Guardiola: Bayern won't sign many players

The Bavarians have already secured the future of Robert Lewandowski and are set to add Sebastian Rode, but the Spaniard is not expecting much transfer activity

Bayern Munich coach Pep Guardiola says that he is only planning minor changes to his team this summer.

The German champions are set to sign Robert Lewandowski on a free transfer from Borussia Dortmund at the season's end and are likely to add Eintracht Frankfurt midfielder Sebastian Rode.

However, the former Barcelona coach says the core of his XI will remain the same at the end of the summer transfer window.

"I think the basis of the team will be more or less the same," he told reporters.

"There will be just a few additions."

Bayern face Wolfsburg in the Bundesliga this weekend and Guardiola says the vast majority of his players are fit to take on Dieter Hecking's men, whom he is refusing to underestimate, despite their 6-2 loss to Hoffenheim last week.

"All the players are fit whenever the Champions League is coming," he joked. "It's the case in other big clubs. I don't know why.

"Wolfsburg are one of the big teams in the league. They are a dangerous opponent, despite their 6-2 defeat last week.

"They have some very good players. It won't be easy. It will be a big challenge, and we can take another step towards defending the title."

Barcelona's future secure with Ter Stegen, but is the German ready for the present?

The Gladbach goalkeeper will move to Camp Nou in the summer to replace Victor Valdes but must step up to be good enough for the Blaugrana first team

COMMENT
By Enis Koylu

Ever since Victor Valdes' announcement that he would leave Barcelona at the end of his contract in June 2014, one man had been the overwhelming favourite to take the Spain international's No.1 jersey: Marc-Andre ter Stegen. 

And on Friday, Goal confirmed that Barca had reached an agreement with Borussia Monchengladbach to sign the goalkeeper this summer for a fee in the region of €9-12 million plus two friendly games.

Since breaking into the Gladbach first team three years ago, Ter Stegen's stock has continued to rise and rise. He was first thrust into the first starting XI in the place of Logan Bailly as a teenager and helped Lucien Favre's side survive relegation against the odds. He was the star of the show, along with Marco Reus.

The following season saw Gladbach produce more brilliance. Stunningly consistent, they pipped Bayer Leverkusen to fourth place in the 2011-12 Bundesliga. Ter Stegen was again one of their key players - only Bayern Munich had a better defensive record in the division - and was duly rewarded with an international call-up shortly after his 20th birthday.

The following term was far more of a disappointment for the Foals, who dropped to eighth place in the table and conceded twice the number of goals they had the previous season, while failing to make it into the Champions League proper after slipping to a disheartening defeat to Dynamo Kiev in qualifying.


One for the future? | The youngster has failed to impress for Germany despite his talent
So, the question remains: is a 21-year-old of such little top-level experience ready to play for one of the biggest clubs in the world and, beyond that, fill the void of a club hero like Valdes, who is arguably enjoying his finest season with the Blaugrana?

Ter Stegen has never featured in the Champions League proper and was hardly a bastion of stability against the Ukrainian outfit in qualifying, conceding a slack goal at his near post.

Beyond that, Germany have lost in each of his three appearances for the national team. The first was a goal-fest, a 5-3 loss to Switzerland, with the young keeper culpable for one of the strikes. 

Three months later, he was thrust into action against Argentina after Ron-Robert Zieler was dismissed and his first action was to save a Lionel Messi penalty. Things went downhill from there, though, as Germany slipped to a 3-1 loss.

The nadir was in the post-season tour of the USA. When given a chance to impress against the hosts, Ter Stegen failed miserably, scoring a comical own goal. Joachim Low's side have conceded 12 times in his three caps.

Playing for Barca is an entirely different proposition to international friendlies and Champions League qualifiers, of course. While Gladbach have a proud history and strong rivalry with the likes of Bayer Leverkusen and Borussia Dortmund, nothing he has experienced can compare to the cauldron of El Clasicoor the latter stages of the Champions League.

That said, the only way he will improve in big game situations is to play in critical matches and there is little doubt that he has all the ability to become one Germany's great goalkeepers. One of them, Oliver Kahn, is of the opinion that he could become one of the best ever.

"It is really interesting to see how consistent his performances are considering his age," the 2002 World Cup hero said. "Everything he does, he does with such calmness."

