SBP implements balance of payments manual
KARACHI (Staff Reporter): The Statistics and Data Warehouse Department of the State Bank of Pakistan has initiated transition towards disseminating the balance of payments of Pakistan on the basis of methodology set out in the 6th edition of the IMF’s Balance of Payment and International Investment position Manual (BPM6) beginning with July 2013. Conceptually, BPM6 maintains the overall framework of the methodology of the previous (fifth) edition of the Manual (BPM5).
However, BPM6 deepens the harmonisation of the IMF’s external sector statistics recommendation with the update of the System of National Accounts and the international standards in the area of other macroeconomics statistics.

MCB Board declares cash dividend of Rs3.5 per share
KARACHI (Staff Reporter): The Board of Directors of MCB declared a cash dividend of Rs 3.5 per share after approving the financial statements for the first half ended June 30, 2013. This was decided in a meeting of  Board of Directors of MCB under the chairmanship of Mian Mohammad Mansha. Earnings per share (EPS) for the period came to Rs 11.75 compared to Rs 11.07 for June 30, 2012. Return on assets improved to 3.08pc and return on equity came to 25.91pc with book value per share improving to Rs 93.56.
The Bank registered profit before tax of Rs 17.70 million with an increase of 4pc and profit after tax of Rs 11.887 million with an increase of 6pc over June 30, 2012. The growth in profitability numbers is reflective of the underlying financial strength of the Bank in such operating environment.
The gross markup income decreased by 4pc over corresponding period last year which was off-set by the lower cost of funds on strategically managed CASA base.
The Bank focused on improving its non-markup income proportion and registered a growth of 12pc over the corresponding period last year.

PIA Base Incharge Lahore appointed
LAHORE (Staff Reporter): Pakistan International Airline (PIA) management has issued notification regarding posting of Zafar Sohail Dar, Senior Purser PIA as Base In-charge Lahore on Friday, said a PIA senior officer. Crew members have welcomed the management decision and said that Dar was talented and courageous officer and he would leave no stone unturned for the betterment of cabin crews. Air League of Pakistan International Airline has also congratulated Dar and appreciated the decision.

Clean cotton can earn handsome returns
MULTAN (APP): Punjab Agriculture department has urged farmers to pick clean cotton only in order for maximum returns from international market. According to agriculture department, Pakistan produces high quality cotton due to ideal weather condition,fertile land and hard labour of farmer. “But due to careless attitude of cotton picking women and mishandling during transportation the cotton gets polluted.Such cotton cannot bring reasonable returns to farmers”,sources elaborated.
Cotton picked mostly contains leaves, human hair, feathers, polythene piecee butts, thread,mud anerials that pollute the cotton.
Agriculture department decided to launch campaign for promoting concept of neat and clean pick of cotton.The department would seek help of radio, TV, newspaper and other media to promote concept of clean cotton.
The agriculture engineers have prepared special trolley for keeping cotton neat during transportation. The department has urged that such special equipment be adopted for the supply of cotton.

India's rupee plunges to new low
MUMBAI (AFP): India's rupee plunged to a new low Friday and stocks saw their sharpest single-day fall in nearly two years on fears that foreign capital could flow back to the United States as the US economy improves. The rupee hit a record of 62.03 rupees to the greenback, slipping past its previous low of 61.80 rupees on August 6. India's stock markets saw relentless selling pressure, with the Bombay Stock Exchange's benchmark 30-share Sensex index plunging to close down 3.97 percent or 769.41 points.
 -- its sharpest single-day point fall since September 2011 -- to 18,598.18 points.
After the stock markets closed, a finance ministry official said that excessive forex exchange volatility was impacting the equity markets.
"The rupee worry spills over to the equity markets and the equity worry spills over to the rupee. It is a potentially vicious circle," an unnamed ministry official told the Press Trust of India news agency.
The currency recovered marginally but still ended the day at a record closing low of 61.65 to the dollar.
Friday's sharp decline reflects fears that recent measures by the Reserve Bank of India may not be able to help slow down foreign fund outflows and the ailing currency, dealers said.
India's markets were closed Thursday, so Friday was the first day the markets reacted to new measures announced by the central bank to control forex outflows and prop up the rupee.
On Wednesday, the central bank said that Indian firms can invest only 100 percent of their net worth abroad, down from an earlier 400 percent.
Resident Indians will be able to send only $75,000 out of the country each year -- down from $200,000 previously.
"(Wednesday's) measures have caused fresh concern, suggesting that one can bring in capital (into India) but it is difficult to take it out," said Sonam Udasi, head of research with investment bank IDBI Capital.
Udasi said investors were worried that despite India's long-term growth potential, "things are not in shape in the interim period".
"This is a panic fall," said Ajay Bodke, an investment strategist at Mumbai brokerage Prabhudas Lilladher, as demand for the dollar has risen on expectations of a scaling back of US stimulus in September.
Since June 1, overseas funds have pulled out a combined $11.58 billion in equities and debt from India's markets, over concerns about the weakening economy, regulatory data shows.
"There is complete lack of faith in the markets. We are slowly, but surely, likely to enter a phase of a crisis," Param Sarma, chief executive at NSP Forex, a consultancy firm said.
Meanwhile, local gold prices surged by 1,310 rupees ($21.20) per 10 grams, the most in two years, to 31,010 rupees on strong demand from stores ahead of India's religious festival season -- despite moves by the government to curb bullion imports to lower India's trade gap with the rest of the world.
The fall of the rupee is part of a wider trend as most emerging market currencies have depreciated in recent months against the dollar, which is strengthening as its economy recovers.
Dealers said there was no immediate sign of intervention by the central bank to prop up the rupee, which at Friday's low had depreciated 13.2 percent against the dollar so far in 2013.
The falling rupee stokes inflation by raising the cost of everything India imports from crude oil to chemicals and pulses.
The rupee's woes come as the government is struggling to turn around India's once red-hot economy by pledging new steps to narrow the gaping current account deficit -- the broadest measure of trade -- which hit a record level last year.
The economy grew at a decade-low 5.0 percent in the year to March.
The high current account deficit, slowing domestic growth and weak exports put heavy pressure on the rupee.
The central bank has said until the rupee stabilises it cannot lower borrowing costs to spur the slowing economy.

PLDDB’s rally on tomorrow
LAHORE (Staff Reporter): Punjab Livestock and Dairy Development Board (PLDDB) has planned to take out a rally on Sunday (August 18) from Governor’s House to Punjab Assembly Chowk (Faisal Chowk) for creating awareness amongst the masses about identification and eradication of dengue mosquito and its larvae. The rally will be led by the high-ups of the Board and will be participated by the trainee Artificial Insemination Assistants (AIAs) and Women Livestock Extension Workers (WLEWs) and staff of the Board. The rally will start at 10:00am from the Governor’s House.
According to the PLDDB General Manager (Field Services and Capacity Building) Dr Naveed Niazi staff and trainees will also distribute literature at all the prominent chowks on main roads of the city. The literature will highlight the identification of mosquito spreading dengue, its precautionary measures, treatment, identification of larvae and its eradication.
It may be mentioned here that the Punjab government had announced to observe second anti-dengue day this year on August 18 this month is considered to be critical month with regard to dengue breeding, therefore, the government directed all the departments concerned to work hard for its elimination and intensify vector surveillance and larvaeciding activities.