Tuesday, September 01, 2009


KARACHI: The rupee trimmed its loses against dollar on the currency market on Monday, experts said. On the interbank market the rupee gained 8 paisa versus the US currency for buying and selling at 83.02 and 83.07, dealers said.

In the First Asian trading yen rose to its highest in seven weeks against dollar, boosted by the end of election uncertainty following a thumping win for the opposition Democratic Party of Japan (DPJ) and then by dollar sell orders. The yen edged up after the landslide election victory on Sunday and then gathered pace as automatic dollar sell orders were triggered close to 93.00 yen per dollar, traders said.

OPEN MARKET RATES: The rupee inched up with a rise of five paisa in relation to dollar for buying and selling at 82.95 and 83.05 in process of trading, dealers said. The rupee also rose by 50 paisa in terms of euro for buying and selling at Rs 117.30 and Rs 117.80, they said.

Open Buying Rs 82.95
Open Selling Rs 83.05


Interbank Closing Rates: Interbank Closing Rates For Dollar On Monday.

Buying Rs.83.02
Selling Rs.83.07


(BRecorder)

Need more financial stories?? Visit Finance.KalPoint.Com


Tuesday, September 01, 2009


NEW DELHI: Pakistan is working towards developing a solution to climate change because it is in the country s interest, said Farrukh Khan, Director of Pakistan s Ministry of Foreign Affairs. In an exclusive interview with The News, he said: We are playing the role of a bridge builder and have been chairing meetings in the process. It s difficult, however, to quantify the achievements. Khan is Pakistan s top negotiator in climate talks and was here to attend the Media Briefing Workshop for Journalists on Climate Change organised by the Centre for Science and Environment (CSE), India s prestigious independent think-tank on environment. As many as 120 journalists from South Asia attended the two-day workshop. Asked what were his expectations for Copenhagen Conference in December, he said it was a million-dollar question since it was difficult to say at the moment that the participants would be able to work out a comprehensive solution during the talks. Talks on climate change in Bangkok from Sept 28-Oct 9 will determine what type of outcome one should expect at the Copenhagen moot, he said. He said climate change was a global problem that affects everyone and talks on climate change might need more time to reach a solution because of financial crisis. Financial requirements for mitigation run into billions of dollars, he explained.

As far as obligations are considered, they have to be met by developed countries because they are the major polluters, he added. The agreement on climate change hinges on financing commitments and transfer of technology, he said. Asked if melting of Tibetan glaciers due to the climate change coupled with drying up of River Indus due to building of large dams and barrages and scarcity of water in India and Pakistan could lead to a water war , as was being predicted in many studies, he said there was indeed an issue of water stress in Pakistan because its resources were shared and could lead to a conflict. But he hastened to add that there was always a silver lining because stress could also lead to cooperation. We waste 40 per cent of our irrigation water although ours is an agrarian economy, he said. Asked how could developing countries such as Pakistan could be optimistic that developed countries would agree to their demands on climate change given their dependence on the West, he said when nations define their interests they define them according to their national interests. In multilateral diplomacy if developing countries have similar interests they work together irrespective of differences in bilateral relations, he said referring to joint stand of Pakistan and India on climate change talks.


Need more financial stories?? Visit Finance.KalPoint.Com


Tuesday, September 01, 2009


KARACHI - Commercial banks earnings and profitability has sharply declined to Rs 26.7 billion during first half of calendar year 2009 as against earnings of Rs 38.8 billion in the corresponding period of last year. In terms of growth, the sector s profitability has seen a decline of 31 per cent during Jan-June 2009. This contraction attributed to higher provisions for Non Performing loans (NPLs) and higher impairment provisioning. After a depressing 1Q2009, earnings of listed commercial banks continued to remain depressed in 2Q2009 as well. However, the sector deposits and advances growth is projected to be around 7 per cent and 5pc respectively for the entire year of 2009. Despite improved NPL trend, analysts still expect 2009 to be a difficult year for the sector with earnings likely to decline by 8 per cent. It is important to note that since the last week of July, major listed banking companies have started to announce their 1H2009 financial results, according to which, commercial banks Net Interest Income (NII) increased by 19 per cent while Non Interest Income depicted sluggish trend during Jan-June this year. JS Research compiled this consolidated figure of sector profitability while taking up 24 banks, out of 25 banks listed at Karachi Stock Exchange for its analysis. BOP has been excluded as the bank is yet to declare its 1H2009 results.


