Advisory committee: With low reserves, EAC advises against Euro bond

Currently the private sector holds more foreign currency reserves than the State Bank, something which will undermine the bank’s regulatory role. PHOTO: FILE

ISLAMABAD: 

The country’s leading economists have warned the government against tapping the international bond market with only $2.8 billion reserves in hand, urging it to wait for an appropriate time or else be ready to pay a higher price.

Independent economists who gathered in Q-Block – the seat of the finance ministry− under the umbrella of the Economic Advisory Council (EAC) also advised the government to present a realistic picture of the foreign currency reserves and exclude those held by individuals and commercial banks.

The issue came up for discussion when an upbeat Finance Minister Ishaq Dar shared the government’s plan to increase foreign currency reserves to $10 billion by next month. Economists sought an explanation of whether the government was also calculating privately held reserves as its own.

The minister, who is also chairman of the EAC, said that historically the reserves of commercial banks were treated as part of the total. Economists including Dr Abid Hassan and Dr Ashafque Hassan Khan advised the government that the actual reserves held by the State Bank of Pakistan (SBP) will be the determining factor in determining the price of the Pakistani bond by international investors.

The federal government is planning to float Euro bonds next month to raise money aimed at building foreign currency reserves, which dropped to a 13-year low of $2.8 billion by February 7. The $2.8 billion reserves are inclusive of the $500 million China deposit and forward contract obligations.  Even after adding the reserves held by commercial banks, the country’s total reserves were $7.5 billion.

Foreign investors will critically evaluate the payback capacity of the government, though, like any sovereign country Pakistan has never defaulted on its international obligations.

By the end of March 2014, a sizeable increase in foreign exchange reserves is anticipated with a projected figure of more than $10 billion foreign currency inflows adding up steadily, according to a handout issued by the Ministry of Finance.

The members of the EAC appeared dejected and marginalised during the second meeting of the EAC, as they were not clear about why the government constituted the EAC and what role they would have to perform.  Dr Sania Nishtar urged the government to define the role of the EAC and layout its expectations.

In the second meeting, economic experts were expecting that they would be asked to give their input on specific issues, according to a participant of the meeting who requested anonymity. During both meetings, most of the time was consumed by government officials and members, he added.

Finance Secretary Dr Waqar Masood gave a presentation on expenditure trends over the last five years, while Federal Board of Revenue chairman briefed the EAC members about the measures that the tax machinery wanted to take to improve an extremely narrow tax base.

It seemed that economists were sitting in a General Assembly, listening to one speech after another, but the problem of not taking decisions in the General Assembly persisted, said another member of the EAC.

The EAC members also urged the government to strengthen the country’s debt management office and appoint an independent but professionally sound person as its head, unlike the previous Director General Debt who worked more for protecting the interests of his previous bosses than for the state.

The EAC members advised the government to ensure authenticity of the official statistics, as the latest figures of growth in Large Scale Manufacturing (LSM) were contrary to growth trends observed in recent months.

Gas theft: Provinces to pocket Rs33b after UFG ceiling reversal

The Lahore High Court observed that Ogra had raised the ceiling for gas companies for 2009-2010 as a one-time relief. PHOTO: FILE

ISLAMABAD: 

Following a revision in the ceiling of unaccounted for gas (UFG), provinces are to receive Rs33 billion by squeezing money from the gas utilities, a move which will hit the federal government and possibly lead to the bankruptcy of gas companies.

Sources in the petroleum ministry told The Express Tribune that the National Accountability Bureau (NAB) has put the federal government in jeopardy.

Previously, Oil and Gas Regulatory Authority (Ogra) had decided to raise the UFG ceiling from 5% to 7%, enabling gas utilities like Sui Northern Gas Pipeline Company (SNGPL) and Sui Southern Gas Company (SSGC) to pocket Rs44 billion during the three-year period.

Now, the Lahore High Court (LHC) has reversed the ceiling to 5%, and Ogra will have to make adjustments in the accounts of gas utilities to recover the Rs44 billion which went into the federal treasury, being a major shareholder of the gas companies.

Earlier, Ogra had planned to get the money back from gas companies over a three-year period but SNGPL and SSGC informed the regulator that it could not make the adjustment in three years according to audit rules. Now, while giving its decision on revenue requirement of gas companies for the year 2013-14, Ogra is to make adjustments in the accounts of these gas companies by recovering Rs33 billion, leaving the federal government in a fix.

Sources said that after accounts adjustment, an amount of Rs33 billion will go to the provinces on account of gas development surcharge (GDS).

“The federal government will either have to give bailout packages to these companies to pay this amount to the provinces or the companies will go bankrupt,” sources said, adding that the government had already made a commitment with the International Monetary Fund (IMF) to not give any bailout package.

