Fatima Fertilizer mops up dollars for investment in US plant

To be set in Indiana, expected to start production in 2018.

KARACHI: 

Sponsors of Fatima Fertilizer have mopped up tens of thousands of dollars from the open market in the last few weeks as part of their plan to invest in a fertiliser plant in the United States. 

The move comes ahead of a shareholders’ meeting on April 30 to give the final nod for equity investment of up to $300 million in the Midwest Fertiliser Corporation (MFC) over a period of four years, which is building the fertiliser plant with a production capacity of 2.59 million tons a year in the US state of Indiana.

Fatima is the main sponsor for the project which is expected to start production in 2018. It is going to be the first nitrogenous fertiliser plant in the US in 20 years.

Foreign exchange dealers and banking industry sources say since State Bank of Pakistan (SBP) does not allow companies to remit money out of the country, the directors had to move the dollars from individual accounts.

“Fatima Fertilizer was very active last month,” said Malik Boston, chairman of Forex Association of Pakistan. “That is the reason the dollar shot up to Rs103 for a while.”

He said the pressure has now subsided. “We had informed the SBP governor about the unusual demand and that’s when we learned it was related to Fatima’s investment.”

The project, which will make Fatima the first Pakistani company to have a foothold in the US, remained in jeopardy for months after Indiana Governor Mike Pence pulled back key state support in February 2013, reason being that calcium ammonium nitrate (CAN) was being used for making improvised explosive devices across the border, according to US military officials in Afghanistan.

Fatima is the only company in Pakistan that makes calcium ammonium nitrate (CAN),

Since then, the company changed packaging and converted the colour of CAN grain to address US military concerns. But most importantly, it started work on a new chemical formula to make the fertiliser less explosive.

Fatima Fertilizer Chairman Arif Habib said the US meets half of its fertilser demand through imports. “We are building the project at the right time as it has coincided with all the shale gas discoveries.”

Gas or methane is key ingredient for making fertiliser and shale gas discoveries have brought down its price.

Habib said that the financing has been arranged in such a way that it will not put any burden on Pakistan’s foreign exchange reserves. Project management services contract has already been awarded to Jacobs Engineering Group and construction work is expected to start in November 2014.

OGDC: Privatisation Commission picks financial adviser for $1b share float

Minister of State for Privatisation Muhammad Zubair chaired the fourth board meeting of the privatisation commission. PHOTO: NNI

ISLAMABAD: The Privatisation Commission (PC) board approved on Tuesday the hiring of a consortium of Merrill Lynch, Citigroup Global Markets and KASB Bank as financial adviser for issuing Global Depository Receipts of Oil and Gas Development Company (OGDC) on the London Stock Exchange to raise $1 billion.

The board, which met here under the chairmanship of PC Chairman Mohammad Zubair, also gave a green signal for appointing financial advisers for floating shares of Pakistan Petroleum Limited (PPL) and United Bank Limited (UBL) in domestic capital markets.

The government is running against time to earn revenues of about Rs150 billion before the end of June by selling shares of these three companies – a task that appears highly challenging given the nature of transactions.

The money will come as part of non-tax revenues aimed at restricting budget deficit to 5.8% of gross domestic product.

Under the law, 90% of the revenues raised through privatisation should be utilised to retire public debt and the remaining 10% on the social sector.

The PC will shortly offer Letters of Intent to the selected consortia. The financial advisers will be responsible for structuring the transactions.

The three companies are part of a group of five that has been selected for share float in capital markets to raise about $2.5 billion by December this year. The other two are Habib Bank Limited (HBL) and Allied Bank Limited (ABL).

Since 1991, a significant number of shares of all these entities had been sold in stock markets, generating revenues of Rs150.3 billion, showed the PC documents.

The consortium of Merrill Lynch, Citigroup Global Markets – the US-based brokerage and securities arm of Citibank, and KASB Bank would work as financial adviser for offloading 10% shares of OGDC on the London Stock Exchange, said PC Chairman Zubair while talking toThe Express Tribune.

