April 2 layout 1

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pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS

Daily

Vol 1 Issue No. 320

Karachi, Sat April 2, 2016

ISLAMABAD

M FAIZAN

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ederal Board of Revenue Inland Revenue Policy Member Rehmatullah Wazir will leave for Japan on April 3 (Sunday) to attend the Seventh IMF-Japan High-level Tax Conference. The conference is going to be held in Tokyo and will continue until April 7. In the conference, all the participants will share their experi-

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ences with each other. A member from all representative countries will give presentation; while Member Rehmatullah Wazir wills represent Pakistan.

It may be mentioned here that Rehamattulah Wazir has been invited by the IMF Fiscal Affairs director to attend the meeting.

The IMF and Japanese Ministry of Finance will co-host the IMFJapan High-Level Tax Conference for Asian Countries in Tokyo. It may mention here that sixth conference was attended

by IR Policy former member Shahid Hussain Asad.

Customs Appraisement East surpasses Rs 19.5b revenue target of March

Customs ASO seizes smuggled packing material from Badami Bagh

CDWP approves several uplift projects worth Rs218.2 billion

Hyderabad ASO seizes items worth Rs 23 million

13th My Karachi exhibition kicks off at Expo Center

Appraisement EastYousfani, has already surpassed the monthly target of Rs19.5b | See pAge 02 |

The Customs Preventive ASO on Wednesday seized a huge quantity | See pAge 03 |

The federal govt has approved several development projects worth Rs 218.219 b | See pAge 04 |

CustomsASOseizedsmuggleditemsworth Rs 23.34 million involving duty/taxes | See pAge 12 |

Ali Malkani, while welcoming KC eort to promote positive image of the city | See pAge 09 |

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7,695 non-filers get over Rs 73b documented after paying Rs 730m tax Saturday, April 2, 2016

ISLAMABAD: As many as 7,695 non-taxpayers filed 1 per cent taxes of Rs 731 million till March 31 under Voluntary Tax Compliance Scheme (VTCS) 2016, announced by the federal government for business community, and got their untaxed working capital of Rs 73.01 billion documented. Sources said that these filers will enjoy ‘benefits’, announced

by Federal Board of Revenue, like other taxpayers. However, the government will charge 0.5 or 0.6 per cent withholding tax on all banking transactions from April 1 (today). FBR succeeds to document Rs 52 billion untaxed working capital under the tax amnesty scheme till March 16.

National

Appraisement-east surpasses rs 19.5b revenue target of March

Ihc dismisses case against collectorate of customs ISLAMABAD

NAeeM uLLAh tArIQ

KARACHI

AFtAB chANNA

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division bench of the Islamabad High Court (IHC) dismissed a case filed against Collectorate of Customs, Islamabad. A division bench of the IHC comprising Justice Noor ul Haq N Qureshi and Justice Athar Minallah decided the case carrying complaint against imposition of duty/tax of Rs 2.057 million along with default surcharge recoverable under Duty and Tax Remission for Export Scheme (DTRE) for not gaining prior permission to avail duty/tax exemption under the lawful provisions. M/s Win Pipe Industries (Private) Limited had filed the reference under section 96 of the Customs Act, 1969. The petitioner had challenged a decision announced by the Customs Appellate Tribunal, Islamabad. The tribunal had announced the decision in February 2014. During case proceedings, the court found that the appellant had not formulated appropriate legal questions. Moreover, the court stated that in view of findings, no question of law arises from the impugned order of tribunal, the bench stated adding that the court do not find any merits in the instant reference application which is, therefore, accordingly dismissed.

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ustoms Collectorate of Appraisement-East, under the dynamic leadership of Collector Appraisement East Majid Yousfani, has already surpassed the monthly target of Rs19.5 billion set by the Federal Board of Revenue (FBR) for March 2016.

According to sources, Customs Appraisement-East has surpassed the monthly revenue target of Rs 19.5 billion set by the FBR by collecting Rs 23 billion until March 28.

Sources informed Customs Today that the Customs AppraisementEast had achieved the monthly target on 25th of March 2016 while it increased further to Rs 21 billion by the end of Monday.

Source said it is sheer probability that the Customs Appraisement East will collect more Rs 2 billion in remaining two last days of the month of March 2016 resulting in the total collection for the month of March 2016 up to Rs 25 billion.

Meanwhile, FBR has already notiNied that that all the Nield ofNices will remain open and observe extended working hours till 8pm on Wednesday, March 30, 2016 and till 10pm on Thursday March 31, 2016 for collection of duties and taxes.

The Customs Appraisement -East has collected revenue around Rs 23

billion till to date all together in the share of custom duty, sales tax, withholding tax and federal excise duty during the month of March 2016 against the target of Rs 19.5 billion.

It is pertinent to mention here that the Customs Appraisement-East throughout the Niscal year 2015-16 had almost achieved the revenue targets every month set by the FBR. Meanwhile, The Customs Collectorate Appraisement East is Ninding it very hard to ensure speedy dis-

posal of clearance process as the Nield formation is facing shortage of staff since long, it is learnt.

The sanctioned strength of the Customs Appraisement East is around 110 employees, however, the strength has never been completed and the department always remained understaff. Now the workload has almost become double which is hindering the day-to-day functions of the department, sources told Customs Today.

At present, there is a staff of 81 persons in Appraisement East, however, the workload is being increased gradually. Most of the senior staff members have retired or are near to retirement while no new appointment has been made since long, the sources disclosed.

“We have requested the FBR to make new appointments in the Appraisement East so that the future workload could be catered in a beNitting manner”, sources added.

FBr to launch new Internet facility for weBoc F

KARACHI

AFtAB chANNA

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ollowing the recent unexpected shutdown of customs computerized clearing system (WeBOC), the Federal Board of Revenue (FBR) is looking to hire new Internet facilities at its Data Centre in Custom House, Karachi.

According to sources, on the directions of the FBR, the Direc-

torate of Reforms and Automation (Customs) has invited bids from reputed sales tax and income tax registered internet service providers to hire Internet facilities, including Internet bandwidth upto 60 Mbps at 9th floor, Data Centre, Custom House, Karachi. In this regard, Directorate of Reforms and Automation (Customs) has issued tender notices inviting sealed bids for the new internet firm which can provide exclusive internet bandwidth to support

WeBOC/One –Customs.