Sources maintained that the consumers will also not benefit from this adjustment as NAB had said that the raise in UFG ceiling was a loss of GDS, and the federal government will be paying it.

The Lahore High Court (LHC) has also dismissed a petition filed by SNGPL to maintain the UFG at 7%.

The total financial impact of the court’s stay order on SNGPL for the financial years 2010-2011, 2011-2012 and 2012-2013 was Rs23.1 billion. Out of this amount, Rs9.34 billion has already been adjusted based on the dismissal of the order by LHC.

In the case of SSGC, officials said the amount is Rs21.74 billion. It is interesting to note that NAB had also filed references against heads of those companies which obtained the stay order against lowering the ceiling of UFG.

Regarding the UFG ceiling, LHC observed that Ogra had raised the ceiling for gas companies for 2009-2010 as a one-time relief. The ceiling was raised from 5% to 7% after the government revised the consumer cost criterion for extension of gas schemes to new districts, towns and villages in July 2008.

The government had revised the per consumer cost in Punjab and Sindh from Rs20,000 to Rs54,000, Rs40,000 to Rs108,000 in Khyber-Pakhtunkhwa and Rs100,000 to Rs270,000 in Balochistan.

The court observed that the controversy regarding UFG started with the determination for the period 2009-2010. At that time, the UFG ceiling was set at 7% for SNGPL which was a one-time determination deviating from the given benchmarks. “There is nothing on record to show that respondent number 1 (Ogra) has acted unfairly, unreasonably or contrary to the law and principles of justice,” LHC observed, before dismissing the petition

ZonG Circle offers Pakistani Youth a chance to win BIG

ISLAMABAD – ZonG, Pakistan’s fastest growing telecom network and a part of World’s Largest Mobile Operator China Mobile Communication Corporation (CMCC) has  been taking giant leaps in the competitive market of telecom services by introducing customer centric services for different segments of mobile phone users along with expanding its network at an exponential rate.

Apart from offering high quality customer friendly mobile services, ZonG has directly invested a lot in Pakistan for the growth and prosperity of the society as a whole. As a company which values its customers, ZonG has always been at the forefront of offering innovative offers that are not just profitable for the company but also attractive to the customers.

In continuation of this tradition to reward its customers for their loyalty, ZonG has come up with another consumer promotion drive under its Youth Brand Circle titled “Circle sey Jeeto – Aik Baat Phir”. Circle being the fastest Growing Youth Brand of Pakistan has seen tremendous progress since its inception. The “Hamesha Together” tagline gives the customers the liberty to stay connected with their friends at very affordable rates. The campaign will see lucky customers win Pakistan’s first Hybrid Sports Car, the 1500 CC Honda CRZ along with many other exciting prizes including stylish Heavy bikes like Honda CBR 500 and Honda CBR 150. This promotion, which is effective from 12thFebruary, 2014 till 15th March, 2014 is only for Circle pre-paid subscribers who have activated their Circle Club Promotion.

Speaking about this latest promotional offer, Mr. Amees Ahmed, Dy. Director Marketing, ZonG said, “As important it is to ensure your customers have an amazing service experience, it is also important to make sure they are constantly rewarded for their loyalty. In times when competition is tough and as service providers you are looking for new ways to keep current customers satisfied, a need arises to develop a special relationship as a company with the community you are set up in. At ZonG, we not only see this as a need, but as a want from our side as our success is only because of our customers; this latest offering is in continuation of this very want. After the recent success of our Circle Heavy Bike campaign, we decided the time was right to reward our customers even more and remind them that as a company we are always on the look out to show our appreciation.”

On a separate note, Zhao Peng, CCO, ZonG added, “Our subscriber base has crossed the 24 Million mark and we are the fastest growing network in Pakistan at the moment. Through this promotion, we want to express our gratitude towards our customers for the support they have shown us in all these years of growth.”

The “Circle sey Jeeto – Aik Baat Phir” campaign is not the first time that the company has decided to reward its youth customer base as it follows the recently concluded Circle Heavy Bike Campaign. Circle is designed especially for the youth of the nation and includes very affordable rates, a fast internet connection and virtually free calls and unlimited SMSes . Circle Club gives the freedom to stay connected with all your friends with Pakistan’s Lowest Youth-Youth Calls at 90 paisa/Hr coupled with Unlimited Free SMS within the Club. The offer is based on direct usage of Circle Club promotion. Zong Customers can join Circle Club by dialing *456#.

Cyber ‘Gundas’ get ready for punishment

ISLAMABAD – Cyberbullies should have to control themselves as Pakistan is about to finalize first ever cyber crime bill.

“A comprehensive cyber crime bill has been prepared,” Pakistan Information Technology Minister Anusha Rahman revealed.