Arguably die Mannschaft's greatest ever keeper, Sepp Maier is also a vocal admirer. "Marc is virtually on a par with Manuel Neuer. Neuer has just preceded him. He plays for Bayern and has distinguished himself internationally."

Ter Stegen has responded to big challenges in the past - it can't be easy to come into a team sinking like a stone and lead them to survival, particularly as a teenager, but Barca's management and fans must have patience and build up his confidence. 

His scope to grow is enormous and moving to Camp Nou will help him reach the next level, so his signing is a risk, but certainly one worth taking

Privatisation problems: ‘Excess employees to be given opportunity in Dubai, Qatar’

Privatisation Commission Chairman Muhammad Zubair said Pakistan Steel Mills currently has 75% surplus employees. PHOTO: FILE

LAHORE: In what could be a matter of concern for the government, Privatisation Commission Chairman Muhammad Zubair has said that a ‘minimum’ number of workers would be laid off during the privatisation process.

He added that excess employees would be given benefits, reshuffled to other organisations or be given an opportunity to work in Qatar or Dubai, as he addressed the Lahore Economic Journalists Association (LEJA).

“Downsizing in these public entities as a result of privatisation is the most important concern of the opposition as well as of the government. But we should also look at those people on the other side of the wall who are waiting for the right opportunity,” said Zubair. “However, I can assure everyone that minimum workers would be laid off and excess employees will either be given benefits, reshuffled to other organisations or we will provide them an opportunity to work in Qatar or Dubai due to the increasing employment opportunities there due to the World Cup and Expo 2020,” he said.

Despite the government’s plan to raise Rs150 billion during the current fiscal year through privatisation being delayed due to various reasons, Zubair said that he was planning to move ahead even more aggressively.

Privatising public entities is a tough job, but it is necessary to put Pakistan back on track of economic revival, said Zubair.

The official said that strategic partners were needed who could inject capital into sick units and turn them into profitable ventures. These organisations need structural changes for sustainable growth, and for this we have to take tough decisions, he said.

“Habib Bank is one of the best examples — the bank, before its privatisation, had 13,000 employees. The number has now crossed 26,000 employees with improvement in services,” he said.

Zubair also mentioned Pakistan Steel Mills, saying that the entity currently has 75% surplus employees. “Out of 4,600 officers, 2,600 are either middle school or matriculation-cleared and they all are deputed in key departments at the PSM,” Zubair said. “How can you expect progress with such a workforce

Pakistan to ink initial deal on CASA power import project

Casa-1,000MW project will help Pakistan get cheaper and cleaner energy to minimise electricity shortages. PHOTO: FILE

ISLAMABAD: Pakistan and countries participating in the US-backed Casa-1,000 megawatt (MW) project are set to sign the initial deal in Istanbul, Turkey.

Sources told The Express Tribune that State Minister for Water and Power Abid Sher Ali and additional secretary left for Istanbul on Thursday to ink the deal.

“Pakistan, Afghanistan, Kyrgyzstan and Tajikistan are to sign different agreements on financial, technical and legal matters,” sources familiar with the development said. “This will be followed by a deal in Washington on the Casa-1,000MW power import project.”

According to sources in Tajik Embassy, the Casa-1,000MW power import project will help Pakistan get cheaper and cleaner energy to minimise electricity shortages and build close economic relations with neighbours Kyrgyzstan and Afghanistan. They said that the project was feasible despite the law and order situation in Afghanistan, and will help demonstrate its viability as a transit country linking the two regions.

Among other sectors of the economy, the energy sector of Tajikistan had showed sustainable growth in the last 15 years. During this period, hydro energy generation has remained stable. In addition to big plants, sources said that there were also 20 medium and 40 small hydro stations in the remote areas, with capacity ranging from 5 kilowatt (kwt) to 1,500kwt.

Tajik embassy said that the country was the world’s third largest producer of hydroelectric power after the US and Russia. Hydroelectric generation accounts for 76% of the total energy output in the country. In Pakistan, the rate for firm energy is 13.2 US cents per kilowatt hour (kWh) and the rate for non-firm is 9.2 cents per kWh, while the generation cost in Afghanistan is estimated to be at least 6 cents per kWh based on the provided information. The economic analysis shows that the level cost of transmission is calculated at 4.97 cents/kWh.

The total estimated cost of the project is $1.160 billion, which would be financed by the World Bank and Islamic Development Bank (IDB).