The consortium has been picked out of three bidders. The second consortium comprised UBS Bank, Nomura Group, Dubai Islamic Bank and Topline Securities. The third consisted of Barclays Bank, Credit Suisse and Deutsche Bank.

The PC board has already approved sale of 10% shares of OGDC out of a total 85% held by the government. Minimum expected earnings from the sale are put at around Rs90 to Rs100 billion ($1 billion), according to officials privy to the discussions.

From 2003 to 2007, the Musharraf government sold 15% shares in domestic and international markets in three transactions and earned Rs56.25 billion.

In reply to a question, Zubair said the PC would try its best to sell OGDC shares before the end of June. However, he cautioned that nothing could be said with certainty as the London Stock Exchange had stringent requirements that had to be met.

He said OGDC’s audit until April would have to be conducted in addition to certification of oil and gas reserves by a UK-based company.

LSE authorities will also require at least four to six weeks for completing formalities. “If there is a delay, it will not be because of lack of efforts,” he added.

The PC board also approved a consortium of BMA Capital, Foundation Securities, Arif Habib, Bank Alfalah and HBL as financial adviser for offloading 5% shares of PPL in domestic capital markets.

At present, the government has a 78% stake in PPL and the share sale is expected to earn Rs20 to Rs25 billion. In 2004, the government had sold 15% shares of PPL for Rs5.6 billion.

The board also cleared for appointment as financial adviser a consortium of Credit Suisse, Arif Habib and Elixir Securities for offloading 10% out of remaining 20% government shares in UBL. It is expected that a minimum of Rs15 billion will be earned from the process.

Wheat being smuggled to Afghanistan seized

Food control officers seize 9 trucks laden with 10,000 wheat bags to be smuggled into Afghanistan. PHOTO: FILE

DERA GHAZI KHAN: 

Food control officers on Tuesday seized nine trucks laden with 10,000 wheat bags to be smuggled into Afghanistan.

Inspector Muhammad Ramazan and other officials stopped two trucks at a check post in Shahwali, Rajanpur. Basheer Ahmad, who was in charge of Vehoa check post, DG Khan, caught three Afghanistan-bound trucks. Mehar Muhammad Asif, in charge of Shah Sadardin check-post, seized four trucks. The total number of wheat bags seized from these trucks was 10,000.

Cases have been filed against the truck drivers. Early investigations revealed that they were going to smuggle the wheat to Afghanistan, Minister for Punjab Prisons Abdul Wahaeed Araien told media on Tuesday.

He said the smuggling of wheat and manipulation of wheat market will not be tolerated at any cost. He said surveillance cameras had been set up at various check posts in Dera Ghazi Khan and Rajanpur.

“If a province or institution needs wheat, it should use proper channels to ask the Punjab government. Illegal supply of wheat will not be tolerated.” Araein said that farmers deserved the full fruit of their labour. He said the government will purchase all the wheat – to the last grain – from farmers in the two districts, even if it meant raising the procurement target.

Salvaging peace process: Interior minister meets TTP committee today

Interior Minister Chaudhry Nisar Ali Khan. PHOTO: PID

ISLAMABAD: 

In an attempt to salvage the foundering peace process, the government on Tuesday said that a meeting with the Tehreek-e-Taliban Pakistan [TTP] intermediaries has been convened on Wednesday (today) to discuss the group’s refusal to extend the ceasefire.

“Interior Minister Chaudhry Nisar has convened a joint meeting of Taliban and government committees,” an interior ministry spokesperson confirmed. “Both sides are expected to deliberate on the Taliban’s refusal to extend ceasefire,” he added.

During the meeting, the two sides will discuss ways to push the dialogue process forward in the backdrop of Taliban’s refusal to extend the ceasefire. They are also expected to discuss the second face-to-face meeting between the government and Taliban shura.