The number of cyber crimes is on rise in the country with more and more population is turning to social media, online mobiles and internet in general.

Federal Investigation Agency, responsible to investigate the cyber crimes, is helpless to control as there is sufficient law in the country.

The minister, who was chairing a E-Crimes bill 2014 meeting, was hopeful about the early approval of the bill.

She was of the view that, if done, it would be a milestone for the ministry. The bill will be presented before the cabinet soon.

A home of over 100 + million mobile devices, Pakistan is one of the fastest growing internet usage country in the world

Samsung Galaxy S5 rumors and possible specs revealed

Seoul: As Samsung is about to unveil its flagship smartphone Samsung Galaxy S5, now new report revealed device’s speces and features

The Samsung Galaxy S5 is set to be one of the biggest smartphone launches of 2014. A new Samsung event invitation has hinted we’ll see a redesign of Touch Wiz with the Galaxy S5, while a leaked picture supposedly showing the S5′spackaging provides another set of possible specs.

Samsung is the main driver of innovation in the smartphone market today.

The annual release schedule for smartphone flagships has become pretty standard in recent years. The Galaxy S2 was unveiled in February and released in May 2011. The Galaxy S3 was revealed and released in May 2012. The Galaxy S4 was shown off in March and released in April 2013. However, it looks like Samsung is pushing its next phone forward after disappointing S4 sales.

It also doesn’t hurt that Samsung sold an estimated 20 million Samsung Galaxy S4s within two months.

Samsung Galaxy S5 release date

Samsung looks set to hold the first of its annual keynote events Samsung Unpacked at Mobile World Congress. The company is unlikely to hold another major event in March, so it looks increasingly like that Samsung will show off the Galaxy S5 for the first time at the show.

It looks as though our prediction could well be correct with the Samsung Galaxy S5 release date being set for April after a Samsung executive confirmed that the S5 would launch alongside the Galaxy Gear 2 at the same time it launched the S4 last year.

As for when you’ll be able to get your hands on it? If we were betting people, we’d say the last Friday of April – so Friday, April 25th.

Samsung Galaxy S5 specs

Relatively little is known about the Samsung Galaxy S5’s specs. Speaking to Korea Times, Samsung’s co-CEO Shin Jong-Kyun has promised the company will match the processor found in Apple’s new iPhone 5s.

Despite that promise, it appears that Samsung may not be matching it when it comes to it being 64-bit. According to KGI Securities’ Ming-Chi Kuo, the Samsung Galaxy S5 will come in two varieties, but neither will have a 64-bit processor. The Prime is said to be coming with a Samsung octa-core Exynos 5430 processor, while the Standard model is said to be coming with a quad-core Snapdragon 800 processor.

While it may not match it in terms of the amount of bits, if it turns out the Prime model does come with a octa-core processor, Samsung could out do Apple in sheer brute force. The lack of 64-bit support could also have something to do with both models only coming with 3GB RAM, according to Ming-Chi. The main reason for moving up from 32-bit chips is to break through the 4GB limitiation.

If Samsung is planning on sticking with 3GB of RAM, it makes more sense for it to opt for raw power, rather than add a feature which isn’t really going to be used.

Samsung had confirmed that it is working on 64-bit processors for its 2014 handsets – although the company stopped short of actually announcing which handsets they were. If it turns out that Ming-Chi is right – and he has a history of being right – it may mean we have to wait until the Galaxy Note 4 before we see it.

To be honest, it would make more sense for the time being for the Galaxy Note 4 to debut 64-bit chips. Along with giving the company more time to perfect the technology (see below), it would also make more sense to pack its powerhorse phablet with more RAM – and so benefit from a 64-bit chip.

Stephen Woo, president of Systems SI at Samsung electronics told CNET that the company is taking a “two-step approach” to developing 64-bit chips.

According to Woo, the firm is planning on developing a 64-bit chip based on designs from ARM. Once it has mastered that technology, it will design its own chip. It is believed it will be the latter chip that ends up in both of Samsung’s 2014 flagships smartphones.

“We are marching on schedule,” Woo said Wednesday. “We will offer the first 64-bit [processor] based on ARM’s own core. After that, we will offer an even more optimised 64-bit [processor] based on our own optimisations.”

One other snippet of information we have is that the Samsung Galaxy S5 will supposedly feature fast charging capabilities. According to sources speaking with PhoneArena, the next Galaxy will arrive with a new type of lithium ion battery that will hold 20 per cent more energy than the S4 and can be fully charged in just two hours.

Eye scanning security?

