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Vol 1 Issue No. 160
Karachi, Fri August 14, 2015
KARACHI
MUHAMMAD YOUSAF www.customsbulletin.com
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he Special Custom and Taxation Court on Wednesday asked the investigation ofOicer to submit Oinal charge-sheet in a case pertaining to issuance of fake and Olying sale tax invoices of more than Rs1 billion. Judge Syed Faiz Rasool Rashdi adjourned the hearing of case till August 26, 2015 with direction for investigation ofOicer Rashid Chandrigar to submit the Oinal challan.
Price Rs. 14.00
According to the ofOicials of Intelligence and Investigation Department of Inland Revenue, Karachi, the accused – Arshad Ali Khan, Javed Anwar Khan, Tauseef, and Rashid Ali Khan issued invoices in the name of bogus companies claiming over Rs 1 billion from the sales tax department.
Customs impounds smuggled goods, arrests accused
ASO Multan seizes smuggled items worth Rs 7.56m in July
Islamabad, Beijing sign 20 MoUs worth $2b at CPEC moot
Hyderabad ASO impounds Toyota Jimny worth Rs 1.2m
FCCI terms photo Journalists backbone of news media
Customs Investigation and Intelligence personnel have seized smuggled goods | See pAge 02 |
ASO has seized Rs.7.56 million smuggled goods and vehicles | See pAge 03 |
Minister for Planning, Development and Reforms Ahsan Iqbal has said | See pAge 04 |
The (ASO) has impounded a non-duty paid unregistered vehicleRs 1.2 million | See pAge 03 |
Photo journalists play an important role in making news more authentic, | See pAge 09 |
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Tax practitioners for taxing incomes not turnovers Friday, August 14, 2015
National
LAHORE: Withholding tax of 0. 3 percent on all banking transitions is violation of basic human rights and the government should withdraw it at once, besides income should be taxed not turnovers. Lahore Tax Bar Association General Secretary Qamar Uz Zaman made this demand while talking to Customs Today. He said that the government needs to make Federal Board of Revenue (FBR) workforce functional instead of making the organized sector like banking crippled by imposing taxes.
customs impounds smuggled goods, arrests accused
customs demolishes 126 illegal petrol pumps in gwadar KARACHI
wAQAr AMHeD AnSAri
LAHORE
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M HAYAt
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he Customs Investigation and Intelligence personnel have seized smuggled goods and articles worth millions of rupees and arrested the suspects, sources told Customs Today on Wednesday. Acting upon information, the customs authorities intercepted a truck coming from Rawalpindi and recovered millions of rupees circuits, breakers, polyester rolls and other items. The Customs authorities under the supervision of superintendent Nasir Minhas and Munawar Khan seized the smuggled items and arrested the accused. The sources further said that the smuggled items belonged to Nafees ur Rehman who registered goods and articles in the name of a goods and transporter company owner Akeel form Rawalpindi. Meanwhile, LAHORE: Customs Lahore Preventives’ Anti Smuggling Organization (ASO) has impounded two non-customs paid Honda Civic in the city. Sources said that the two white and black Honda Civics bearing Registration No. LXZ-228 and LWH-2219 were confiscated one at Bilal Gung and the other at Johar Town.
he Model Customs Collectorate Gwadar has demolished illegal petrol pumps in the city. According to details, the Customs authorities were receiving complaints about the construction of illegal petrol pumps in Gwadar. Sources told Customs Today, that after receiving these complaints Customs authorities adopts a comprehensive strategy to cope with the situation with iron hands. Customs authorities constituted a special team who demolished 126 petrol pumps. These petrol pumps were operating between the area of Hub to Wandar. Meanwhile, The Directorate-General of Customs Intelligence and Investigations Balochistan has foiled a bid to smuggle seeds for preparation of drugs into the country through Balochistan border. Sources said that the Customs Intelligence and Investigations received credible information about smuggling at Iran and Afghanistan borders. During a crackdown against smugglers, Customs authorities successfully seized 120 kilograms of seeds which were used for preparation of drugs.
It was reported that the total value of the two cars is estimated at Rs 2.4 million Sources said that on information Customs Inspector Sajad Bukhari and his team on the instructions of customs superinten-
dent Mumtaz Ajmal Mian raided the two different places and seized the cars. The sources said that cars were being use for household and were reported to the customs authorities.
The sources said that separate cases have been registered against the accused person and further investigation is under way. The ASO seized first two cars during the first two months of the financial year 2015-16.
Customs Court formally accuses Smart Zone, TCS of tax evasion, smuggling ISLAMABAD
M FAiZAn
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he Special Customs and Taxation Court has indicted a sole marketing company for Korean Samsung brand namely Smart Zone and a courier company, TCS following the charges of tax evasion and smuggling.
