Monday, 3 March 2014

New attraction in town: In midst of violence, people show appetite for entertainment

Based on average turnover per show, the programme has so far grossed over Rs80 million (on the conservative side) and might continue for another month before moving to other cities. PHOTO: FILE
KARACHI: 
Violence, targeted killings, strikes and protests are some of the words that seem to have replaced Karachi’s long-held description: the city of lights.
But parallel to this non-stop violence and feeling of insecurity, there exists a huge demand for entertainment businesses. In other words, the country’s largest metropolitan city continues to offer business opportunities for those willing to take risks and bet money on this consumer base of 20 million people.
Success of the Dolphin Show – a recent addition to the city’s recreational spots – clearly reflects people’s growing appetite for every entertainment opportunity that offers a temporary escape from an otherwise tense city.
The programme’s chief engineer and one of the performers – both Russians – are not only performing publicly but also exploring the city during breaks. They have also visited places commonly referred to as no-go areas, according to an official.
Exploring Karachi alone may not be a good enough reason to visit the city. They are here for business of course.
The fun-filled show – that features colourful performances by a sea lion, a whale and a dolphin – has a capacity to host up to 3,000 people. Over one-and-a-half-month old, it continues to attract decent traffic, roughly 75% of the seating capacity as witnessed by the writer, even on working days. The weekend traffic is certainly higher.
Exact figures for the business could not be collected. However, based on average turnover per show, the programme has so far grossed over Rs80 million (on the conservative side) and might continue for another month before moving to other cities.
“We get Rs600,000 to Rs800,000 in ticket sales for a single show,” the programme’s General Manager Finance and Marketing Ali Raza told The Express Tribune.
The turnover range includes both the weekday and weekend traffic. However, if the average amount per show is taken into account, this translates into Rs2.1 million a day (based on three shows a day) and at least Rs84 million since January 16 when it opened for the public – excluding Mondays when there is no show.
Though satisfied with the city’s response to the show, Raza says it is good but not ideal. Observers, however, say the show has been a big success. The organisers have kept the ticket prices (Rs550 for adults and Rs350 for children) well below international standards for a dolphin show of this calibre, the observers say, their revenues, therefore, may not be a true reflection of the traffic they attracted.
Raza didn’t share the breakdown of costs or profit margins. But security costs involved cannot be ignored in organising such a programme. The Dolphin Show, too, has multiple layers of security checks both manual and technological and an army of guards to manage a large crowd.
Though a good example, the Dolphin Show is not the only entertainment business that has tasted success amid all the violence and bad news coming out of the city.
The cinema business – the most popular form of entertainment – has already made it big in recent times. Waar, the highest grossing Pakistani movie, made more than Rs230 million in just three months last year and the Indian movie Dhoom 3 is said to be doing even better.
Though there is a lot of demand for entertainment and recreation in the city, there exists a huge gap in terms of supply.
There are a lot of things that can be done on the entertainment side, Raza said. “It’s about time we move beyond the Lucky Irani Circus and introduce new concepts along international standards.”

Export Development Fund: Let it go

Export Development Surcharge is levied on all exports at 0.25% of export proceeds and was imposed in 1999 to strengthen and develop infrastructure. PHOTO: FILE
ISLAMABAD: 
Since 2006, the Ministry of Finance has accumulated Rs19 billion on account of Export Development Fund (EDF), lying unspent in its kitty. This is contravention of Export Development Fund Act Amendment 2005, under which the Ministry of Finance is obliged to transfer the amount collected under Export Development Surcharge to the Ministry of Commerce in the following year.
Export Development Surcharge is levied on all exports at 0.25% of export proceeds and was imposed in 1999 to strengthen and develop infrastructure for promotion of exports.
To date, the business community has contributed around $600 million under this surcharge. The Ministry of Commerce has not released any public report on the use, output and results of this contribution.
The business community remains suspicious about the appropriate usage of the fund. According to a news report, the president of the Sialkot Chamber of Commerce and Industry has alleged that EDF proceeds have been used for general infrastructure development instead of boosting exports.
According to an independent report on EDF, in many cases, as high as 80-90% of the project budget goes to salaries and administrative costs. Take for instance establishment of a gems and jewellery (diamond cut and polish) training institute, a project proposed in the 62nd meeting of the board of administrators of EDF Fund held in 2013.
Total budget of the project is Rs27.292 million, of which Rs21.792 million (ie 79.8% of the total cost) is for administration.
Under EDF, businesses largely propose projects such as exhibitions, marketing campaigns, establishment of trade offices and alike. These projects are important in providing a capable workforce or facilitating export promotion activities. However, the impact of such projects is difficult to quantify because of non-tangibility of output.
Typically, projects are approved by the board of administrators, which is chaired by the minister of commerce. The business community is represented on the board through presidents of business associations but the control of the fund lies with the ministry.
The report on EDF mentions scores of incidents of misallocation of funds, particularly on account of subsidy and freight reimbursement to ghost exporters. According to a news story, the FIA has registered 50 cases involving Rs5 billion paid to phony companies during the previous government’s tenure.
The current structure of the fund creates a lot of room for political and bureaucratic discretion. A recent example is allocation of funds for the Saarc Chamber of Commerce and Industry, which is not a direct contributor to the fund, which raises questions over the legitimacy of this decision.
Despite the initiatives and allocation of funds through EDF, Pakistan is losing its market share year after year, which is increasing the share of its competitors including India and Bangladesh. Thus, EDF has largely failed to serve the purpose for which it was enacted.
New setup
Given the systematic incentives built in the structure for misallocation and misappropriation, the government should ponder over an amendment in the Act to abolish the board of administrators and replace it with a new non-profit company under Section 42 with the exclusive mandate of export development. Its board of directors should comprise representatives from the private sector, government and academia whereas the managing director should be drawn from the private sector on the basis of his professional expertise.
After the new setup, proposals for use of the fund on a competitive basis should be sought from the private sector including business associations. These proposals should be carefully evaluated for their contribution to boosting the country’s exports.
The most important lesson is that the government does not, and cannot have, adequate knowledge to make reliable decisions on priorities of different sectors. Therefore, such decisions on allocation of capital should best be left to the market forces.