The Directorate mentioned in the notice that the new firm will be required to provide services and installation and delivery within in two weeks from the date of signing of contract. The Directorate of Reforms and Automation (Customs) mentioning details of the required internet facilities stated that the firm will have to provide internet bandwidth having primary media buried fiber with speed up to total 60 Mbps.

The contract with the firm will be signed for initially for one year which is extendable on mutual agreement. Moreover, the new internet facilities providing firm will be required to make available internet bandwidth with backup media and Wireless Microwave on licensed frequency. In this regard interest firms can obtain tender documents from 9th Floor of Custom House, Karachi from Mahmood Shah who is Drawing and Disbursing Officer by paying non-

refundable Rs1000.

Today is the last day of submitting of sealed bids while received bids will be opened on the same day at 2.00p.m.in the office of Chairperson, tender committee.

It is pertinent to mention here that the WeBOC malfunctioned primarily due to expiration of storage hard discs which were not replaced after completion of warranty life. The entire Storage Area Network (SAN) went shut down suspending all WeBOC operations.

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FIA arrests six suspects involved in human trafficking SIALKOT: The Federal Investigation Agency (FIA) has arrested three human traffickers and their agents during a crackdown.

Sources informed Customs Today that Deputy Director FIA Gujranwala Region Khalid Anees received information that some persons were send innocent people abroad after extorting huge amount from them. He constituted a team which conducted many raids at Kamoke, Gujranwala, Rawalpindi and Sialkot. The team arrested three human traffickers who were later identified as Iftikhar, Musa, Rashid and their agents namely Murad, Nabi Ahmed and Afzal.

Saturday April 2, 2016

National

Quetta customs Intelligence seizes 300 sacks of fertiliser

customs ASo seizes smuggled packing material from Badami Bagh

KARACHI

wAQAr AhMeD ANSArI www.customsbulletin.com

he Customs Intelligence and Investigation, Quetta, has foiled a bid to smuggle a huge quantity of fertilizers to Afghanistan, besides recovering smuggled plastic granules during another action. The Quetta Customs Intelligence received information that a huge quantity of fertilizers would be smuggled to Afghanistan on which the director formed a team headed by Deputy Director Inamullah. The team intercepted a truck near PakistanAfghanistan border and recovered 300 sacks of fertilizers. The officials asked the driver to show documents regarding its legal export but he failed; therefore, the officials confiscated the items and registered a case against the accused.

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Lahore rto leads with 1,308 returns, generates rs 95.5m LAHORE

MuhAMMAD NAwAZ www.customsbulletin.com

egional Tax Officer Lahore is leading with highest collection of 1,308 returns till March 31 under Voluntary Tax Compliance Scheme (VTCS) 2016, announced by the federal government for business community. The RTO also received highest tax collection of over Rs 95.5 million in all over Pakistan. The RTO-II Lahore received 729 returns under VTCS along with paid income tax amounting to Rs 86 million. Bahawalpur RTO received 245 returns with tax of Rs 30.06 million and Peshawar RTO collected 76 returns with tax of Rs6.276 million. Meanwhile, as many as 7,695 non-taxpayers filed 1 per cent taxes of Rs 731 million till March 31 under VTCS and got their untaxed working capital of Rs 73.01 billion documented.

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LAHORE

M hAYAt

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he Customs Preventive AntiSmuggling Organization (ASO) on Wednesday seized a huge quantity of transit trade BOPP packing material.

Sources told Customs Today that packing material was valued Rs 5 million. The customs ASO, on the directives of Customs Collector ZulNiqar Younis raided a godown in Laurex Colony Badami Bagh and detained the BOPP following being convinced that the packing material was imported under transit trade and was illegally brought into Pakistan. The sources said that the godown is owned by a trader who is identiNied as Sheikh Khuram. The customs authorities have registered a case and started investigations.

Meanwhile, Customs Preventive Anti-Smuggling Organization (ASO) has seized six vehicles worth Rs 15 million, ofNicial sources told Customs Today here. The sources said that on the directions of Collector of Customs (Preventive) Zulifqar Younus, the Anti Smuggling Organization headed by Assistant Collector Dr Muhammad Adnan Khan, initiated a crackdown against non-dutypaid vehicles and seized six vehicles which include two Toyota Mar-X cars, Honda Inspire car, Toyota Prius car, Toyota Lexus Hybrid jeep and Wrangler jeep. The value of the vehicles is around Rs 15 million.

It was said that the cases have been registered and further investigations are underway.

Meanwhile, Customs Preventive authorities have seized smuggled goods worth Rs 2 million during a crackdown. According to ofNicial sources, the staff of the Anti-Smuggling Organisation Customs Collectorate (Preventive), in pursuance to an information under the supervision of Assistant Collector Dr Muhammad Adnan Khan, intercepted a bus regis-

ASo, on the directives of customs collector Zulfiqar Younis raided a godown in Laurex colony Badami Bagh and detained the Bopp following being convinced that the packing material was imported under transit trade and was illegally brought into pakistan

Sargodha ASo seizes non-duty paid hino truck FAISALABAD

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NAeeM SheIkh

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he Anti-Smuggling Organization ( ASO ) Sargodha has seized foreign origin Hino truck bearing registration No. TKA385 model 1993 worth Rs 3 million during a crackdown.

Sources told Customs Today that Collector ZulNiqar Chaudhary received information regarding some

smuggling attempts. He formed an ASO team under the supervision of Deputy Collector Rana Falik Shair which also included Azhar Hussain Jafri, Bashir Ahmed (inspector), Abdul Hameed, Muhammad Feroz, Muhammad Mansha, Muhammad Ashraf, Muhammad Amin, Muhammad Iqbal and Shafqat Mehmood (sepoys ). The ASO team intercept Hino truck near Lahore Sargodha bypass. The ASO team asked driver of the vehicle, who was identiNied as Muhammad Umar son of Abaid Ul-

lah, to produce legal documents regarding the possession of the vehicle but he failed to show any legal documents. The ASO team seized the vehicle and forwarded the case to the customs adjudication.

Meanwhile, Customs Adjudication Deputy Collector Asma Hameed has issued seven show-cause notices to accused parties. These notices were issued through Anti-smuggling Organization (ASO) Mianwali, Customs Intelligence Faisalabad, and ASO Faisalabad.

tration No.LWC-9271 and recovered smuggled goods, including cloth, LEDs , shampoo and iron. The bus was carrying these goods from Peshawar to Lahore. The value of the goods is more than 2 million in local market.