Chief Executive Smart Zone, Shakirullah, Directors of Smart Zone, Latifullah and Muhammad Asghar, while CEO TCS, Saqib Hamdani and Regional Manager Logistic Rawalpindi, Ghazanfar Gull were ofOicially accused by the court. However, all the accused denied the authenticity of the allegation. Therefore, Special Customs Judge Rana Aftab has directed the ofOicials of the Customs Investigation and Intelligence to present the evidence against the suspects in next hear-
ing. It is important to mention here that both companies are facing the allegation regarding the smuggling of non-duty paid electronic items into the country. Moreover, Customs Intelligence Rawalpindi had recovered smuggled items with Afghan Transit Trade stickers pasted on these items worth Rs 500 million from the godown the TCS located in the Rawalpindi in a raid. Customs Intelligence had registered FIRs against the CEOs and other ofOicers of the both companies.
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SHC orders customs to release Telenor Pakistan’s consignment KARACHI: The Sindh High Court on Tuesday ordered the customs authorities to release the Telenor Pakistan (Pvt) Limited’s consignment of batteries. The SHC’s division bench directed the petitioner company to deposit the disputed amount of duty before the Nazir of the court who will issue NOC for release of the consignment. Petitioner Telenor Pakistan (Pvt) Limited filed the petition naming Secretary Revenue Division and Collector Of Customs, Model Collectorate of Customs (WEST) as respondents.
FBr to introduce new audit policy soon ISLAMABAD
Friday August 14, 2015
National
Multan ASO seizes smuggled items worth rs 7.56m in July
SHAHiD MinHAS
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he Federal Board of Revenue (FBR) has almost completed its working on making a new audit policy draft which will be presented before the board council of FBR soon. Official sources told Customs Today that the FBR would audit the record of the past five years pertaining to the large taxpayers, three years record of medium level taxpayers and the two years record of small taxpayers to trace the defaulters if any. In this new audit policy, FBR would select 20 percent cases of large taxpayers, 10 percent cases from the list of medium level taxpayers and 5 percent cases of small taxpayers, they added.
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prA seals six fitness centres LAHORE
M iMrAn MeHAr
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unjab Revenue Authority Chairman Dr Raheed Ahmed Siddiqui has seized many fitness centers. These fitness centers are were located in Johar Town and DHA Z Block. These fitness centers were involved in non-payment of general sales tax. The fitness centers which are sealed includes Athar Fitness Center, SeaG Health Fitness Center, Vigour Fitness Center, Gensis Fitness Center. Sources told Customs Today, that rope will be further tightened against those who will found involved in non-payment of taxes. A case have been registered against owners of these fitness centers while further proceedings are still underway till the filing of this report.A case have been registered against owners of these fitness centers while further proceedings are still underway till the filing of this report.
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MULTAN
iMrAn ALi
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he Anti-Smuggling Organization has seized Rs.7.56 million smuggled goods and vehicles during the month of July 2015. According to details, Anti- Smuggling Organization from Multan has conducted various operations against the smuggled goods in the month of July and almost 10 different seizure cases have been formed against smuggled miscellaneous goods and non-customs paid vehicles from the jurisdiction of model of Customs Collectorate Multan. Customs had formed 17 seizure cases in the Oinancial year 2014-15 as compared to 10 seizure cases in the current Oinancial year 2015-16. As many as Oive various vehicles including Toyota Corolla, Hilux surf, Vitz were seized in the various operation of Anti-Smuggling Organization in the jurisdiction against the non-customs paid vehicles in the location. There was almost Rs 6.70 million vehicles have been seized in the several operations of ASO for the duration of July. As compared to Oiscal year 2014-15, Anti-Smuggling Organization has seized nine different vehicles of Rs 8.20 million in the month of July. Anti-Smuggling Organization has formed Oive other miscellaneous cases during the month of July. The worth of seized miscellaneous
goods and article becomes almost Rs 0.86 million. While in the previous economic year 2014-15, Antismuggling Organization had formed eight seizure cases in many antismuggling operations in the jurisdiction of MCC Multan. Anti- Smuggling Organization have seized smuggled items worth Rs 7.56 million in the month of July of current economic year 2015-16. In the Oinancial year 2014-15 ASO had seized the smuggled goods of Rs 13.15 million during anti-smuggling activities in the jurisdiction. Meanwhile, The Customs Anti-
Smuggling Organisation (ASO) Multan has seized 1,036 sets of new cell phones and 40,392 pieces of memory cards worth Rs 14 million here at Multan International
Anti-Smuggling Organisation has seized smuggled goods and vehicles in various operations
Khushab ASO impounds Hino truck worth Rs 3m
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he Customs Anti-Smuggling Organization (ASO) Khushab, which falls in the jurisdiction of Faisalabad Customs, has impounded a non-duty paid vehicle, Hino Truck worth Rs 3 million involving duty/taxes amounting to Rs 1.7 million. An ASO team, following the directions of Deputy Director Malik Jabed Iqbal, intercepted a vehicle
bearing Registration No SGA-038 near Sial Mor Khushab City. The ofOicials asked the owner namely Shakeel Ahmed to produce the documents showing the legal possession of the vehicle. But he could not show any documents on which the customs ofOicials took the vehicle into custody. However, after a considerable passage of time no one appeared before the seizing agency to claim ownership of seized of the vehicle or
to prove its legal import on which customs impounded the vehicle, besides sending contravention report to adjudication. ASO team comprising Superintendent Fareedud Din Masood, Intelligence Officer Muhammad Saleem, Saeed Khan and others conducted raid. ASO team comprising Superintendent Fareedud Din Masood, Intelligence Officer Muhammad Saleem, Saeed Khan and others conducted raid.