MOL completes work on $225m gas processing plant

So far, six discoveries have been made in the block, the first in 2002 and the most recent in 2011. PHOTO: FILE

ISLAMABAD: MOL Pakistan has announced that its joint venture in Tal block has completed work on Makori gas processing plant at a cost of $225 million, which will immediately start producing 300 tons of liquefied petroleum gas (LPG) per day.

“This new addition will take MOL’s production in the country to 300 million cubic feet (mmcf) of gas per day, 21,000 barrels of oil and condensate per day and 300 tons of LPG,” Alexander Dodds, Executive Vice President of MOL Group, said in a meeting with Prime Minister Nawaz Sharif here on Wednesday.

Dodds was leading a high-level delegation of the group in the meeting. Federal Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi, Minister of State Jam Kamal Khan and MOL Oil and Gas Company Political Adviser Ali Murtaza Abbas were present.

Appreciating the investor-friendly petroleum policy of Pakistan, Dodds suggested that the government should look at other avenues in the petroleum sector including shale gas exploration.

The completion of Makori plant will make MOL the second largest producer of oil/condensate and LPG and fourth largest producer of gas in the country. Tal joint venture has so far invested around $1.4 billion in Khyber-Pakhtunkhwa.

Petroleum Minister Shahid Khaqan Abbasi said MOL worked with both federal and provincial governments and the local community in an exceptionally professional manner. He asked the prime minister to inaugurate the gas processing facility soon.

Federal Petroleum Secretary Abid Saeed asked MOL to step up exploration activities and enhance investment and welcomed the increase in the company’s rig operations, which rose from two rigs to four.

Tal block has been jointly explored and developed by MOL, Pakistan Petroleum Limited, Oil and Gas Development Company, Government Holdings Private Limited and Pakistan Oilfields Limited.

So far, six discoveries have been made in the block, the first in 2002 and the most recent in 2011.

Commercial production has started from five of the discoveries – Manzalai in 2005, Makori in 2006, Mamikhel in 2010, Maramzai in 2011 and Makori East in 2012. Tolanj discovery is under appraisal.

The increase in production has coincided with the completion of MOL’s 15th year in Pakistan. With the completion of the new plant, the company’s daily production has increased by 30 mmcf of gas, 7,500 barrels of crude oil/condensate and 300 tons of LPG.

First phase: Hascol Petroleum’s IPO receives positive response

Hascol Petroleum sells POL products through a network of 210 fuel stations across Pakistan. It plans to add another 50 retail outlets by the end of this year. PHOTO: FILE

KARACHI: 

The first phase of the initial public offering (IPO) of Hascol Petroleum has concluded with as many as 1,191 bidders taking part in the book-building portion, which was oversubscribed by more than seven times.

The capital issue of the oil marketing company consists of 25 million ordinary shares – or 27.6% of the company’s post-issue paid-up capital – with a face value of Rs10 each. The book-building portion, which took place on March 4 and 5, comprised 18.7 million ordinary shares, or 75% of the total issue size, at a floor price of Rs20 per share.

Institutional investors and high net worth individuals submitted bids of 132.5 million ordinary shares as opposed to 18.7 million shares that were up for grabs, which reflects the overwhelming response that the year’s first IPO has received.

Hascol Petroleum sells POL products through a network of 210 fuel stations across Pakistan. It plans to add another 50 retail outlets by the end of this year.

Speaking to The Express Tribune on Thursday, AKD Securities Head of Investment Banking Umair Aijaz said the offer’s book runners have determined the cut-off/strike price of Rs56.5 per share. The strike price was calculated through the Dutch Auction Method, an auction structure in which the price of the offering is set after taking all bids and determining the highest price at which the total offering can be sold.

AKD Securities is the book runner as well as joint lead manager and arranger to the issue along with Avais Hyder Liaquat Nauman Chartered Accountants.

“The response received from institutional investors and high net worth individuals is according to our expectations. We believe the general public will also participate in the IPO equally enthusiastically,” Aijaz said.

Referring to the remaining 25% of the total issue size, Aijaz noted that the public subscription will be held in either the last week of March or the first week of April. This means roughly 6.2 million ordinary shares will be issued to the general public at the rate of Rs56.5 per share – the price that has been determined during the book-building exercise.