The government is expecting that the Taliban will put forward their list of demands in the second meeting, which is considered to be the actual start of dialogue process.

The government has remained steadfast in its resolve to continue talks with the Taliban but at the same time, it stated that talks without a ceasefire would not be possible. Though the TTP announced its decision to not extend the ceasefire, their negotiating team said it was still trying to push for an extension.

Earlier on Saturday, the interior minister convened a meeting of both committees; however, it was cancelled without any explanation.

In addition, Professor Muhammad Ibrahim, member of the TTP committee, said that he was not informed about the meeting. Ibrahim said, “We are trying to get the extension. The concerns of the Taliban should be addressed [by the government] and we would ask them to maintain the ceasefire.”

On April 16, the TTP decided not to extend the ceasefire and the next day, the government said that it would perhaps not be possible for it to move on with the dialogue process. However, the government had not shut its doors on talks.

The TTP announced an extension of the ceasefire till April 10 after the government released 19non-combatant prisoners. In return, the government demanded that the Taliban release Professor Ajmal [former vice chancellor of Islamia College University], and the sons of former prime minister Yousaf Raza Gilani and slain Punjab governor Salmaan Taseer.

Separately, while addressing National Book Day celebrations, Information Minister Pervaiz Rashid said that all coalition parties support the ongoing dialogue process and it was going in the right direction.

Treading a cautious line, Rashid said, “We are not with those who talk with guns rather we are with those who believe in the process of peaceful negotiation.”

Dishing out a recipe for peace in the country, the minister said all books which promote extremism and hatred should be wiped out

At LUMS I was not allowed to enter the library

LUMS, one of the top-ranked private universities in Pakistan, denied some of the students access to their library.

Ray Bradbury, a well-known American author says,

“There’s no use going to school unless your final destination is the library.” 

I endorse the same idea; any kind of studying is incomplete without having access to a library where one can explore and read about relevant material.

The reason why I feel the need to highlight the importance of a library is because of something that I had experienced while I was studying a management course at the Lahore University of Management Science (LUMS), one of the top-ranked private universities in Pakistan. To my surprise, during the entire duration of my course, none of the enrolled students of our class were allowed to walk into the university library which came as a huge disappointment.

This made me wonder how an educational institute could ever disallow or prohibit the entrance of any of its students into a library, despite being provided university identity cards. But my curiosity was answered by the Continuing Education Program (CEP) coordinator when I asked her what the reason behind this ‘rule’ was. She simply told me,

“I did ask the library management but they say that only regular students can enter the library.”

As absurd as this seemed, I asked,

“Can you be of any help in this regard? What if we request them to allow the CEP students as well?”

She answered my queries by saying,

“No! I’m sorry! It’s not going to work. I have already asked them if there is any such possibility. But I am told that it becomes hard for the library administration to manage the growing crowd, which is why they have to restrict the use of the library. Thus, there is no such chance of accommodating the CEP students at the moment.”

I was left speechless. Being a book worm and one who loves spending time in libraries, I was highly disappointed and could only ask myself,

“What is the reason behind this discrimination?”

After this incident, I raised my concerns during the mid-term evaluation in which the students were asked to provide feedback and suggestions about their experience. This little exercise was done so ‘that (the university) could help meet their expectations’, but it was all in vain.

By ‘regular students’ they meant students enrolled in full-time degree programs. At first, I found all this quite astonishing but then I remembered a friend narrating her experience to me, which was worse than mine. She was humiliated by the same university’s library management when she wanted to do some research for an assignment but was eventually turned down even though she had gotten verbal permission from one of the authoritative figures of the management.

On the other hand, when I happened to visit my Alma Mater, the University of Central Punjab (UCP), I was allowed to sit in the library for as long as I wanted, without any hassle, even though I wasn’t an enrolled student over there anymore.