ASO team asked the owner of bus to provide legal documents regarding possession of above said items, but he failed to produce any documents.

ASO team seized the items and forwarded the case to customs adjudication for further proceedings.

customs court remands alleged cloth smuggler he Special Court of Customs Taxation and Anti-Smuggling has sent a suspect allegedly involved in smuggling of foreign origin cloth on physical remand for four days. An accused Muhammad Ali was booked by the Faisalabad Customs Intelligence when he was transporting a consignment of Korean and Indian made cloth loading on a truck.

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Senate body for improvement in precious stone mining, export Saturday, April 2, 2016

Business

ISLAMABAD: The Senate Standing committee on Industries and Production has directed Pakistan Stone Development Company (PASDEC) to improve its performance in mining and selling of precious stones in the world market. Pakistan Gems and Jewellery Company CEO Bakhtiar Khan informed the Senate body that Pakistan exports gold worth $4 billion annually, adding, “The country exports 170 tonnes of gemstones.” Matter of supply of electricity to Marble City Risalpur was also discussed in detail. Committee was informed that the cost of electricity supply to the Marble City is Rs125 million. PASDEC has deposited Rs86 million and a temporary connection of 2MW has been provided.

pSX gains 310 pts to reach 33449 pts level KARACHI

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he Pakistan Stock Exchange (PSX) Friday gained 310.62 points to cross psychological barrier of 33,000 mark and reached 33449.62 points level at closing. The stocks recorded the highest trading level of 33467.7 points and lowest level of 33121.81 points, with the volume of 119.96 million shares, having about Rs 8.25 billion value. As many as 335 companies were active; of which 209 advanced, 101 declined and 25 remained unchanged.

Cement sector was the top traded sector with 45,916,600 volume,

petrol price hiked by rs 1.5 to rs 64.27/litre ISLAMABAD

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fter a partial hike in international fuel prices, the government has increased petrol price by Rs 1.50 per litre for the month of April. The Oil and Gas Regulatory Authority (Ogra) had recommended Rs5.64 increase in petroleum prices. But Prime Minister Nawaz Sharif decided to only partially raise prices of petrol while approving Ogra’s proposal on raising prices of high speed diesel.

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while technology and communication remained second with 28,594,500 volume. The three top traded companies were TRG Pak Ltd

with a volume of 22,154,000 and price per share of 29.85 (1.42), Dewan Cementer with a volume 19,724,000 of price per share of

14.08 (0.78),TPL Trakker Ltd with a volume 11,084,000 of price per share of 13.89 (0.99). The top three gainers were Shezan Inter price per share 514 (22.79), Pak Tobacco with price per share of 1340 (20.31) and SanoNi-Aventis price per share of 500 (20.00). The top three losers were Wyeth Pak Ltd XD with price per share of 1635 (-55), Bata Pak with price per share of 3450 (48.34) and Murree Brewery per share of 770.01(-29.89). Earlier, the bullish note continued till midday as PSX increased by 31 per cent or 102.09 points to reach 33241.09 points level on Friday. The stocks recorded the highest trading level of 33271.02 points and lowest level of 33121.81 points, with the volume of 92 million shares, having about Rs4 billion value.

cDwp approves several uplift projects worth rs 218.2 billion ISLAMABAD

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he federal government has approved several development projects worth Rs 218.219 billion. The Central Development Working Party (CDWP) meeting, chaired by Federal Minister for Planning, Development & Reforms Ahsan Iqbal, also referred seven projects of Rs.203.483 billion to the Executive Committee of the National Economic Council (Ecnec).

The meeting recommended the energy, water resource, transport & communication, physical planning & housing, higher education, education governance, planning, development & reform sectors projects to the Ecnec. The meeting was attended by senior federal and provincial government ofNicials. In transport & communication sector, the CDWP recommended construction of motorway from Hakla/Burhan on M-1 to DI Khan at the cost of Rs129.781 billion, as part of western route of China-Pakistan Economic Corridor (CPEC). The meeting also approved installation of

ship lift and transfer system and associated machinery& equipment to provide docking and facilities to surface ships, submarines and commercial vessels up to dead weight 7.781 tons net lifting capacity at the cost of Rs 9.819 billion. It also approved and recommended bridge across the River Indus connecting Larkana and Khairpur districts, approach road and river training works at the cost of Rs 13.796 billion. The Central Development Working Party approved 35km Musa Khail Tounsa Road stretch to be constructed and linked with Zhob at the cost of Rs 2.991 billion.

textile millers ask govt to levy 15% duty on manmade fibres import LAHORE

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he textile millers have asked the government to impose 15 per cent regulatory duty on the import of man-made fibres, particularly the polyester viscos yarn, polyester cotton yarn and pure polyester yarn. All Pakistan Textile Mills Association (APTMA) Chairman Tariq Saud raised this demand while speaking at a meeting of the member mills, held at the Punjab office of the association to review the import statistics of the man-made fibre yarn, which has increased by four times in the last four years and is likely to reach 57,000 tonnes per annum by the end of 2015-16.

Tariq Saud noted that surge in the import of man-made fibre (MMF) yarns had become a matter of serious concern for the domestic industry since it posed a serious threat to the survival of around two million spindles with over three million direct and indirect workforce both upstream and downstream. He further said the textile industry had taken up the issue with the government, and was seeking an immediate imposition of 15 percent regulatory duty on the import of all MMF yarns.

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garments manufacturers flay hike in eoBI share KARACHI

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he readymade garments manufacturers have slammed the recent excessive increase in the shares of contribution by the Employees Old-age BeneNit Institution (EOBI). Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) South Zone Acting Chairman Arshad

Aziz, in a statement, said it is injustice that the EOBI has suddenly increased the EOBI shares of contribution with effect from July 1, 2012 to July 1, 2015.

“The minimum wage for Unskilled Workers Ordinance 1969 has been amended by the Minimum Wage for Unskilled Workers Amendment Act 2016, which is applicable only to Islamabad Capital Territory. A peculiar feature of this act is that the law has been given

retrospective effect from 2012,” he added. The textile industry, which is the backbone of the country and a job-creating sector, is already suffering due to billion of rupees that are stuck with the government on account of sales tax, duty drawbacks and drawbacks on local taxes and levies (DLTL), he said.