The objective of the issue is to inject additional equity into the company for the completion of Machike storage facility in Sheikhupura and for setting up new retail outlets across Pakistan. About Rs200 million raised through the IPO will be spent on the storage facility while Rs100 million will be used to set up and commission new/under-construction retail fuel stations. Additional money will be utilised in meeting working capital requirements of the company.

Aijaz said Hascol Petroleum has managed to stay away from circular debt, which reflects well on the investment prospects from a retail investor’s point of view.

He said the company does not offer any unsecured credit (other than Rs250 million allowed to its franchise retail outlets). Moreover, its debt mainly comprises of fuel oil supplied to IPPs against irrevocable bank guarantees because of which the company has nothing to do with the circular debt issue.

The company’s profit after tax in fiscal 2013 was Rs392 million. It increased at an annualised rate of over 40% during the last four years.

Dent in revenues: Govt admits to revising tax target downwards

The reduction in tax collection target will dent the government’s efforts to increase Tax-to-Gross Domestic Product ratio to 9.5% by the end of the current fiscal year. CREATIVE COMMONS

ISLAMABAD: 

After months of public denial, the federal government on Thursday admitted that the Rs2.475 trillion tax target has been revised downward, which will have direct implications for the development budget that has also been sliced by one-fifth.

Due to lower tax collection in the last fiscal year, this year’s tax collection target has been revised to Rs2.345 trillion, Rs130 billion less than the target set by the Parliament, said Finance Minister Ishaq Dar while talking to media. Dar spoke after attending a ceremony arranged to launch the £10 million Financial Inclusion Challenge Fund to support the rural agriculture sector.

Dar said this year’s budget had been prepared on the assumption that the Federal Board of Revenue would collect Rs2.05 trillion in tax revenue in fiscal year 2012-13. In the end, the FBR collected only Rs1.946 trillion that eroded the base, which was now affecting revenue collection in the current fiscal year, he added.

Dar said so far the FBR had managed to attain a 17% growth rate in revenue collection over the previous year and expectations were that the rate will increase to the 20% necessary to achieve the revised target of Rs2.345 trillion, he added.

The first report of the International Monetary Fund (IMF) that went public in September last year had showed that the FBR’s revenue collection target was Rs2.345 trillion. However, at that time the federal government dispelled it saying it was merely the IMF’s projection.

The reduction in tax collection target will dent the government’s efforts to increase Tax-to-Gross Domestic Product ratio to 9.5% by the end of the current fiscal year. The reduced revenues will also adversely hit the provinces’ shares in federal taxes, which will affect their annual development plans.

But Dar insisted that despite the reduction in tax target, the provinces will still get Rs219 billion more than what they got the previous year as their share in federal taxes.

Dar said that due to the reduction in tax collection this year’s development budget will be Rs425 billion. The Parliament had approved Rs540 billion for the development budget for the current fiscal year. He said the Rs115 billion ‘Block’ allocation had been linked with the FBR’s ability to achieve Rs2.475 trillion tax target.

It was not yet clear whether the government will stick to the budget deficit ceiling of 5.8% of the GDP or try to relax it. Breaching the budget deficit ceiling may adversely affect the $6.7 billion IMF programme.

US assistance

While responding to a question on reduction in United States (US) civilian assistance to Pakistan, Dar said Pakistan will review the situation. Dar said his government was more concerned about timely disbursements of the Coalition Support Fund (CSF) than receiving aid under Kerry Lugar Berman Act.

President Obama has sought approval for $1 billion from Congress for both civil and military assistance to Pakistan for the next fiscal year. This has given rise to speculations that the US administration has cut the annual $1.5 billion civilian assistance programme.

Pakistan has sent CSF bills from October to December 2013 to the US and total outstanding dues on account of CSF have increased to $1.6 billion, said Dar, while urging the US to disburse the money timely so that Islamabad could cushion its depleting foreign currency reserves.

Eurobond

Dar confirmed reports that Pakistan will float $500 million worth of Euro Bonds early next month. He said the transaction will be completed by the mid of next month and hoped that the bond will get affirmative response from the international investors.

Dar said Pakistan’s economy was moving in the right direction and the country will achieve an economic growth rate of 4.4% as against the IMF projection of 3.1%. He urged commercial banks to increase credit lines to the agriculture sector that contributes over one-fifth in GDP but gets only 7% of the total banking sector loans.

He said the government was focusing on regional integration and creating energy corridors aimed at boosting prospects for growth.