Yes, both the universities may be poles apart when it comes to academic excellence, but both were educational institutes; one seemed to have its doors firmly shut whilst the other was extremely accommodating.

The famous historian and writer Shelby Foote has highlighted the importance of a library as,

“A university is just a group of buildings gathered around a library”

She implied a library to be an essential part of any university. Taking away access to a library is like depriving a student with a pen to write with. Taking into consideration the load on the library administration, but neglecting the need of a student only goes to show what the priority of the university is. Such policies affirm the belief that educational institutes, in this day and age, are nothing more than commercial entities there to conduct a business and nothing more; where education has become more of a money-making machine than an obligation.

The purpose here is not to praise one institute over another but to highlight an absurdity that prevails at certain institutes. All over the world, students are taught about the significance and usefulness of libraries. Granting access to a university should be tacit approval to use its library. They say, what a school thinks about its library is a measure of what it feels about education; I hope that is not the case with LUMS.

In a developing country like ours, already striving to excel in the field of education, all the available sources of knowledge, including libraries, should be made easily available and accessible for those making the effort to learn and increase their knowledge bank. Prohibiting the use of the library is nothing more than nonsensical and discouraging.

While our country is struggling in the field of education, private institutes must also play their role by making education in the country easier to access. We have enough roadblocks in the country – education should definitely not be one of them.

Truth about Marriage.

Rani Mukherji and director Aditya Chopra secretly tied the knot on Monday (April 21, 2014) in a private ceremony in Italy. It is learnt from reliable sources that there were many reasons for the Mukerji- Chopra family that finally made them decide on this quick and secret wedding in Italy .

Though the couple never admitted to their relationship, Rani Mukerji was always spotted along with the Chopra family in times of celebration and sorrow. Although sources in the industry have been saying that the duo have been married for a year now , the reason for tying the knot and making a public announcement was Rani Mukherji‘s father who has been in the hospital, and has been only wishing to  see his daughter married. He has been in a critical condition since three weeks .

On Friday night, the Mukerji‘s and the Chopra‘s decided that the venue would be Italy. On Saturday night, Rani Mukerji‘s parents - Ram Mukerji and Krishna Mukerji along with brother Raja Mukerji took a flight, and so did Aditya Chopra‘s mother, Pamela Chopra and Uday Chopra. Karan Johar also flew the same night. A priest accompanied the families and the wedding took place according to Bengali tradition.

TAKE A LOOK AT THE VIDEO:
According to sources, Rani, 36, issued a statement, saying: “I would like to share the happiest day of my life with all my fans whose love and blessings have been part of my journey all these years. It was a beautiful wedding in the Italian countryside with a few close family and friends. The one person I missed terribly was Yash uncle, but I know he was there with us in spirit. His love and blessings will always be with Adi and me. I have always believed in fairytale and my life has been exactly like one. Now as I enter the most important chapter of life, the fairy tale continues.”

It is the first marriage for Rani while Aditya, was previously married to Payal Khanna but they got divorced in 2009.

Rani Mukerji has given many hits including Raaja Ki Ayegi Baarat, Kuch Kuch Hota Hai, Black, No One Killed Jessica, Bunty Aur Babli, Saathiya, Hum Tum, Dil Bole Hadippa among a few.

Writer, Director and Producer Aditya Chopra has worn many hats, with major successes, Dilwale Dulhaniya Le Jayenge, Dil To Pagal Hai, Mohabbatein, Veer Zara, Bunty Aur Babli, Salaam Namaste, Bachna Ae Haseeno among a few.

We wish Rani Mukerji and Aditya Chopra a very happy married life!

10 things Hong Kong does better than anywhere else

Editor's note: Editor's note: This story is part of a series highlighting superlatives of countries and cities around the world. Click here for pieces on Italy, France, the United States, Canada,Taiwan, India and South Korea, and watch for upcoming installments featuring other countries.

(CNN) -- How can you not love Hong Kong?