Airport. As per details, Deputy Collector Abdul Mueed Kanjoo received information that smuggling of mobile phones might be attempted at Multan airport on which he directed the customs officials deputed at airport to tighten the monitoring system. Following the instructions, customs started to examine the luggage of passengers more strictly due to which a passenger arrived at Multan airport from Dubai through a private airline Flight No. SZ-339 fled away by throwing his luggage comprising three bags at airport.
Multan excise transfers three officials he Excise and Taxation Multan Division has transferred Excise and Taxation Officer Javed Zaman Niazi to Lahore. Assistant Excise and Taxation Officer Vehari Rana Sakhwat has been promoted to Excise and Taxation Officer and now he has also been transferred to Lodhran district. He will assume the charge of Excise and Taxation officer Lodhran.
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Dar chairs meeting to review preparations for Pak- Afghan JEC Friday, August 14, 2015
Business
ISLAMABAD: The Federal Minister for Finance Mohammad Ishaq Dar presided over a meeting to review the Preparations for the Upcoming 10th Pak-Afghan Joint Economic Commission session. Additional Secretary Economic Affairs Division Mr. Omar Hamid briefed the meeting on the implementation status of the decisions taken on bilateral economic issues between Pakistan and Afghanistan in the previous JEC meeting. Omar Hamid also briefed the meeting that on behalf of the Government of Pakistan, Ministry of Commerce has undertaken certain initiatives to boost the bilateral trade between the two countries to $ 5 billion.
rs 354.8b projects: chinese firms to complete cpec eastern section ISLAMABAD
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he government has awarded contracts of the construction of two eastern alignment schemes of China-Pakistan Economic Corridor to Chinese Oirms. The decision was taken by the Economic Coordination Committee (ECC) of the Cabinet for construction of 392-kilometre MultanSukkur section of the LahoreKarachi motorway and the 120km
projects and Rs20.5 billion from the current Oiscal year’s budget have been allocated for this purpose. For the Rs259.4 billion MultanSukkur section of Lahore-Karachi Motorway, Beijing forwarded the names of China Construction Company, China Civil Engineering Construction Corporation and Syno Hydro Company, said the ofOicials. Rs50 billion have been earmarked for this project in the current Oiscal year. Meanwhile, The Competition Commission of Pakistan (CCP) has imposed a fine of Rs1.25 million on Reckitt Benckiser Pakistan Limited for misleading the consumers through a deceptive tele-
vision commercial. The company has been accused of running a TV commercial of household cleaning product Dettol Surface Cleaner that was misleading the consumers and harming the business interests of Reckitt’s competitors in violation of Section 10 of the Competition Act, 2010. A CCP bench, comprising Vadiyya Khalil Chairperson, Mueen Batlay Member Mergers & Acquisitions, and Dr Shahzad Ansar Member OFT & Advocacy, and Ikramul Haque Qureshi, Member Cartels & Trade Abuses and Legal, passed the order against the company.
Manufacturing sector’s exports decline by 17% in July
islamabad, Beijing sign 20 MoUs worth $2b at cpec moot KARAMAY
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LAHORE
ederal Minister for Planning, Development and Reforms Ahsan Iqbal has said that Pakistan and China have signed 20 memoranda of understanding (MoU) worth $2 billion in different sectors. The MoUs were signed at a two-day moot of the China Pakistan Economic Corridor (CPEC) Karamay-Xinjiang Forum at the Karamay Government Municipal Auditorium.
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long Thakot-Havelian section of Karakoram Highyway-II (KKH-II). According to an ofOicial handout, the ECC has cleared that the mechanism for such projects was already covered under article-II of the framework agreement signed by Pakistan and China in April. For implementation of the Rs95.4 billion KKH-II Thakot- Havelian section, China has forwarded the names of China Construction Company, China State Construction Engineering Company and China Civil Engineering Construction Corporation, according to National Highway Authority (NHA) ofOicials. The NHA has been mandated to execute these
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he manufacturing sector recorded 17 per cent decline in exports in the Oirst month of newly-started Oiscal year 201516, which is an alarming situation for the country’s economy. This was revealed in a fact report issued by the Institute for Policy Reforms (IPR). According to the report,
the textile industry is up in revolt after the imposition of taxes and surcharges on electricity and gas. “The rupee remains signiOicantly overvalued and this has impaired the competitiveness of our exports. Similarly, after a long time, remittances are beginning to Olatten out, with less than 1% growth in July,” it said. The report also states that amid perceptions of economic stabilisation and recovery, the National Economic Council (NEC), chaired by the prime minister, has set a number of ambitious targets in the Annual Plan for 2015-16. Realisation of
these targets would unambiguously conOirm that the economy has Oinally broken out of the low growth trap. The GDP growth rate for 2015-16 has been set at 5%. The last time a growth rate of above 5% was achieved was as far back as 2006-07. According to the Annual Plan, the industry is expected to lead the growth process, with a growth rate approaching 6.5%. InOlation is likely to average 6% over the year. The level of investment is also projected to revive sharply, from about 15% to almost 18% of the GDP.