A Heartbreaking Look At The Exact Moment Leonardo DiCaprio Didn’t Win An Oscar Again

Leo sees his name up on the screen with the other nominees for the Academy Award for Best Actor.

Leo sees his name up on the screen with the other nominees for the Academy Award for Best Actor.
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And he’s excited. He’s like, Hey, that’s me up there.

And he's excited. He's like, Hey, that's me up there.
AMPAS

He thinks to himself, Heh, this is our year L.D. This is ouuurrrrr year.

He thinks to himself, Heh, this is our year L.D. This is ouuurrrrr year.
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Then Jennifer Lawrence announces that the Best Actor award is actually going to Matthew McConaughey, for his role in Dallas Buyer’s Club.

Then Jennifer Lawrence announces that the Best Actor award is actually going to Matthew McConaughey, for his role in Dallas Buyer's Club .
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And then… it sinks in. And Leo is forced to give Matthew a hug.

And then... it sinks in. And Leo is forced to give Matthew a hug.
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It’s awkward. It’s hard for him.

It's awkward. It's hard for him.
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He holds it a little too long…

He holds it a little too long...
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“It was supposed to be mine.”

"It was supposed to be mine."
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And then he sucks it up, and puts on a brave face.

And then he sucks it up, and puts on a brave face.
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Maybe next year, bud.

Maybe next year, bud.

Suarez is pushing Messi and Ronaldo really close - Liverpool captain Gerrard

Suarez is pushing Messi and Ronaldo really close - Liverpool captain Gerrard
After the Uruguayan got back to scoring ways against Southampton, the Reds midfielder declared his belief that his team-mate is firmly among the best players in the world
Liverpool captain Steven Gerrard believes that Luis Suarez is up there with Lionel Messi and Cristiano Ronaldo as the best player in the world.

The Uruguayan scored his 25th goal and registered his 11th assist of the season against Southampton on Saturday, playing a key role in the Reds' 3-0 win, and the midfielder was left awestruck by his performance.

"I've run out of words to describe him," Gerrard told reporters. "We're blessed in this country to have some really top forwards but for me, without being biased, he’s the best.

"I've said it many times, I look at Messi and Ronaldo and, yeah, they're world-class players but, outside of that, you have [Zlatan] Ibrahimovic and Luis Suarez, who are pushing those two really close.

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"Performances like this, where he hasn't scored for four or five games but he's getting assists, causing so many problems. He's relentless. He's a winner, he's a killer and we're lucky to have him."

The skipper added to the Liverpool Echo: "Luis showed once again that he's an absolute genius. People had been talking about him going five games without a goal but his contribution to the team has never wavered. 

"He is very unselfish. At times he's been asked to play in a wider role and he has shown what a great team player he is. Even when he wasn't scoring, he was still terrorising defenders and creating goals for us.

"It was a great way for him to celebrate 100 league games for the club. His record is phenomenal."

The win at St Mary's Stadium moved Brendan Rodgers's side up to second in the Premier League and Gerrard believes that their underdog status could well see them win the title.

"I think it's very nice people are talking about us and we're in the title race. There's no getting away from that, we're in it," he declared to the press.

"But it's important we stay calm, keep taking it game by game and try to win as many games as we can.

"Manchester City and Chelsea are still the favourites because they have that experience of going to win it but I think both know, listening to Jose Mourinho and Manuel Pellegrini, that we’re a big threat because we've got no Europe and we can be fresh every game.

"Yes, it does suit us at the moment being underdogs. What suits us as well is we’ve a lot of time to prepare."

Wenger confirms Arsenal interest in Real Sociedad starlet Griezmann

Wenger confirms Arsenal interest in Real Sociedad starlet Griezmann
The forward has earned a France call-up on the back of his impressive goalscoring form in La Liga this season and the Gunners boss admits that the 22-year-old is a transfer target
Arsene Wenger has confirmed that Arsenal are monitoring Real Sociedad forward Antoine Griezmann

The 22-year-old has been in impressive form so far this season, scoring 19 goals across all competitions to help his side into sixth place in La Liga.

Arsenal remain in the market for a striker to reduce some of the goalscoring burden on Olivier Giroud, having failed with January moves for Alvaro Morata and Miroslav Klose.

Speaking to Telefoot TF1, Wenger admitted that the French winger is of interest to the Gunners, stating that they had been "following Antoine Griezmann for a long time".

Griezmann is currently La Liga's third-highest scorer behind Cristiano Ronaldo and Diego Costa and his exceptional form has earned a first call-up to the France side for their friendly with Netherlands.

Arsenal, meanwhile, could not find the target on Saturday as they slipped to a 1-0 defeat at Stoke, leaving them four points behind leaders Chelsea, with Wenger left to bemoan his side's inability to cope with the Potters.

"You have to give credit to Stoke, they defended well with resilience and they made the game very physical," he told reporters.

"We knew before the game, they have the highest number of fouls in the Premier League but we didn't cope well enough with it.

"Honestly I don't want to talk about the referee. I have nothing to say about [fouls on Giroud], I'm long enough in the game to make my own judgement and I prefer to concentrate on our performance."