20 airline licences were issued to different business groups, however, none of them except Shaheen survived.
Last airline to declare bankruptcy was Aero Asia. This was primarily because the investors who had bought the licences were not financially strong.
The new aviation policy also envisages encouraging private shuttle services to secondary stations like Benazirabad and Bahawalpur. “It is being proposed that they should be exempted from CAA taxes and the paid-up capital requirements for these ventures are set at minimum,” the official said.
The CAA wants to go a step ahead and put up abandoned airports for auction. “We would really like to see private investors take control of airports in cities like Hyderabad and Panjgur.”
The previous policy prepared during the tenure of Rehmatullah also envisaged such an approach but it was never materialised.
The official said that the CAA is also conscious about the exit of Asian airlines from Pakistan. “That is why we intend to offer unilateral open skies to airlines of the Saarc members. This means they wouldn’t necessarily have to reciprocate by offering us flights,” he said.
Airlines including Cathay Pacific, Singapore Airlines, and Malaysian Airlines have scaled back their operations since 2008, partly due to concerns related to the security of their employees.
Only 19 foreign carriers started their operations in Pakistan. Other than the airlines originating from Gulf countries, the only notable carrier making stops in the country was Cathay Pacific.
“When it comes to attracting more airlines, a lot depends on the security situation,” the official said.
Oscars: Pakistan Nominates 'Dukhtar' in Foreign-Language Category
Courtesy of Zambeel Films
'Dukhtar'
The atypical thriller marks a new type of Pakistani filmmaking
Last year, Pakistan re-entered the Oscar race — after a more than 50-year absence — in an effort to bring attention to the country’s cinematic output. Their best foreign-language submission, illegal immigration comedy
Zinda Bhaag, failed to earn a nomination.
The country is hopeful once again, submitting
Afia Nathaniel’s
Dukhtar to the foreign-language Oscar race. The Urdu-language film is a road-trip thriller looking at issues of child marriage in the country.
After her 10-year-old daughter is promised in marriage to a much older tribal chieftain, her mother takes the girl and flees her village, only to be chased by her own husband and the intended groom’s henchman. It’s set against stunning backdrops on the road to Lahore.
The film had its world premiere Sept. 5 at the Toronto International Film Festival this year in the Discovery section and is releasing theatrically in Pakistan Thursday.
The Pakistani selection committee is chaired by Academy Award-winning documentary filmmaker
Sharmeen Obaid-Chinoy, who said of the film, “
Dukhtar has set a new precedent in filmmaking in Pakistan. The film's powerful narrative is met with equally strong visuals that collectively showcase what Pakistani talent is all about. I have no doubt that the story will resonate with people locally and internationally.”
Overseas employment: Over 2.1m workers go to Gulf states
According to the breakdown, about 1.243 million went to Saudi Arabia, 866,418 to UAE and 27,660 to Qatar. PHOTO: STOCK IMAGE
ISLAMABAD:
More than 2.1 million Pakistanis have proceeded to Saudi Arabia, United Arab Emirates (UAE) and Qatar for employment during the last five years, according to an official of the Ministry of Overseas Pakistanis.
According to the breakdown, about 1.243 million went to Saudi Arabia, 866,418 to UAE and 27,660 to Qatar.
The workers were sent through the Bureau of Emigration and Overseas Employment and the procedure and criteria were set by employers of the host country, which vary from job to job.
The selection of workers was a prerogative of the foreign employers, which was based on the criterion of “right person for the right job”, the official said.
Pakistanis working in these Gulf countries are contributing a lot to the national exchequer as the remittances sent home have grown significantly in recent years.
The overseas Pakistanis sent a record $13.92 billion in the previous fiscal year (July 2012-June 2013), according to data compiled by the State Bank of Pakistan. The figure shows a growth of 5.56% or $733.64 million compared with $13.187 billion a year earlier.
Corporate result: PIA losses drop 44% in first half of 2014
The Rs5.23 billion exchange gain, which came because of a stronger rupee against the dollar, offset a sharp 88% decline in other income. PHOTO: STOCK IMAGE
KARACHI:
Financial loss of Pakistan International Airlines (PIA) came down 44.89% to Rs10.131 billion in six months to June 2014 over the same period of previous year as the airline booked exchange gains, higher revenues and a reduction in administrative expenses.
Helped by a rise of 11% in revenues to Rs53.34 billion, the national carrier posted a gross profit of Rs338 million for January-June 2014, reflecting an improvement in its flight operation, according to the airline’s financial statements.
The Rs5.23 billion exchange gain, which came because of a stronger rupee against the dollar, offset a sharp 88% decline in other income. In the first half of 2013, the airline had recorded an exchange loss of Rs1.46 billion.
Cost-controlling measures helped PIA reduce administrative expenses by 6.7% to Rs4.34 billion against last year’s Rs4.65 billion.
Heavy debt of Rs279 billion continues to take its toll on the cash-strapped airline as it has to bear the burden of ever increasing interest payments. This was reflected in the 21.7% rise in finance cost to Rs7.33 billion.
The second April-June quarter would have been even better had the airline not suffered an exchange loss of Rs370 million. Other income when compared with the previous year also saw a steep decline of 90%.
However, PIA was still able to record a gross profit of Rs441 million.
The government has been drip-feeding the airline by helping it arrange loans to pay salaries and vendors as its balance sheet, which carries a negative equity, does not encourage lenders.