reAp demands formation of export Board for enhancing export activities KARACHI
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he Rice Exporters Association of Pakistan (REAP) has demanded the formation of Export Board in order to enhance the exports of the country. The demand of made by the President REAP Suleman Rafiq during an annual meeting of the association. The President REAP demanded of the federal minister for Finance Ishaq Dar and Chairman Trade and Development Authority of Pakistan (TDAP) S M Muneer to take effective measures in order to boost the exporters of the country, particularly the export of rice. He said that the rice is one of the main export commodities of the country, but its export is being declined gradually by every passing month. He further said that the export of rice has been declined by 17per cent in the current year till July-2015 as compared to the previous year; adding that the export of rice would be declined further if the government will not take appropriate steps in this regard. President REAP further urged the finance ministry and federal board of revenue to resolve the issues of rebate claim.
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ECC approves exemption of 5% sales tax on wheat bran ISLAMABAD
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he Federal Minister for Finance, Senator Mohammad Ishaq Dar chaired the meeting of Economic Coordination Committee of the Cabinet (ECC) and
approved the exemption of Oive percent sales tax on wheat bran. The Chairman Federal Board of Revenue informed the chair that Olour, the main product of the Olour industry was exempt from sales tax and imposing a tax on its by product, bran was creating an anomaly which had to be removed. Accordingly, the ECC allowed the exemption of sales tax on bran.
ECC at the outset considered and approved the proposal moved by the Ministry of National Food Security and Research for extension in the period for export of surplus wheat from Punjab and Sindh provinces till September 30, 2015. In an earlier decision on January 20, 2015, ECC had allowed the export of 8,00,000 metric tonnes of wheat by the government of Punjab at the
transport rebate of $55 per M/ton and 400,000 M/T of wheat by the Government of Sindh at the transport rebate of $45 per M/ton. Later on February 9, the ECC also allowed export of wheat Olour (aata) with speciOic time lines. However, in view of further requests from Pakistan Flour Mills Association, the date for export of wheat and wheat Olour has been extended till 30th September
2015. ECC considered proposal by the Ministry of Communication for grant of EPC (Engineering design, procurement and construction) contracts to the Oirms recommended by the Government of China through competitive bidding for the KKH Phase-II and Karachi-Lahore Motorway projects being undertaken by NHA. The ECC expressed its concurrence, noting that the mechanism for such
projects was already covered under article-II of the Framework Agreement signed by Pakistan and China in April with the approval of the competent authority. The Economic Coordination Committee of the Cabinet also granted approval for the issuance of Sovereign Guarantee by the Ministry of Finance in respect of syndicated term Oinance facility amounting to Rs 7.487 billion.
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enior Member Inland Revenue Policy Federal Board of Revenue, Shahid Hussain Asad, has doubled the strength of the tax facilitation officers in Mandi Bahauudin, Mianwali, Bhakar and Khushab following the suggestion of chief com-
missioners concerned. As per details, Chief Commissioner Regional Tax Office (RTO) Sargodha, Shahid Zaman, through a letter, asked Shahid Hussain that the real estate business was growing in the said regions and the department could collect sufficient revenue from this sector with little efforts. However, he said that owing to the shortage of staff, the RTO was unable to collect taxes according to the potential of this sector. He added that
Friday, August 14, 2015
the number of the TFCOs should be doubled in the respective regions. Following the suggestions of the chief commissioner Sargodha, Member Shahid has directed the chief commissioner RTO Lahore to depute the officers in Mandi Bahauudin, Mianwali, Bhakar, Khushab and another area from Lahore officer to overcome the shortage of staff. Meanwhile, Federal Board of Revenue (FBR) Senior Member Inland Revenue (Policy) and spokesman Shahid Hussain Asad has advised traders not to worry about withholding tax as the main objective of this tax is to bring non-Oilers into the tax net. Talking to Customs Today, he said that the ofOicials are ready to extend every support and facility to non-Oilers who wants to become Oilers. He said withholding tax on banking transactions is quite adjustable as they are not bound to pay it from their own pockets. He said traders should become patriot as Pakistan gives them a lot now its time that they should contribute something for Pakistan. He said main objective of FBR is to strengthen Pakistani economy, he further clariOies that if traders will submit their actual turnover that FBR will not take any action against their declared revenue, on the other hand we will protect their revenue and income. Shahid Hussain Asad said that we are trying our best to resolve the matter of withholding tax amicably and on priority basis. Meanwhile, The Federal Board of Revenue (FBR) has denied any planning to
freeze bank accounts of non-Oilers in order to deduct taxes. Shahid Hussain Asad, Senior Member Inland Revenue-Policy and OfOicial Spokesman of the FBR, said that there was no such a policy in pipeline to freeze bank accounts of non-Oilers as All Pakistan Truck Trailer Motor Owners Association president Lala Yasir Naseer and Goods Transport leader Nabeel Tariq claimed in a press conference here on Monday. He said that 0.3 percent tax on bank transactions was only an advance tax on non-Oilers and non-Oilers could become “Oiler� at any time by submitting their income tax returns. It may be mentioned that the federal government had decided to reduce the withholding tax on more than Rs 50,000 bank transactions a day for non-Oilers from 0.6 percent to 0.3 percent for three months following the countrywide protests by the business community, subject to Oiling of returns by traders during the same period. Meanwhile, he Federal Board of Revenue (FBR) is planning to introduce electronic monitoring system to evaluate the production of different sectors in order to collect accurate taxes from them. As per details, a meeting was arranged under the supervision of FBR Chairman Tariq Bajwa to make consideration over the electronic monitoring system, while four sectors including sugar, cement, beverages and papers and board were selected at initial stage to keep an eye on their production.