Moreover, he added that exports are decreasing fast and units are closing, and in this critical situation, EOBI notiNication with a liability of four

years would tantamount the industry to jeopardise. Meanwhile, The Asian Development Bank, in its latest report, has projected positive results, saying Pakistan’s economy will continue to pick up in the ongoing Niscal year of 2015-16. The ADB, in Asian Development Outlook (ADO) 2016 report, forecast growth of 4.5 percent for FY16 and 4.8 percent for FY17. In FY15, the growth came in at 4.2 percent. While the outlook is for moderate gains in growth, the report

said the continued public sector enterprise losses, insufNicient energy and power evacuation capacity, and security concerns will continue to test the country’s economy. ”Pakistan needs to stay the course of macroeconomic and structural reforms, in particular in revenue collection, the energy sector, and in revitalising public sector enterprises that have been causing a Niscal drain,” Werner Liepach, ADB’s Country Director for Pakistan said in a statement.

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ISLAMABAD M ArShAD www.customsbulletin.com

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akistan and Afghanistan have concluded the first round of negotiations on Avoidance of Double Taxation Prevention of Fiscal Evasion with slight progress and development as both sides could agree to continue with discussions as well as to take up the rest of issues in the second round of negotiations in future.

Member Strategic Planning, Reforms and Statistics Dr Muhammad Iqbal told Customs Today that both the countries had a unanimous view that double taxation was hurting the bilateral trade activities as well as making the each other’s markets noncompetitive for either side’s traders.

He further said that both the delegations agreed to make efforts to facilitate traders. “However, signature on a Double Taxation Avoidance Treaty is a long journey to go ,” he observed.

Explaining the future course of talks, he said that delegations would present their findings with the respective ministries and the ministries would move a package of recommendations and proposals to each other through ministries of foreign affairs.

“With active participation of foreign affairs’ ministries in terms of extensive correspondence, both sides will agree on a final date for second round of negotiations on the said matter” he added. “Rounds after rounds of talks will be held

for developing consensus between both the countries on an agreed draft of agreement and then the agreement will be signed” he concluded.

It is pertinent to note here that the first round of negotiations between Pakistan and Afghanistan on the convention for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect to taxes on oncome was concluded here recentl. The Pakistan delegation was headed by Mohammad Iqbal, Chief (International Taxes) and included Malik Amjed Zubair Tiwana (SA to Chairman, FBR), Sajida Kausar, Secretary (TT&C), and Khalid Jameel, Secretary (SPR&S). The Afghan delegation was headed by Mujeeb ur Rahman Shirzad, Director General of Revenue and included Abdul Wali Noori, Legal Services and Policy Director and Nekmatullah Khostwal, Director International Tax Policy, Afghanistan Revenue Department.

The inaugural session was presided over by Rehmatullah Khan Wazir, Member (Inland Revenue Policy) who welcomed the delegates from Afghanistan and hoped that the proposed tax treaty between the two brotherly countries shall foster economic relationships and contribute to the development of both the countries.

The negotiations were conducted in a shar spirit of friendship and mutual understandi and the two delegations reached agreeme on most of the provisions of the convention The remaining issues shall be discussed the second round of negotiations.

told Iqbal d a m th the ham Dr Mu day that bo view s to ous custom ad a unanim hurting s ries h on wa es as i t a count x a t i ouble activit ’s that d teral trade other h c a l a i e b the g the or makin mpetitive f s a l l we co s ts non e k r trader a ’s m e d i s either

red ing ent n. in

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Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

eDItorIAL

pakistan, Iran economic relations

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f Pakistan is the emerging economy, Iran is the emerging economic power. Both the countries are intermingled in historic, cultural and religious bonds and time is ripe to strengthen economic relations. Economy reigns supreme in modern diplomacy, but it is more than diplomacy as economy is the only binding force which keeps the nations of diverse ideologies and geographies all together. The recent visit of Iran’s President Hassan Rouhani is a good omen. Iran is not only our immediate neighbor, but also partner in business and trade. During Rouhani’s visit, both countries stressed the need for removing non-tariff barriers to take bilateral trade volume up to $5 billion in next five years.The current bilateral trade hovers around $270 million. Pakistan and Iran have signed a document, covering a five-year plan to enhance strategic cooperation and usher in a new era of bilateral trade and economic relations between the two countries. Prime Minister Nawaz Sharif and President Rouhani both have attached highest priority to trade and economic cooperation. The areas covered in the plan are deepening preferential agreement, holding exhibitions in each other’s country, establishment of joint border trade points and revival of joint business council. If high tariffs, exorbitant visa fee and taxes are serious obstacles in the way of Pakistani products to enter the Iranian markets, the Pakistani policymakers have also failed to give easy access to Iranian products in the country. As a result, illegal trade is flourishing and the communication gap between the two countries have allowed smugglers to fill the vacuum. If Pakistan needs excess to Iranian markets, it will have to open its own markets for Iranian products. However, there is a need to look into the future and not in the past and that is something which the leadership of the two countries has to do. Iran is willing to join the China Pakistan Economic Corridor as well as wants Pakistan to honour international commitments with regard to the Pak-Iran gas pipeline project. The two projects are not only in favour of Pakistan, but also for Iran and this is the best step forward on the road of regional integration. The State Bank of Pakistan has already revived banking relations with it Iranian counterpart, but the two countries still have to go a long way to identify opportunities and remove impediments.

reality about macroeconomic indicators F

LAHORE

Dr AFtAB AFZAL

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inance Minister Ishaq Dar has claimed that macroeconomic indicators are showing a modest growth of 4.24 percent in the gross domestic product during the current Niscal year. The lower oil prices in the international market has resulted in the decline of consumer price index at 2.48 percent during July-February 2015-16 as compared to 5.45 percent in the same period last year. The large-scale manufacturing sector has recorded a growth of 4.12 percent and the government is likely to set a growth target of 5.5 percent for the next Niscal year. The tax collections have

increased by 17.2 percent during July-February 2015-16 while credit to private sector has been expanded by more than 100 percent during nine months of the current Niscal year. The rising volume of machinery import indicates that development activities are picking up with increased consumption of electricity and gas in the industrial sector. The government has increased the public sector spending to Rs700 billion.