Home of Bruce Lee, divine dim sum, lofty buildings, loftier real estate prices and -- in spite of all those buildings -- easy access to incredible stretches of great outdoors.

It's been more than 15 years since the British handed Hong Kong over to Chinese rule but little has changed.

Hong Kong remains a competitive and independent city, consistently ranked as one of the world's best places to live.

But don't take our word for it.

Here are 10 things this great city does better than anywhere else.

1. Tonal talents

Native English speakers who've managed to learn Cantonese from scratch: give yourselves a pat on the back.

The language has a total of six to nine tones, depending on where you're hearing it, compared to English's zero tones.

No other Asian language comes close. (There are four tones in Mandarin, five in Thai and six in Vietnamese).

That's kind of like saying one English word can be pronounced six different ways and have at least six different meanings.

Locals like to say this makes us particularly good at music (certain karaoke sessions have proven otherwise) and studies have shown there's some truth to this.

To add to the complexity -- and fun -- of the language, Cantonese is a dialect with new slang invented everyday and many words aren't used in written communication.

Intimidated?

Check out Carlos Douh's YouTube channel, the Internet's most entertaining Cantonese language teacher, for quick and easy Cantonese lessons.

2. Staying alive

Don't wanna get murdered?

Come to Hong Kong!

The city not only has one of the lowest crime rates in the world, it ranks third in a list compiled by the United Nations Office on Drugs and Crime in 2011 of places with the least homicides.

Hong Kong -- with an intentional homicide rate of 0.2 per 100,000 people in the last 16 years -- only lost out to Monaco and Palau, where there have been zero recorded murders.

When you consider that Hong Kong has a population of more than 7 million crammed into a city of 1,104 square kilometers, while Monaco only has about 36,000 people and idyllic island nation Palau about 20,000, Hong Kong definitely triumphs as the safest city in the world.

3. Getting you there

Hong Kong is really good at getting you where you need to go.

The public transportation system is famous around the world for its efficiency and profitability, making Hong Kong one of the least car-dependent cities, with only about 710,000 registered vehicles.

In particular, the MTR Corporation that operates Hong Kong's subway system is so good at what they do they run other city's trains as well, including operating sections of subway lines in Beijing, Hangzhou, Shenzhen, London and the whole of Melbourne and Stockholm's underground networks.

4. Building into the sky

When you've got a heck of a lot of people and very little land, what do you do?

Hong Kong's solution is to stack them up on top of each other, inside tall buildings.

Once the city started doing it, it couldn't stop.

Hong Kong now has 1,251 skyscrapers and high-rises, the most in the world, creating a dramatic skyline.

There's the bamboo-like Bank of China by renowned architect I.M. Pei and the 490-meter International Commerce Centre (Hong Kong's tallest), the latter of which will become a gigantic art piece at the hands of sound artist Carsten Nicolai during Art Basel Hong Kong 2014.

MORE: Life inside the densest place on earth

Hong Kong's scaffolders dangle precariously on bits of bamboo.

5. Daredevil construction

Most of those skyscrapers were built using bamboo scaffolding, an old craft that involves tying long pieces of sturdy bamboo together to form a freestanding grid structure for workmen to hang out on.

Daredevil scaffolders dangling precariously on bits of bamboo suspended in midair, with a small harness for support, are a common and heart-stopping sight in Hong Kong's streets.

While most other cities are using steel and aluminium scaffolding, Hong Kong stands by bamboo, even establishing a licensing system through the Hong Kong Construction Industry Council.

There are now more than 1,700 bamboo scaffolders registered with the Construction Workers Registration Board.

6. Letting you keep your money

As a financial center that's historically been seen as the gateway to the Chinese market, Hong Kong is a great place to make money.

What truly sets it apart is that residents actually get to keep most of the money they earn.

With one of the lowest salaries tax rates in the world, capped at 15-17% and no sales tax or VAT, Hong Kong is an attractive place to work and play.