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great expectations akistan is expecting the International Monetary Fund (IMF) to approve a $502 million loan in mid-September after it ensured the donor agency that it is ready to adopt a set of policy measures to meet the conditionalities. After attending the IMF meetings in Dubai, Finance Minister Ishaq Dar held a series of meetings in Islamabad to discuss various pressing issues, including the autonomy of the State Bank, expansion of tax net and privatisation of the government-owned organizations to pave the way for meeting the targets set by the IMF for the approval and release of the next tranche. The government has already convened biddings for the privatisation of National Power Construction Company to meet one of the prior actions. Dar has also approved a reference price for the sale of the company, leading to some more divestments in the near future. A meeting of the National Assembly Standing Committee on Finance was convened to meet the financial targets in line with a conditionality of the IMF program. Rampant corruption in the power sector is one of the main causes of the energy crisis in the country. A delay in removing numerous deficiencies is hindering the flow of funds from the World Bank, Asian Development Bank and other lending agencies for the improvement of this sector. Unfortunately, the frail economy looks towards Washington to help obtain even the IMF loans. The people of Pakistan are destined to live in dark on the financial and economic issues as the IMF is not in a hurry to let them know the situation in the background. The NA standing committee has approved the proposed State Bank of Pakistan (Amendment) Bill 2015 for the establishment of a committee to take decisions on the monetary policy. Amendments to SBP Act of 1956 will clip the powers of the executive board of the State Bank, allowing the Monetary Policy Committee to determine policy rate. The people of Pakistan need a blow of fresh air which is missing in every government action. People do not want amendments, but reforms in economic and financial discipline whereas the government is following hackneyed path of commissions and omissions. The country has the potential to enhance exports of indigenous products, but it has failed to find new markets. There is a need to benefit from the growing cottage industry and concentrate on the exports of local-made products rather than yearning for the production and exports of high tech equipment.
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Oscillating between hopes and despairs T
LAHORE
Dr AFtAB AFZAL
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he IMF has projected 4.5 percent growth in the Pakistani economy during the current Oiscal year, thanks to macroeconomic stability, improvement in electricity supply and fall in the petroleum prices in the international market. According to Harald Finger, an ofOicial of the International Monetary Fund (IMF), the economy of Pakistan is improving and inOlation has been dropped to 1.8 percent in July. Pakistan is seeks IMF waiver on two counts – the government missed the target of Oiscal deOicit by 0.4 percent against the budgetary target of 4.9 percent during the last Oiscal year. A statement issued by the Finance Ministry says that the government achieved a Oiscal deOicit of 5.3 percent of the GDP for 201415, but was unable to achieve Rs 1,865
billion ceiling target on net budgetary borrowing from the State Bank by the end of June this year. In a press release, the IMF says that Pakistan continued to implement the economic programme. The country has missed some targets but achieved those with a signiOicant margin which were related to monetary policy. At the end of June 2015, the government missed the performance criteria on the budget deOicit and borrowing from the SBP with a small margin. Pakistan needs to enhance exports, attract local and foreign investment and create jobs to curtail unemployment. Structural changes in the system and reforms should be the priority areas, but the government is facing challenges in its efforts to enhance tax net. The government also needs to restructure lossmaking public enterprises through strategic partnerships with the private sector. According to the IMF, the government should advance the energy sector reforms,
Internation al Monetary Fund (IMF), the economy of Pakistan is improving and inflation has been dropped to 1.8 percent in July.
improve business environment and expand coverage of the vulnerable segment of society. A decisive action, involving the ofOicial and private partnership will help strengthen the economy as Pakistan has the potential to emerge as dynamic and progressive economy in the world. No doubt the country’s economy is improving despite all odds, but the IMF conditions are pushing the life of citizens from bad to worse. According to Finance Minister Ishaq Dar, Pakistan and the IMF have completed negotiations on the eighth review, which will lead to release of ninth tranche of over $500 million under the $6.64 billion Extended Fund Facility program. The talks between Pakistan and the donor agency concluded in Dubai a couple of days ago. Though the macroeconomic situation has been improved during the last two years, all hopes are on the construction of China Pakistan Economic Corridor (CPEC) to further boost economic activities.
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SECP joins hands with NAB in anti-corruption campaign ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has joined hands with the National Accountability Bureau (NAB) to support its ‘Say No to Corruption’ campaign.The SECP organized an awareness session for its employees about the menace of corruption and its ill effects on society and national economy here Wednesday, according to press release issued by SECP. The Chairman, SECP Zafar Hijazi also approved that the slogan “Say No To Corruption” will be printed on all certificates issued by the Commission and displayed at all the SECP’s offices and Company Registration Offices (CROs).