On Niscal side, the current account deNicit has come down to $1.859 billion during July-February 201516 from $1.947 billion last year, thanks to stable exchange rate, increase in foreign exchange reserves and positive growth in the volume of remittances by expatriate Pakistanis, which have reached

over $20.5 billion in the Nirst 20 days of this month. The total foreign direct investment in the country has reached $647.9 million as compared to $619.6 million last year while the indicators of debt sustainability have also improved.

The State Bank has lowered policy rate to 320-basis-point, which has led to doubling of the credit disbursement to private sector during the current Niscal year. However, despite the fact that all the all micro and macroeconomic indicators show positive signs of development, why the exports are declining and why the government has to consult the International Monetary Fund and donor agencies for bail out packages is a question which needs an answer. Apparently, the government has failed to cover all

aspects of the economy. There is no doubt in the good intention of the Ninance minister, but his team of experts lacks vision and velour to modernize the economy. The countries like Vietnam are progressing with leaps and bounds, but the economic managers in Pakistan are grappling in the dark not knowing exactly what to do and where to go. Pakistan, the 40th largest economy in the world in nominal terms and 26th largest in terms of purchasing power parity, seems to be always at a cross road.

Until and unless the government overhauls the bureaucratic system and its policymakers agree to learn from the experiences of other nations, the country will continue to face consequences of uncertain and confused policies.

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McDonald’s to add 1,500 outlets in China, S Korea, HK NEW YORK: McDonald’s Corp yesterday said it plans to open 1,500 new restaurants in China, South Korea and Hong Kong as it looks to faster-growing markets to help drive a global turnaround.

McDonald’s said it is looking for partners to help finance that expansion.

The company said it would also give local managers more decisionmaking power to respond to Asian customers. McDonald’s, based in Oak Brook, Illinois, is overhauling its business under CEO Steve Easterbrook after acknowledging it failed to keep up with changing tastes. Its total number of diners fell last year. “Asia represents a significant area of opportunity for McDonald’s to blend our global quality standards with local insights and expertise from partners who share our vision and values,” Easterbrook said in a statement.

tax concessions worth rs 120b to be withdrawn ax concessions worth Rs 120 billion will be withdrawn in the budget 2016-17 as concessions worth Rs221 billion given through SROs have already withdrawn. This was revealed by Special Assistant to the Prime Minister on Revenue Haroon Akhtar during his visit to the Overseas Investors Chamber of Commerce and Industry (OICCI) to discuss its taxation proposals for the federal budget 201617. Haroon Akhtar, appreciating OICCI’s taxation proposals, said the government was aggressively pursuing the initiative to broaden the

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tax base, adding, “The Federal Board of Revenue (FBR) is now very well-equipped with data and skills to catch evasion.” He said the recently introduced Voluntary Tax Compliance Scheme (VTCS) was part of the tax broadening process and it was only a matter of time that the tax evaders, including those not paying duty on cigarettes and other products, would be caught and punished. “The FBR’s IT infrastructure is undergoing substantial improvement. This would not only connect various available databases to identify new taxpayers but would also address operational issues of taxpayers,” he added. The special assistant to the PM found the Tax Reform Commission (TRC) to be of high quality and said he was chairing a committee to monitor its implementation on a priority basis. Haroon expressed confidence that the vastly improved macro-economic parameters will provide a launching pad for growth-oriented economic policies in the upcoming budget. —CB Report

Saturday April 2, 2016

Chambers

Qatar interested in building power plants in pakistan: envoy Q

ISLAMABAD

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atar Ambassador Saqr Bin Mubarak Al-Mansouri said that his country was interested to build two power plants in Pakistan for which initial studies were in progress. He said Qatari and Chinese companies were already working on four coal-based power plants in Pakistan and construction of two power plants by Qatar would go a long way in reducing Pakistan’s energy problem.

He expressed these views during an interaction with business community at Islamabad Chamber of Commerce and Industry (ICCI).

He said Qatar was giving priority to Pakistan for promoting trade and economic relations and signing of LNG deal between Pakistan and Qatar was a positive development to bring the two countries even closer.

He said next meeting of Qatar-Pakistan Joint Ministerial Committee will be held in Pakistan this year which would be a good forum to discuss new areas of mutual cooperation. He said over 112000 Pakistanis were working in Qatar and making useful

contribution to its economic development. He said Qatar planned to import more manpower from Pakistan for its various ongoing projects.

He said exchange of trade delegations was an effective tool to explore new areas of trade promotion. He said Qatar was already importing many Pakistani products including rice, medical equipment, medicines, sports goods, dry fruits, leather products, Nish etc. and was interested to

import more products from Pakistan.

He said Qatar allowed 100 percent foreign investment in speciNic sectors and Pakistani investors should take beneNit of such incentives. He said both countries have good potential to enhance cooperation in many Nields and his Embassy was ready to cooperate with Pakistani entrepreneurs in Ninding out business prospects in his country. In his welcome address, ICCI Presidnt Atif Ikram Sheikh said

that bilateral trade of less than $300 million between Pakistan and Qatar was much below their real potential and stressed that both countries should facilitate private sectors in improving two-way trade. He said ICCI was interested to sign MoU with Qatar Chamber of Commerce to improve business linkages between the two countries and Qatari embassy should cooperate in realizing this objective.

Promoting garments trade

prgMeA, chinese investors join hands

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LAHORE

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akistani readymade garments manufacturers and Chinese investors have signed a memorandum of understanding (MoU) to promote and expand cooperation between Pakistan and Chinese textile and apparel companies.

The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) and China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT) inked the MoU during a ceremony, held during China Asia Textile Forum 2016 at Shanghai.

PRGMEA chief coordinator Ijaz Khokhar signed the MoU on behalf of the association, while China Chamber of Commerce for Import

and Export of Textile and Apparel was represented by its chairman Jiang Hui. The forum was attended by major apparel associations and many leading Chinese garment companies from the whole Asia.

It is the Nirst time that a Pakistani garment sector body signed such an agreement with the overseas stakeholders for strengthening mutual trade of garment and textile.

As per the MoU, PRGMEA will provide visa assistance to Chinese companies through invitation letters. In Nirst phase, CCCT delegation is visiting Pakistan to attend Texpo Fair being held Nirst time in Pakistan from April 7 to 10. PRGMEA will arrange factory visits for Chinese delegation, and B2B meetings with its members. PRGMEA also plans to arrange a trade delegation to visit China by the end of this year.

