DAILY BUSINESS NEWS IN BRIEF: 23.08.2011

Gold hits record high near $1,900

LONDON, Aug 22: Gold hit a record high near $1,900 an ounce in Monday trade as lingering fears of a fresh global recession caused dealers to snap up the precious metal regarded as a safe-haven investment.
Gold struck an all-time peak of $1,894.80 on the London Bullion Market, beating its high of $1,878.15 recorded last Friday. It stood at $1,880 in afternoon London deals.
Gold has marked a new record high for the third straight (trading) day, at almost $1,900, Commerzbank analysts said in a note to clients.—AFP

Dollar hits new peak vs rupee

KARACHI, Aug 22: Demand-push price of dollar set new record on Monday in the inter-bank market despite the fact that the greenback was easily available at much cheaper prices in the open market.
It was a new trend in the dollar-rupee exchange rate history as previously the US dollar used to trade at higher rates in the open market compared to inter-bank market.
On Monday the dollar was traded as high as Rs87.10 and settled at Rs87.07 in the inter-bank market.
However, in the open market the dollar was available at Rs86.50 showing its real strength and easy availability. The higher dollar price in the inter-bank market was only because of big payments mainly related to oil imports.
For more than two years the private sector has been paying oil import bill on its own after State Bank stopped making payments against oil imports.
There were fears that the speculators might find some opportunity to manipulate the dollar prices after shifting payment of oil import bills to private sector but the record foreign exchange reserves and high remittances strengthened the rupee versus the dollar.
Currency expert said the rise in dollar price was temporary because the US currency was under pressure on the global markets and once the demand for dollar dropped, the exchange rate would be readjusted downward.
The currency investors have not been investing in US dollars following downgrading of US credit rating by the Standard and Poor`s while they were taking refuge in euro due to rising debt crisis.
“Pakistan remains least affected from any new global trend as we have seen in the case of recent financial crisis started from US and Europe and the currency disaster of 1999 in Far East. Once again devaluation of the dollar on the international market has least impact on the rupee exchange rate,” said Atif Ahmed, a currency dealer at the inter-bank market.
Dealers said the large payments of previous three days accumulated on Monday which sharply increased demand and pushed the dollar price to record level for the current calendar year.
Currency dealers in the open market said the dollar was easily available while other regional currencies like Saudi riyal, UAE dirham were also being traded in large numbers.
Both the open market and inter-bank market markets were short of rupee liquidity which supported higher prices of dollar.
Anwar Jamal, open market currency dealer, said the market was facing scarcity of local currency which encouraged the dealers to maintain a wider gap between buying and selling of dollar.

Fehmida alleges WB, Wapda of LBOD project failure

ISLAMABAD: Dr Fehmida Mirza Speaker National has said that that due to ill planning of Wapda and World Bank on LBOD project caused damaged billion of rupees losses to the Badin District.
According to message received by Deputy Director (Information) PID Badin the Speaker National Assembly Dr Fehmida Mirza said this while briefing to the media men at DCO Office Badin.
She said that federal, provincial and district governments have catering the situation on their own sources, yet no any international community, or  social agencies supported to the rain affected people of Badin.
She further said that 414 relief camps have been established, and two hundred thousand displaced people were encamped in various relief camps by providing food, tens, and other essential commodities items.
She said that under the directives of President and Prime Minister a comprehensive plan for redesigning of LBOD project would be made with the consultation of four districts of elected representatives so that Badin people cannot face such miseries in again.
Responding to the journalists, she said it was shocking for me to learn that storage water capacity would be available on for 24 hours for Badin city and other adjoining area.
She said that she has called secretary Public Health Engineering Department to resolve the issue of water scarcity and find out solution on priority basis.
On this occasion, citizens and media men also appreciated the struggle and day-night efforts made by the Speaker National Assembly in connection with the relief activities.
MPA Dr Sikandar Mandhor,DCO Badin Dr Kazim Hussain Jatoi, and other citizen, party workers were present. – NNI

Contract for 150k metric tonne urea awarded

KARACHI: In response to Trading Corporation of Pakistan’s (TCP) gallop tender notice issued on 12th August, 2011, for import of urea to meet the urgent requirement of fertilizers for Kharif-2011 crop, TCP has awarded the tender for the total quantity of 150,000 metric tonne, on Monday.
According to statement issued by TCP, nine bidders participated in the tender and the prices quoted by them ranged between $534.50 to $544.50 per metric tonne.
Contract to supply 65,000 MT urea was awarded to M/s Key Trade Switzerland who had offered the lowest bid of $534.50 PMT.
The balance 85,000 MT was awarded to M/s Transammonia AG, who had agreed to match the lowest bid.
Federal government had given necessary permission to the TCP to offer price-matching in case the lowest bidder did not offer the total tendered quantity.
The shipments against the tender are scheduled to arrive at Gwadar Port by 30th September, 2011.

Angry traders return without meeting PM KARACHI: Business and industrial leaders of the city came back from Governor House without meeting the Prime Minister on Monday after waiting to see him for the whole day. Group of traders include representatives of Karachi Chamber of Commerce and Industry, Korangi Association of Trade and Industry, F B Area Association of Trade and Industry, SITE Association of Trade and Industry, North Karachi Association of Trade and Industry and Landhi Association of Trade and Industry. Some traders said with the request of anonymity that most of the ministers of the government did not want their meeting with the Prime Minister Syed Yousuf Raza Gilani and they succeeded to do so. They said that main agenda of their meeting with the Prime Minister was to apprise him details about the people who are demanding extortion money from them. All the leading industrial and business association have decided to join hands with MQM in its day of mourning today and decided to keep their businesses shut in protest against extortionists who are moving free in the city sabotaging the business environment of the metropolis.

 

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Mohammed Saleem Mansoori