According to AndroidSAS, the Galaxy S5 could one-up the fingerprint scanner on the iPhone 5S and take the lead in biometric security with an eye-scanning sensor. The idea is that S5 owners will be able to scan their eyes in order to unlock their smartphones. This would supposedly offer a higher level of security, but the sources are unnamed and there’s nothing to substantiate the rumor. We’ll be sure to keep an eye on this one.

14036251-laser-scanning-eye-close-up

Fingerprint scanner, or not?

We’ve already seen a report from the Korea Herald in which a Samsung official is quoted as saying “We never officially admitted that Samsung was weighing the fingerprint system and Knox for Galaxy Note 3 for security functions. We are not yet developing the technology.”

Analysts at KGI don’t agree, and included biometric fingerprint scanning in a recent list of expected S5 specs. Of course, if the eye scanning rumor has any truth to it then fingerprints are probably out the window.

Galaxy S5 could run Tizen OS

Samsung has not given up on its own Tizen operating system. The International Business Times reckons the company may release a Tizen version of the Galaxy S5. Would Samsung release two different versions of the S5, one with Tizen and one with Android 4.4 KitKat? It doesn’t seem likely, and we don’t think Samsung is ready to ditch Android for its own platform yet. Maybe the Tizen version may be limited to specific markets, if it exists at all. We’ll have to wait and see.

Stronger, more efficient battery

An anonymous source told PhoneArena.com the Galaxy S5 will have a slightly larger, 2900mAh battery inside. The interesting part is the cell should be the same size as the S4′s 2600mAh battery, as it may use a new technology which would see it store 20-percent more energy without physically increasing in size. More standby without sacrificing size and weight? Sign us up, but battery tech doesn’t move very quickly, so we’ll remain skeptical on this one until Samsung tells us otherwise.

Waterproof comes standard

Smartphones are getting tougher. At the start of this new flagship cycle the Xperia Z made a splash with its waterproof and dustproof credentials. Samsung released the Galaxy S4 Active as a waterproof variant of its flagship, but ET News thinks the Galaxy S5 may take things one step further and be waterproof and dustproof straight out of the box. According to the report, “industry sources” say the Galaxy S5 will meet the same standards as the S4 Active, which will bring into line with some of the other top Android smartphones.

samsung-galaxy-s4-active-in-water

That’s it for the Samsung Galaxy S5 rumor roundup, but come back soon because we will update this article with fresh rumors as they crop up.

Samsung Galaxy S5 looks

The Samsung Galaxy S5 will sport an entirely new design according to Samsung Mobile executive vice president Lee Young Hee. Speaking to Bloomberg she confirmed that the S5 would be a bold departure after consumer feedback suggested that people didn’t really see the difference between the S3 and the S4.

This would certainly fit with the rumour that claimed Samsung is looking to move away from using polycarbonate back covers for its phones

14 Amazing facts of Technology world

ISLAMABAD – In today’s world, technology is essential part of our lives, many of us rely on the gadgets to do and complete our daily tasks but very few of us know about the basics of the tech universe.

PakistanTribe’s Saher Afshan collected interesting facts about the cyber space and its players. Read and Share it with your friends.

1. Amazon, originally a printed book seller company, now sells more e-books than printed books.

2. The first domain name ever registered was Symbolics.com.

3. 80% of all pictures on the internet are of naked women

4. Tim Berners-Lee coined the phrase “World Wide Web” in 1990.

5. U.S. President Bill Clinton’s inauguration in January 1997 was the first to be webcast.

6. Google uses an estimated 15 billion kWh of electricity per year, more than most countries. However, google generates a lot of their own power with their solar panels.

7. Bill Gates, the founder of Microsoft was a college drop out.

8. Bill Gates house was designed Using a Macintosh computer.

9. About 1.8 billion people connect to the Internet, only 450 million of them speak English.

10. In 2012, approximately 17 billion devices (which includes computers, tablets and mobile) connected to the Internet.

11. Sweden has the hightest percentage of internet users, they are 75%.

12. Did you know that Email was already around before the World Wide Web came?

13. Up until the 14th of September, 1995, domain registration was free.

14. One of the world’s leading computer and computer peripheral manufacturer Hewlett Packard was first started in a garage at Palo Alto in the year 1939.

Spanish biker travels 13 countries to see bright face of Pakistan

Slowly but surely, a Spanish tourist has reached Multan on his bike after a tour of 13 countries.

The tourist, who has come from Spain on his bike after a long tour of 13 countries on his bike, is getting extreme attention of people.

When he reached Multan, Mastoong tragedy occurred just after a day, and after that he was advised to return but without any fear, he courageously decided to continue his journey .

After reaching Multan, ‘Kholeo’ said that after the terrorists’ act he thought about return but his host motorcyclist, Iqbal Ghanghla, showed him the bright face of Pakistan and he got tied with more travelling plans.