According to JS Research, as of March 2009, sample banks represent more than 95 per cent of the total listed sector s deposits and assets.JS said that the decline in earnings was primarily driven by heavy provisioning for NPLs and higher impairment provisioning as total provisions for NPLs surged to Rs 35.0 billion (US$435million) as against Rs 20.2 billion (US$313 million) in 1H2008, an astounding growth of 74 per cent largely due to slowdown in economic growth. Moreover, stock market crash in the second half of 2008 resulted in impairment loss of Rs 4.2 billion as against only Rs 357 million recognized in 1H2008. Moreover, amid sharp decline in KIBOR, 2Q2009 has seen pressure on spread and resultantly NII. On a positive note, however, there seems to relative easing on the quantum of NPL acceleration as reflected by 45 per cent on quarter-on-quarter basis decline in incremental NPLs in 2Q2009. While profits remained subdued due to high provisions, Net interest income (NII) continued to post decent growth rising by 19 per cent to Rs 122.8 billion, amid higher spreads (7.6 per cent in 1H2009). In contrast, relatively week equity market conditions kept non interest income largely in check as it was recorded at Rs 40.7b similar to 1H2008. Fee income the largest component in non interest income recorded a growth of 9 per cent and stood at Rs 20.4b.


Need more financial stories?? Visit Finance.KalPoint.Com


Tuesday, September 01, 2009

Attention: open in a new window.
Need more financial stories?? Visit Finance.KalPoint.Com

Oil prices jacked up

Tuesday, September 01, 2009


ISLAMABAD - By jacking up the petroleum prices by four to eight per cent, the Oil and Gas Regulatory Authority (OGRA) Monday night added insult to injury of the masses who were already hard pressed under the general price hike that traditionally accentuates in Ramazan.

It is feared that the latest increase in the petroleum products notified by the OGRA on Monday effective from Tuesday September 1, 2009, would impact another 10 per cent increase in the commoners’ routine expenditures, especially food and mobility. The price hike, contrary to the government’s claims of declining inflation, has already increased household expenditures. Low-income people and daily wagers are finding it hard to manage their bread and butter. However, OGRA is bound to adjust the domestic prices of petroleum products with the international crude oil fluctuations after every month as per the standing policy of the government.

OGRA is moving in monthly adjustments as if the related circumstances were all normal despite the fact that a petition against the petroleum prices increase is still pending with the Supreme Court of Pakistan. During the last hearing, the apex court has asked the government to explain the utility of petroleum development levy as well as the incidence of double taxation on the petroleum products. To sheer bad luck of the people, the international crude has improved significantly during the outgoing month, at times crossing $70 a barrel. Consequently, OGRA announced new maximum ex-depot prices of petroleum products effective 01 September, 2009 that increased Supreme Petroleum from Rs 60.46 to Rs 65.26 a litre. Similarly HOBC soared from Rs 77.01 to Rs 80.39 a litre. Kerosene had a jumped up from Rs 57.91 to Rs 60.6, and Light Diesel Oil have surged from 53.27 to Rs 56.96 a litre. According to spokesman of the OGRA, the prices of Motor Spirit, HOBC, Kerosene Oil and Light Diesel Oil (LDO) have gone up by Rs.4.80 per litre or 8 per cent, Rs.3.38 per litre or 4.3 per cent, Rs.2.69 per litre (4.6 per cent) and Rs.3.69 per litre or 6.9 per cent, respectively.


Visit Finance.KalPoint.Com for latest financial stories...

Monday August 31, 2009


ATHENS: World unemployment will continue to rise in 2010 and perhaps in 2011 in more developed economies despite the expected recovery, International Monetary Fund Managing Director Dominique Strauss-Kahn said on Sunday.

"We must continue to work hard to ensure that a sustainable recovery comes indeed in the first half of 2010. But, despite the recovery, unemployment will continue to rise in 2010 and perhaps in the more developed economies even in 2011," he said in an interview with the Greek Kathimerini newspaper.