It is expected that Chinese companies will establish their units at CPEC Economic zones through joint ventures of the local companies, with PRGMEA playing leading role after striking this deal with CCCT. PRGMEA and CCCT have also agreed to deal with managing business contacts, seminars, business meetings, presentations, exhibitions, fairs holdings and other arrangements to make potential partners and export possibilities available in the two countries. In his presentation, PRGMEA chief coordinator Ijaz Khokhar highlighted the overall situation and development trend of Pakistan’s garment sector and textile industry. He said that CCCT as part of the Ministry of Commerce is the largest textile and apparel trade agency both in China and the world.

kccI strongly condemns Lahore suicide blast he leadership of Businessmen Group (BMG) and office-bearers of Karachi Chamber of Commerce and Industry (KCCI) have strongly condemned the suicide attack at Gulshan Park in Lahore in which at least 72 people were killed and more than 300 people were injured. In a statement issued, Chairman Businessmen Group and former President KCCI Siraj Kassam Teli, Vice Chairmen BMG and former Presidents KCCI Tahir Khaliq, Zubair Motiwala, Haroon Farooki and Anjum Nisar, President KCCI Younus Muhammad Bashir, Senior Vice President Zia Ahmed Khan, Vice President Muhammad Naeem Sharif extended their deepest condolence to the bereaved families.—CB Report

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Asia’s Feb imports of Iran oil hit 2-year high Saturday April 2, 2016

World

TEHRAN: Asian imports of Iranian oil jumped nearly a quarter from a year earlier to a two-year high in February, as shipments into India and South Korea roughly doubled weeks after international sanctions were lifted on Tehran’s disputed nuclear programme.

International oil and shipping companies have been eager torenew business with Iran since sanctions related to its nuclear programme were lifted in January. Tehran’s exports may also get further support as progress has been made on reinsurance issues that had been hampering its oil trade.

Aside from the greater volumes taken by Asian buyers, Iran’s oil flows to Europe have also begun to pick up after a slow start.

Fewer syndicates using drug mules for smuggling KUALA LUMPUR

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rug trafNicking syndicates seem to be phasing out drug mules and opting for more creative ways to smuggle their illicit products. Of all the cases detected this year, only one involved a drug mule smuggling drugs.

Bukit Aman Narcotic Crime Investigation (NCID) Department deputy director Deputy Comm Datuk Mohd Dzuraidi Ibrahim said that between Jan 1 and March 24 this year, 5,012 suspected drug suppliers were arrested. “We also arrested 11,093 for possession while 33,350 people tested positive for drug abuse. “We also seized RM58.37mil of drugs, including 1.5 tons of ganja, 233.1kg of syabu, 72.5kg of heroin, 31.4kg of ketamin, 596,153 Yaba pills, 542,463 Erimin 5 pills and 89,313 ecstasy pills,” he

uS, hong kong bust huge smuggling operation nited States and Hong Kong authorities have smashed a massive operation smuggling Chinese-made clothing, believed to be the largest such find ever uncovered on the US West Coast. The elaborate scheme involved more than $600 million worth of Chinese-made apparel being illegally imported into the United States under the guise that the merchandise was destined to companies in Mexico, when in fact it was delivered to buyers throughout the United States.

The multi-national operation was aimed at avoiding US import duties and quotas, officials said. An investigation launched by the US and Hong Kong governments in 2000 revealed that more than 7,000 shipping containers of clothing had been imported into the United States as a result of the smuggling ring, whose operatives were based in China.—CB Report

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told reporters at Bukit Aman yesterday. He said based on their observations, drug smugglers favoured smuggling in their products in cargo compared to hiring drug mules.

DCP Mohd Dzuraidi said police recently crippled two attempts by a syndicate to smuggle drugs into the country. “The drugs, which were believed to have been brought in from China, were hidden in laptop adapters and water Nilters,” he said.

He added that the Bukit Aman NCID and Special Tactical Intelligence Narcotics Group (STING) team conducted two raids at Taman Usahawan Kepong and caught two Nigerian men and a 30-year-old woman from Uganda on March 25. “When we arrested the two men, we found 13.2kg of syabu hidden in water Nilters.

“When we raided the suspect’s house, we found the woman,” he said, adding that the three suspects did not have any documents. DCP Mohd Dzuraidi said three days later they arrested a 33-year-old local woman in Tasik Perdana Industrial Area.

uS customs seizes meth, marijuana worth $1,600k HIDALGO

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S Customs and Border Protection, OfNice of Field Operations (OFO) at the Hidalgo International Bridge intercepted two men attempting to smuggle $1,600,000 worth of alleged methamphetamine and marijuana in separate, unrelated incidents. “Good Friday was good in more ways than one this year as our CBP ofNicers detected two outstanding seizures of illicit narcotics that were being illegally introduced at one of our international bridges,” said Port Director Efrain Solis Jr., Hidalgo/Pharr/Anzalduas Port of Entry.

Packages containing 212 pounds of marijuana seized by CBP ofNicers at Hidalgo/Pharr/Anzalduas Port of EntryThe Nirst seizure occurred on March 25, at the Hidalgo-Reynosa

AIMS report recommends Atlantic canada taxation changes

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new report is calling on Atlantic Canada’s provincial governments to adopt the taxation policies of neighbouring New England states. “Atlantic Canada has struggled for decades with low investment, which leads to high unemployment and net outNlows of people,” said Mark Milke, author of Tax Competitiveness: New England and Atlantic Canada Compared.

“High tax rates don’t help reverse that.” Released by the Halifax-based Atlantic Institute for Market Stud-

ies (AIMS), the report recommends Atlantic Canadian provincial governments allow for further resource exploration and development, move to a simpler income tax code with emphasis on lowering business taxes and spending restraint.

“There is a practical reason to allow natural gas development extra royalties and extra business taxes that then can be used to reduce overall high business and personal tax rates in the region,” said Milke.—CB Report

International Bridge after a CBP ofNicer referred a brown 2000 Chevy Cheyenne pickup truck for further inspection. While inspecting the pickup driven by a 21-year-old man from San Antonio, Texas in secondary, ofNicers discovered 44 packages of alleged marijuana hidden within the truck’s bed. CBP OFO seized the nearly 212 pounds of marijuana worth approximately $42,000 and

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seized the Chevy truck as well.