KCCI, Vietnamese delegates hold meetings to enhance trade activities high-level delegation from Vietnam, led by the Deputy Director General of Africa and South West Asia Department of Vietnam’s Ministry of Trade and Industry, Hoang Duc Nhuan, visited the Karachi Chamber of Commerce and Industry (KCCI) to hold business-to-business meetings with their counterparts in Karachi. Prior to the commencement of the formal meeting, an introductory session was held which was attended by Second Secretary, Head of Vietnam Trade Mission (Karachi), VU Viet Dzung, President KCCI Iftikhar Ahmed Vohra, Senior Vice President KCCI Muhammad Ibrahim Kasumbi, Chairman KCCI Sub-Committee for Diplomatic Affairs Naeem Sharif, Former Vice President KCCI Nasir Mehmood, KCCI Managing Committee members and a number of relevant businessmen and industrialists who were looking forward to explore business opportunities in Pakistan.
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tevta graduates to get rs 500m interest-free loans he Board of Technical Education & Vocational Training Authority (Tevta) decided to disburse Rs500 million to 8,000 Tevta pass-outs through Akhuwat foundation’s selfemployment scheme. According to the scheme, the Tevta pass outs will be able to get interest-free loan from 50 thousands to Rs0.1 million in selected districts during the current financial year and after successful launching of this scheme. The decision was taken in Tevta Board meeting chaired by its Chairman Irfan Qaiser Shaikh and attended by Board Members Syed Yawar Ali, Cah. Hamid Malhi, Rehmat Ullah Javed, Muhammad Ismail Khurram, Ayub Sabir Izhar, Nilopher Sikandar, Executive Director Akhuwat Dr Amjad Saqib.
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Friday August 14, 2015
Chambers
Fcci terms photo journalists backbone of news media FAISALABAD
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hoto journalists play an important role in making news more authentic, credible and effective through its visual images, said Nadeem Allahwala, acting president of the Faisalabad Chamber of Commerce and Industry (FCCI). Addressing a lunch hosted in honour of newly elected office bearers of the Faisalabad Photo Journalists Association, he said that the FCCI was lucky in the sense that it always enjoyed the active support of the media, including journalists. This cooperation and understanding between them played an instrumental role in highlighting the problems of the business community at the highest forums. “Thus their problems were also solved at a much faster pace”, he said and added that particularly the photojournalists have developed personal relations and we always treat
them as our family members. He hoped that this brotherly relationship between FCCI and media personals will continue in future. He also endorsed a proposal that due representation should be given to the photo journalists in different committees formed for the
overall progress and development of the city. He assured to take up this issue at the appropriate levels. He also assured them his fullest cooperation in resolution of their immediate problems. Responding the welcome address of Nadeem Allahwala,
LCCI urges govt to activate fire brigade station at Ferozepur Road Industrial Area
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LAHORE
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he Lahore Chamber of Commerce and Industry (LCCI) has urged the Punjab government to activate fire brigade station at Ferozepur Road Industrial Area. The demand was raised by LCCI senior vice president Mian Nauman Kabir while talking to a delegation of Ferozepur Road Industrial Association (FRIA), led by its chairman Mubasher Butt and patron-in-chief Adnan Butt, here at the Lahore Chamber of Commerce and Industry. Mian Nauman Kabir said that five fire incidents took place in Ferozepur Road Industrial area. He said that unfortunately these fire
incidents caused a huge loss which otherwise could have been averted. The LCCI senior vice president urged the Punjab government to declare Ferozepur Road Industrial Area as “Industrial Estate”. The FRIA delegation informed the LCCI Senior Vice President that Ferozepure Road Industrial area has more than 450 industrial units and trading houses catering to the needs of over one lakh people directly or indirectly but due to non-availability of fundamental facilities, the industrialists were facing multiple problems. They said that law and order situation was also not encouraging.The FRIA Chairman also sought the help of Lahore Chamber of Commerce and Industry for a Oire station in the area to avert any untoward incident in the industrial units
operational in the area. Meanwhile, The Lahore Chamber of Commerce and Industry (LCCI) on Thursday said that traders should introduce new products to grab more international markets, besides exploring the untapped regions to increase the exports. While talking to the representatives of export-oriented industries, LCCI President Ijaz A. Mumtaz said that at present when a number of Asian countries have crossed $100 billion mark as far as exports are concerned, Pakistan must rethink its strategy. The LCCI President said that Pakistan would have to focus its attention to the untapped regions like Africa that is destined to become an attractive place for having enormous potential.
Muhammad Tahir, President FPJA termed photo journalists as backbone of the newspaper industry. “The newspapers will become unattractive and colorless if photos are excluded from it”, he said and added that FCCI is one of the most prestigious institution of Faisalabad.
nigeria seeks strong trade links with pakistan: high commissioner igh Commissioner of Nigeria in Pakistan Dauda Danladi has stressed the need for establishing strong trade links between the businessmen of Nigeria and SialkotPakistan for further strengthening the trade ties between Pakistan and Nigeria . He said that the time was ripe for both of the countries to take advantages of the two-way trade. He stated this while discussing in details the matters of mutual interest with Sialkot exporters during an important meeting held at Sialkot Chamber of Commerce and Industry (SCCI). SCCI President Fazal Jillani and SVP Mir Alamgir Meyer were also present on this occasion.