The government has decided to sell PIA after its restructuring. The air carrier has been pushing the government for months to release funds for leasing narrow-body fuel-efficient planes.
It has a fleet of 30 active aircraft, but many of these are often grounded for want of repairs.
The green light: Government approves Rs30b worth of projects
The main objective of the 500kv Rewat substation is the enhancement in the 220/132kv transformation capacity at the 500kv Rewat substation. PHOTO: STOCK IMAGE
ISLAMABAD:
The federal government has approved about Rs30 billion worth of new projects including the construction of a campus of University of Engineering and Technology Lahore at Narowal – the constituency of Federal Minister for Planning and Development Ahsan Iqbal.
The projects were approved by the Central Development Working Party (CDWP) — the body having the mandate to approve a scheme up to Rs3 billion and chaired by Iqbal in his capacity as deputy chairman of the planning commission. The UET Narowal campus will cost Rs2.9 billion, according to the Planning Ministry.
However, the Rs72.6 billion development package of Pakistan Railways could not be approved as the meeting was called off before the scheduled time, according to officials. The Rs52-billion project was proposed to rehabilitate and upgrade 400 coaches. Another scheme of Rs18.5 billion, proposed to replace old and obsolete gear of Railways from Lahore to Multan, was not taken up for discussion. The third project was aimed at manufacturing five 3,000-horsepower diesel electric locomotives at a cost of Rs2.3 billion.
The CDWP approved strengthening of the Kohat University of Science and Technology at a revised cost of Rs599.8 million. The project is a step forward in that direction that envisages strengthening research and development through establishing basic infrastructural facilities.
The body also approved strengthening of research programmes at HEJ Research Institute of Chemistry, Karachi with an estimated cost of Rs591.7 million. The main objective of this scheme is to acquire the indigenous capacity for the development of diagnostic, preventive and therapeutic agents against hepatitis, tuberculosis, malaria, leishmania and prevailing tropical diseases.
The CDWP approved strengthening of the Khyber Medical University Peshawar at a cost of Rs983.2 million in a bid to conduct basic research to look into causes of diabetes, hepatitis and its spread. It also approved establishment of headquarters for Nust and hi-tech postgraduate science and technology institutes at Islamabad at a cost of Rs2.5 billion.
In the energy sector, the CDWP approved extension and augmentation of 500/220kv Rewat substations. The main objective of the project is enhancement in the 220/132kv transformation capacity at the 500kv Rewat substation, costing Rs1.9 billion.
For the Physical Planning and Housing sector, the CDWP approved construction of residential buildings for Force HQ GB Scouts and 113 Wing at Gilgit at a cost of Rs216.9 million. Another project of construction of accommodation flats for officers of GB Scouts Gilgit at a cost of Rs112.5 million was accepted.
The CDWP agreed construction of Federal Judicial Academy at a cost of Rs1.3 billion. The present building comprises of limited facilities for the Centre of Excellence, therefore the project was initiated to augment existing facilities.
The body also approved strengthening of existing departments at the Islamia University of Bahawalpur at a cost of Rs862.9 million.
In the water resources sector, a project for construction of small storage dams, delay action dams, retention weirs and flood diversion was also approved at Rs911.3 million. The construction of two recharge dams in Malir Bakhshan and Ran Pathani, Lower Division Kohistan was accepted at cost of Rs876.5 million. Both projects will be implemented in the most vulnerable and drought affected areas of Thar and Kohistan regions of the Sindh province.
Chinese investors keen to undertake joint ventures
Pakistani goods that could be of particular interest to Chinese importers are carpets, leather and its products, surgical instruments, sports goods, fruits and vegetables, rice, pharmaceuticals and cotton. PHOTO: STOCK IMAGE
LAHORE:
Chinese investors have expressed keen interest in initiating joint ventures with their counterparts in Pakistan, which is an ideal destination for pouring foreign investment.
These views were expressed by the head of a 19-member Chinese delegation and Deputy Director General Bureau of Foreign Trade and Economic Cooperation of Guangzhou Municipality, Cao Zhicong, here on Wednesday. The delegation members were meeting businessmen at the Lahore Chamber of Commerce and Industry (LCCI).
Cao Zhicong said globalisation and regional integration had provided enormous opportunities for deepening cooperation between China and Pakistan. He termed Pakistan’s investment policies attractive, providing a lot of opportunities, which were encouraging Chinese entrepreneurs to come and invest in the country.
He said the Bureau of Foreign Trade and Economic Cooperation of Guangzhou Municipality would step up efforts to strengthen trade and investment cooperation between the two countries.
Calling China a key partner in economic development and trade, LCCI Senior Vice President Mian Tariq Misbah said assistance of Chinese enterprises, both technical and financial, in several development projects reflected that the relations were based on mutual trust and sincerity.
Misbah expressed hope that bilateral trade would touch $15 billion in the next few years. Although Pakistan’s exports to China have been growing gradually, trade has always been in favour of Beijing.
Pakistani goods that could be of particular interest to Chinese importers are carpets, leather and its products, surgical instruments, sports goods, fruits and vegetables, rice, pharmaceuticals and cotton.
“Most of our industrial units producing such goods are ISO-certified and are coming up with best-quality products at competitive rates,” Misbah said.
He suggested that joint ventures could be initiated in the areas of construction, hotel and tourism, SME cluster development, computer and cellular chips, textile and garments and light engineering.