The second interception occurred the same day at the same border crossing. This was the result of a secondary inspection of a white 2004 Ford F-150 pickup truck driven by a 45-year-old man from Juarez, Nuevo Leon, Mexico. OfNicers discovered almost 77 pounds of alleged liquid methamphetamine hidden within the vehicle.

IcBc net profits up 0.5% in 2015 ndustrial and Commercial Bank of China (ICBC), the country’s largest lender, announced Wednesday that its net proNits grew 0.5 percent in 2015 to 278 billion yuan ($43 billion).

“The rate was moderate, but the amount of our net proNits was actually quite large,” said ICBC chairman Jiang Jianqing, adding that the amount was equivalent to the total of eight years from 2000 to 2007. ICBC’s non-performing loans (NPL) increased by 55 billion yuan to 179.5 billion yuan at the end of 2015. But assets set aside by the bank as provision account for 156 percent of the bad debt. “The

quality of ICBC’s assets remains sound, and we are capable of solving the NPL problem,” said Jiang. He added that guarding against credit risks is ICBC’s priority in 2016. Meanwhile, Chen Siqing, president of BOC, said: “Commercial banks have reached the end of the era when they had double-digit proNit growth and have entered the age of single-digit growth. “But this is quite normal as banks are facing pressure from slowing economic growth and increasing risks. At the same time, they have to shoulder the responsibility to support the real economy by lowering interest rates.”—CB Report

SL customs nabs Indian for smuggling foreign currency

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COLOMBO

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n Indian national, who attempted to smuggle foreign currency out of Sri Lanka, was arrested at the Bandaranaike International Airport (BIA) in Katunayake this morning, Sri Lanka Customs said. The Customs ofNicials

arrested the Indian national when he was preparing to board a Nlight to Sharjah. The 44-year-old suspect had currency equivalent to Rs. 7.5 million. Further investigation into the matter is still on. Meanwhile, Four Maldivians who tried to smuggle three kgs of heroin to Sri Lanka were arrested by the neighouring country’s police on Saturday, Sri Lanka media has reported. Police

Media Spokesperson ASP Ruwan Gunasekara was quoted by a Sri Lankan newspaper who said police arrested a Maldivian couple who tried to smuggle three Kg of heroin outside the airport as a result of a long term investigations with the Maldivian authorities in order to thwart the ongoing narcotics trade between Sri Lanka and Maldives.

The couple had packed the heroin in

their bags. After interrogation of the couple, two more Maldivians were arrested. The Police Spokesman said this was a drug ring run by Pakistan, Sri Lanka and Maldives nationals.

“We have further interrogated these suspects and arrested three more Sri Lankans, including the Sri Lankan ring leader,” he said. “Our department has been sharing information with the Maldivian authorities.

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BPPT joins forces with Japan for port development JAKARTA: The Agency for the Assessment and Application of Technology (BPPT) has established cooperation with Japan’s Port and Airport Research Institute (PARI) to address coastal degradation and port development in Indonesia. BPPT said that coastal degradation is one of the issues being faced by Indonesia, besides the issue of interislands logistic distribution, which include port management. Wahyu Widodo Pandoe, BPPT’s Director of Maritime Industry Engineering Technology Center revealed a number of points highlighted in the memorandum of understanding, among others, coastal degradation prevention study and Subang port study. President of PARI Shigeo Takahashi asserted that the cooperation is expected to bring benefits for both countries.

Drunken captain runs ship aground in german port ship captain is facing charges of endangering naval traffic, after blocking access to the German port of Rostock while he was under the influence of alcohol, police say. The 85metre (279ft) long cargo ship the Abis Bergen ran aground as he tried to steer it out to sea. Police said he was “absolutely unfit for duty”. The identity of the captain has not been made public.

Police said he risked causing an accident. A breathalyser test, carried out after harbour police smelled alcohol on the captain’s breath, established he was over the legal limit. The ship was refloated using tugboats and steered back into the harbour in north-eastern Germany. There are no reports of injuries or damages.

Meanwhile, The Port of Vancouver already is a zone of foreign trade. But officials want to capitalize on that commerce by creating a county-wide Foreign-Trade Zone. The port is in the early stages of applying for the federal Foreign-Trade Zone designation, or

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FTZ, which would encompass all of Clark County. The designation would allow firms here to streamline international business. It also could delay, and possibly reduce, certain duties and tariffs, among other benefits.

“It’s fairly common and very beneficial for communities, especially those with strong ports,” said port spokeswoman Abbi Russell. The ports of Longview and Tacoma each have an FTZ designation, she added. Like most things involving international trade, there’s nothing simple about the FTZ. Like “free-trade zones” in other countries, the zone allows goods to enter the U.S. without normal tariffs. It’s as if imported goods never enter the country until they leave the zone.—CB Report

Ports & Shipping

Veterans service officers gather in port huron

Saturday April 2, 2016

Japan govt buys control of Yokohama, kawasaki ports apan’s government on Friday acquired a majority 50 percent stake in the company operating the ports of Yokohama and Kawasaki for 500 million yen ($4.4 million), allowing the terminal operator to jack up its capital investment.

The move is part of a series of steps taken since 2010 to strengthen the international competitiveness of the country’s ports by increasing funding from the national government and consolidating port administrations and planning. The national government took the stake in in the company, which was established in January, by acquiring new shares issued under a third-party allotment scheme, Japan’s transport ministry said. The company’s official English name has not been released, but translates as YokohamaKawasaki International Port Corp. Other investors include the municipal governments of Yokohama and Kawasaki and one of Japan’s top three banks, Sumitomo Mitsui Banking Corp. The Yokohama government, the Kawasaki government and Sumitomo Mitsui Banking now hold stakes in YokohamaKawasaki International Port of 45 percent, 4.5 percent and 0.5 percent respectively, according to the transport ministry. The Port of Yokohama is one of Japan’s five biggest container ports, along with the ports of Tokyo, Kobe, Nagoya and Osaka.—CB Report

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WASHINGTON

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bout 100 veteran service ofNicers gathered at the Blue Water Convention Center this week to learn the ins and outs of veteran beneNits.