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Swissport sells to Chinese group worth CHF2.73b Friday August 14, 2015
World Exports from Taiwan take troubling start in Q3 of 2015 aiwan exports again posted negative growth rate of -13.9% in June which recorded -3.8% in May. Consensus expected the economy’s exports to drop by 10.5% due to a significant fall in refinery and petrochemicals shipments – mainly to China. The quantum of the decline suggests that volumes have fallen as well, in addition to prices. That said, on a seasonally adjusted basis m/m, exports did manage to climb 2.5% m/m, which partly reversed the 6.7% drop in June. Barclays notes, at a disaggregate level, shipments of chemicals, mineral products and plastic plummeted 30.2% in July, steeper than the 21.4% drop in the first half of 2015 (2014 H1: -3.7%). Excluding these three categories, exports would have fallen only 6.9% in July, an improvement compared to the 12.6% drop in June (May: -2.3%; Apr: 7.6%), indicating that the drag from external demand may be lessening. An important silver lining is that electronics was much less a drag on overall exports in July than in June – a sign that activity levels may have bottomed out and that the supply chain is rebuilding ahead of new launches. Barclays argues, “Production and exports are likely to recover modestly from Q3, helped by destocking of inventory and ramping up of production ahead of new launches.
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BERN: The Zurich-based airport luggage handler Swissport has been sold to the HNA Group, owner of China’s fourth-largest airline, for CHF2.73 billion ($2.8 billion). PAI Partners, the owners of Swissport, concluded the deal with the Haikou-based group which owns the Chinese airline company Hainan airlines. The HNA Group joined the Fortune Global 500 List for the first time this month with an annual revenue of around $25.6 billion and assets worth almost $80 billion. PAI Partners had acquired Swissport in 2010 for $900 million.
Malaysian customs foils attempt to smuggle ketamine, meth SEPANG
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t Oirst glance, an unclaimed parcel containing pasta, instant noodles and dried Oish at the Kuala Lumpur International Airport cargo section was no cause for suspicion. But when the KLIA Customs Department put it through an X-ray scanner, they found that there was more than food in the box. KLIA Customs director Datuk Chik Omar Chik Lim said his ofOicers opened the unclaimed parcel, which arrived from Lagos on July 29 at about 3pm on Aug 3. “They found ketamine packed with nine packets of macaroni,” he told reporters yesterday. Chik Omar said the authorities
were now looking for the recipient of the parcel, which had 2.548kg of ketamine worth about RM95,850. In another case, three Indian nationals – a married couple and a woman – were arrested after landing at KLIA from Chennai on Saturday on suspicion of attempting to smuggle methamphetamine. The husband, 42, and his wife, 34, were arrested at 7.40am for having 10.17kg of methamphetamine worth RM1.932mil, which was found hidden underneath textiles in special compartments in their two luggage bags. He said the male suspect had entered the country 20 times since 2013 for business purposes while his wife had entered Malaysia nine times this year. “We don’t know whether he smuggled in drugs the last 20 times he entered the country – he was undetected.
“Perhaps this was his Oirst time bringing in the drugs,” he said. The other woman on the same Olight was arrested Oive minutes later after she was found with 5.115kg of methamphetamine. The drugs worth RM971,850 was
French Customs releases arms, car exports data
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Renault Clio IV car is pictured in the final check area at the Renault automobile factory in Flins, west of Paris, France, May 5, 2015. Strong foreign sales of cars and military equipment helped France
narrow its trade deOicit in June to the lowest level since mid-2009, Oigures released by the Customs OfOice showed on Friday. However separate data showed an unexpected weakening of industrial production by 0.1 percent in the same month, giving a mixed picture of the euro zone’s second largest economy ahead of a closelywatched preliminary reading of its
second-quarter gross domestic product due on Aug. 14. The June trade deOicit fell to 2.7 billion euros (1.75 billion pounds) from a shortfall of four billion the month before thanks to sales of Airbus planes, satellite systems and “a sharp pick-up” in car exports, the ofOice said in a statement. It noted also the inclusion of a “very large military contract.”
Dubai customs recover 4.6kg cocaine from woman
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woman passenger has been accused of smuggling 4.6kg of cocaine hidden in her undergarments at Dubai International Airport. A law enforcement ofOicer was said to have stopped the 42-yearold Zambian woman, O.M., as she was walking suspiciously to the transit terminal in April.