He warned against taking the recovery for granted, saying risk still remained. "The basic short-term risk is for the recovery to stop, something that could be caused by a series of negative developments," he said.

"A possible premature exit from a loose fiscal and monetary policy constitute a risk, if fiscally supported growth is erroneously seen as a sustained recovery." He said another key concern is that higher oil prices could hinder recovery.

Visit Finance.KalPoint.Com for latest financial stories...


Attention: open in a new window.

KARACHI : Trade Development Authority of Pakistan (TDAP) has invited expression of interest (EoI) for development, maintenance and hosting of its web portal. According to TDAP here Saturday, the pre-qualified, reputable and experienced firms will be eligible to apply for this task. Bidding will be held on September 10 at its head office.



Visit Finance.KalPoint.Com for latest financial stories...






DUBAI : The world economic crunch has hit the Middle East too, but is not deterring many Muslims from throwing traditional banquets to break the fast each dusk during the holy month of Ramazan, even if it means cutting back on other expenses. But for some, such as in the Gaza Strip, the crushing weight of poverty and an Israeli blockade is too much for even the most determined. In the oil-rich Gulf region, supermarkets have been crammed with customers since Ramazan began last week, shopping for food and drinks in preparation for the banquet, or iftar, sometimes served in lavish tents or hotel ballrooms. Some are making an exception and running budget deficits, because Ramazan is not only a time for prayer and spiritual reflection but also for social bonding over meals with family and friends. This is the only month when families get together for banquets. They do not care about the crisis; people forget about their worries during those get-togethers, Emirati housewife Umm Saeed said in Dubai. People are inviting each other over for food more often during this month. It is as if they are competing against each other for who buys the most things and cooks the most food. Mashael Mekki, a Sudanese living in Dubai said: Food is food no matter if there is an economic crisis; people are buying and cooking the same quantities as last year. It s Ramazan; people are hungry. I am buying the same things as I did last year, she said, adding that the same people who have invited us last year are also inviting us this year. The same sentiment was shared by people in neighbouring Qatar. Mohammed al-Sada, a 32-year-old government clerk, said cutting back on spending is unthinkable because Ramazan has a special status.

There is merchandise that should be bought during Ramazan as is the case every year even if I have to depend on the credit card. Perhaps I will economise after the month is over in order to compensate for the budget deficit, but we are not ready to change our habits during Ramazan. Customers throng cafes and restaurants, staying up late, smoking shishas (water pipes), drinking tea or eating sweets and delicacies while chatting and exchanging news. But in the Gaza Strip, where an Israeli offensive killed hundreds and flattened vast swathes of the territory at the new year, Ramazan reminds people of the severe poverty they live in as a result of an Israeli blockade. Rashad Abu Aisha said this is the worst Ramazan her family has ever seen, with widespread shortages and skyrocketing prices at the local market. The war has added so much to our grief; it s more than we can bear, he said. Even those whose homes and loved ones were spared by the fighting have faced rolling shortages and the highest prices in memory, as they have had to rely on goods smuggled in through tunnels from Egypt. As a result, the festive Ramazan lamps that line the streets of cities across the Muslim world are, in Gaza, largely confined to store-fronts. Sami, a 40-year-old father of seven, says the little money he is able to scrape together will have to go for supplies for the coming school year. People in Gaza never know when the next disaster is going to come and how they are going to deal with it, he says. Most people are without work and without a source of income. Shopowners, meanwhile, say that while they are able to fill their shelves with smuggled goods they have few customers. Generally speaking, consumers in the region have complained of higher prices of even basic foods. I have noticed an increase in the prices of staple foods, the foods we use in our everyday meals, such as rice, vegetables, bread and meats. They are raising the prices on things that we need the most, said Umm Khalifa in Dubai. I think the rise in prices is unjustified since they know that during Ramazan we consume more so this way they are creating more pressure on households. This is common every Ramazan and is, in part, due to higher demand. And as always, this prompts governments to take measures to clamp down on price hikes.

Visit Finance.KalPoint.Com for latest financial stories...