The Spring Education Conference from Tuesday through Friday brought veterans’ agencies from around the state to Port Huron. The service ofNicers attended the conference to maintain their accreditation with Veterans Affairs. Veterans service ofNicers are accredited by the federal VA to assist veterans in sub-

mitting beneNits claims and appeals to the VA. “There’s different regulations and rules that change throughout the year so having these different meetings throughout the year is helpful,” said Chris Smith, director for the St. Clair County Department of Veterans Affairs. Smith, who attended the four-day conference, said the event also served as a networking opportunity. “One person or one group isn’t going to be able to serve all the veterans; so being on the same page makes it a lot easier to make that connection,” Smith said.

“Knowledge is great but knowing who to talk to is really where things get accomplished.” Veterans services ofNicers are required to get 16 continuing education credits each year

to maintain their accreditation with the VA. The four-day conference at the convention center counted for 16 continuing education credits, said Rob Price, director for targeted outreach at the Michigan Veterans Affairs Agency. Though their numbers are few, the service ofNicers are integral in assisting Michigan’s 600,000plus veterans with beneNits applications. “There are only 200 of us in the state of Michigan who are accredited,” Price said. James Redford, interim director for the Michigan Veterans Affairs Agency, said he would love to expand that number.

Redford, who was appointed as head of the agency in February, spoke to the service ofNicers gathered at the convention center Friday.

Indonesia, Japan cooperate to enhance ports

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JAKARTA

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he Technology Assessment and Application Agency (BPPT) will cooperate with the Port and Airport Research Institute from Japan to mitigate environmental damages on beaches and to improve Indonesian ports.

BPPT stated that one of the problems faced by Indonesia include damaged beaches, logistics distribution, and port management.

Wahyu Widodo Pandoe, Director of BPPT’s Center for Maritime Technology Engineering said that one of the points included in the Memorandum of Understanding between BPPT and PARI was a study on beach damage prevention and port development in Subang.

Shigeo Takahashi, the President of PARI stated that the cooperation is expected to bring beneNits to both countries. “On a greater scale, we expect the cooperation’s results can be applied, not only in Indonesia and Japan, but also in all Asian coun-

tries,” Takahashi said in a press release as quoted by Bisnis.com on Meanwhile, The Agency for the Assessment and Application of Technology (BPPT) has established cooperation with Japan’s Port and Airport Research Institute (PARI) to address coastal degradation and port development in Indonesia.

BPPT said that coastal degradation is one of the issues being faced by Indonesia, besides the issue of inter-islands logistic distribution, which include port management.

Wahyu Widodo Pandoe, BPPT’s

Director of Maritime Industry Engineering Technology Center revealed a number of points highlighted in the memorandum of understanding, among others, coastal degradation prevention study and Subang port study. President of PARI Shigeo Takahashi asserted that the cooperation is expected to bring beneNits for both countries. “In a larger scale, we also expect the cooperation outcome to be applied not only in Indonesia and Japan, but also across Asia,” Takahashi said as quoted by Bisnis.com on Monday.

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Gujranwala Customs Intelligence impounds two Toyota Vitz cars SIALKOT: The Customs Intelligence and Investigation, Gujranwala has impounded two non-duty paid Toyota Vitz cars during an action. Customs Intelligence Deputy Director Muhammad Anwar deployed a team under the command of Intelligence Officer Saeed Ahmed Farooqui at LahoreRawalpindi GT road to hold the smuggled items and vehicles The team checked various vehicles on the road but two vehicles bearing Registration No. AAM-172 and AAN-427 were impounded as the driver of the vehicles could not show the documents regarding the legal import of the items.

Saturday, April 2, 2016

CUSTOMS BULLETIN

hyderabad Anti-Smuggling organisation seizes items worth rs 23 million HYDERABAD ASLAM ANJuM QureShI www.customsbulletin.com

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he Customs Anti-Smuggling Organization (ASO) seized smuggled items worth Rs 23.34 million involving duty/taxes of millions of rupees during an operation in Hyderabad.

Following the direction of Model Customs Collectorate Collector Agha Majeed Khan, the ASO team is conducting various operations in the regions in order to foil the smuggling bids, ofNicials said.

During recent operation, Additional Collector Omer ShaNique after receiving credible information formed a team comprising Superintendent Saleem Channa, Deputy Superintendent Sikanadar Pahnwar, Anwar Ahmad Siddiqui, Inspector Nazim Ali, Waqar Ahmad Baig and Abdul Ghaffar, Sepoys Sadique Khas Kheli, Usman Jonejo and driver Nisar Hemdani.

The team raided a godown near Hyderabad Market Police Station and recovered huge quantity of smuggled foreign origin goods, including 845 cartons of cigarette, 260 cartons of gutka, 288 shisha and other smuggled items.

Multan customs to launch new app to curb smuggling MULTAN

IMrAN ALI

www.customsbulletin.com he Customs Collectorate is going to develop a special application for android phones designed for proper evidence generation in anti-smuggling activities at the time of operation. The Customs Anti-Smuggling Organization is focusing on significant technology in extensive jurisdiction to curb smuggling. Deputy Collector Muhammad Ali Malik told

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Customs Today that the android application had been developed by him and went through the testing phase for its proper implementation. After testing of the application, it would be made operational very soon.

The purpose to develop new application will assist Multan Customs to trace location of the anti-smuggling squad during their field operations in jurisdiction. He told that before implementation of this newly develop application Customs staff will give sufficient training about the practical use of this

application to achieve their maximum results in field. We were given special training to develop new application during the mid-carrier management course and I planned to implement this application in antismuggling organization Multan.

Deputy Collector Muhammad Ali Malik told that application contains special features including monitoring of Customs squad and staff will upload the pictures of detained and captured goods at the time of operation. It will also record the operation timings of the

anti-smuggling organization during any kind of operation.

Customs will be given directions to upload details of the seized goods ,vehicles, place of location and owner picture during any action of the anti-smuggling activities . He told that major purpose of this application is to generate activity performed by staff and concerns of the offenders will also eliminate through transparency of this software. He told that smuggling is a national issue which is damaging our national revenue badly and we are trying to pro-

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tect our industry through execution of our powers in the right manners. Multan Customs will able to manage things effectively through this software application and due to evidence generation the investigation approaches will also progress in this way. He disclosed that due to improved enforcement of the Multan Customs revenue generation will also improve in jurisdiction and we apply this application in the DTRE for stock examination, import and export handling to avoid any misdeclaration by generating data.