The profits tax rate is the same for foreign and local companies at a low 16.5% and there's no capital gains tax in Hong Kong.

That doesn't make the local government a charity case though.

Property and shares trade keep the government flush -- Financial Secretary John Tsang estimates an HK$12 billion surplus for this year.

Editor's note: An earlier version of this story incorrectly identified the salaries tax rate. The error has been corrected.

"Is that you, Bruce?"

7. Kung fu movies

Bruce Lee, Jackie Chan, Chow Yun Fat, Maggie Cheung, John Woo, Wong Kar-wai ... the list of Hong Kong's cinematic heavy hitters goes on.

For a relatively small city (population 7 million) tucked away in a far corner of East Asia, Hong Kong sure has produced a lot of Hollywood-worthy stars.

But it's the city's kung fu movies that are the most recognized.

"Enter the Dragon," "Fist of Fury," "Once Upon a Time in China," and "Drunken Master" are just a few of the classics that come to mind.

Much of the city's cinematic martial arts glory is due to the efforts of one legendary movie mogul: Sir Run Run Shaw, who passed away at the age of 107 in January.

Shaw put Hong Kong movies on the map by inventing and popularizing kung fu genre films in the 1970s and pushing co-productions such as "Blade Runner."

Despite all that clout Shaw never got to work with Bruce Lee, as the kung fu superstar was offered a better deal by rival Golden Harvest early in his career.

More: Ultimate Hong Kong kung fu tour

8. Soft landings

One of the most impressive sites for Hong Kong visitors is the airport.

Most love the efficiency, the fast connection to the city through the Airport Express, and the frequent traveler system that allows jet setters to use a fast lane through immigration.

The airport is one of the most lauded in the world, winning nearly 40 awards from international operations since it opened in 1998 and ranking atop Skytrax's World's Best Airport list for eight years in a row.

Sure, it's recently been toppled from the throne by Singapore's Changi Airport.

But Hong Kong handles more passenger traffic, 53 million passengers in 2011.

Take that, Singapore.

9. Foodie-ism

Hong Kong: 7 million people, 15,000 restaurants.

This is a city of unashamedly camera-toting, food-blogging, lip-smacking gourmands.

And while we don't have the restaurant density of New York City, our diversity is staggering.

Foodies here will have lunch at a three Michelin star restaurant and dinner at a street-side dai pai dong hawker stall.

Our cha chaan teng diners can whip up fantastical East-meets-West dishes, considered sacrilegious anywhere else in the world -- ever tried a syrup-slathered French toast filled with satay beef slices?

Or instant noodles dressed in a cheese sauce?

No? You haven't lived.

Take it from this city of people who are very good at eating.

MORE: 40 Hong Kong dishes we can't live without

10. Partying so hard the neighbors want in on it

First time visitors to Hong Kong's party area, Lan Kwai Fong, might think they've entered a time warp, suddenly appearing in Ibiza or Cancun at 9 p.m. on a Friday night.

The area crams more than 100 bars, restaurants, clubs and shops into just a few short streets (and in the high-rises along the streets), which themselves are nearly always crammed with expats, flight attendants and other 9-to-5 refugees.

Neon lights blur into happy hour signs, which blur into fridges filled with garishly colored vodka jelly shots.

Come special events, such as the Rugby Sevens or New Year's Eve, the area gets ridiculously, lung-crushingly crowded.

Lankwaifong.com claims it's "Hong Kong's premiere dining and entertainment destination," which makes it sound somewhat more sophisticated than it really is.

But for turning a rubbish Tuesday workday into a heady, beery, feels-like-Friday evening, where you're guaranteed to meet someone you know, there's no place like it.

It's so successful that Chinese cities are asking Lan Kwai Fong Group to re-create the nightlife districts in their cities, namely Lan Kwai Fong Chengdu and Lan Kwai Fong Wuxi.