After searching her, the woman was found to be wearing beige elasticised shorts in which she hid eight plastic pouches containing cocaine. Drugs prosecutors charged O.M. with possessing and smuggling drugs via Dubai in transit. The Zambian woman pleaded guilty when she appeared before the Dubai Court of First Instance on Monday. “Yes, I got the cocaine with me,” she told presiding judge Mohammad Jamal. According to the charge sheet,
prosecutors said the defendant hid 1.4kg of cocaine in the shorts and 3.2kg of the same drug in her underwear. An anti-narcotics police sergeant testiOied to prosecutors that the woman traveller was stopped at the transit terminal shortly after her plane arrived from Brazil. “At around 9.45pm, she arrived at the airport and was walking towards the transit terminal to continue her trip to Zambia. The woman seemed to be frightened and confused. The way she was
moving, it was quite obvious that she was hiding something between her legs that was hindering her walk. I asked her to stop and accompany me to a private search room. Then I asked one of my women partners to search her. The search resulted in Oinding the a white substance that looked like cocaine hidden in the beige shorts. Upon confronting her with the Oindings, she admitted that it is a banned substance, contending that she did not know what type of drug is it.
found hidden in the same manner – underneath textiles in a special compartment in her luggage bag. Chik Omar said the 56-year-old woman had entered the country four times previously for business purposes.
Switzerland, Belize sign 9th TIEA BERN
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he agreement is Switzerland’s ninth TIEA. It provides for the exchange of information upon request. It covers Swiss federal, cantonal, and communal taxes on income and capital, and the cantonal and communal inheritance and gift taxes. In the case of Belize, it covers the income tax, business tax, and general sales tax. The agreement must now be approved by the Swiss parliament and may be subjected to a referendum before it can enter into force. The cantons and business associations have already expressed their support for the deal. In April 2012, the Swiss Federal Council decided to adopt the international standard for administrative assistance in its TIEAs and double tax agreements. Switzerland’s TIEAs with Jersey, Guernsey, and the Isle of Man have been applicable since January 1, 2015.
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Jordanian port awaits for new shipment of 150,000cm of LNG AMMAN: Jordan will receive a new shipment of liquefied natural gas (LNG) in the middle of this month, an official said Tuesday. A vessel laden with 150,000 cubic metres of LNG is scheduled to arrive in Aqaba to unload at the LNG terminal in the port city, according to Energy Ministry Spokesperson Haidar Gammaz. The shipment will be provided by Shell, he said, adding that Jordan received a shipment of 130,000 cubic metres of LNG last weekend.
Adani Ports, SEZ included in NSE’s CNX Nifty 50 index with effect from Sept
Ports & Shipping Friday August 14, 2015
companies complain about clearance delays at Doha port
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he Greek owners, who operate almost 20% of the global fleet of merchant ships, are paying rockbottom prices because assets once owned by bankrupt shipping lines are now in the hands of creditors, including German banks, who want to clear nonperforming loans from their portfolios. Greece’s shipping magnates, having emerged largely unscathed from both the country’s ravaging financial crisis and one the industry’s longest downturns, are extending their dominance by snapping up vessels from competitors who haven’t fared as well. For years, Greece and Germany have been Europe’s shipping powerhouses. But while the Greeks stuck to a hands-on approach in which the owner arranged everything from financing to chartering and operations, the so-called German KG system largely depended on scores of investors ranging from banks to the country’s wealthy middle class.
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hell has asked US federal regulators for permission to drill deeper at its site in Arctic waters. So far the drilling, which began on July 30 after months of anti-drilling protests by environmental groups, has been limited to the top 3,000 feet That is because Interior Department conditions forbid drilling operations from penetrating into oil-bearing zones until the capping stack (a key piece of emergency response equipment designed to shut-in a well in case of a blowout) is on site and deployable within 24 hours. The capping stack is on board the icebreaker Fennica, which is heading back to the Arctic after undergoing repairs to its hull. Shell believes the Fennica will arrive on site on Tuesday at the Burger J prospect in the Chukchi Sea off Alaska. Inspectors from the US Bureau of Safety and Environmental Enforcement (BSEE), a branch of Interior, are on board the Polar Pioneer semisubmersible and the Noble Discoverer drillship to make sure those regulations are followed. So far only the Polar Pioneer has been in use. Shell made its request before the Fennica’s arrival because it could take a few days for the regulators to give a decision.
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dani Ports and Special Economic Zone will be included in the NSE’s CNX Nifty 50 index with effect from September 28. However, NMDC will be excluded from the index. The National Stock Exchange has decided to remove Adani Ports along with Reliance Power and Union Bank of India from Nifty Junior Index, These stocks will be replaced by Marico , NMDC and Sundaram Finance , the exchange said. The exchange also made changes in CNX 100, CNX 200, CNX 500, LIX 15, LIX 15 Midcap, Nifty Midcap 50, CNX Midcap, CNX Smallcap, CNX Consumption, CNX Energy, CNX Finance, CNX Infrastructure, CNX Media, CNX Metal and CNX Service Sector indices with effect from same date.
greece ship owners operate 20% of global fleet of marchant ships
Shell asks US regulators for permission to drill deeper in Arctic waters
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he inspection process at Doha Port is excessively slow leading to inordinate delays in clearance, complain customs clearance companies. Inspection clearances take hours and in many cases are given the next day, a senior official of a customs clearance company told
Al Sharq. The delay also creates financial burden on the companies because they have to pay extra loading charge. In case of delay in clearance, the loading charge goes up to QR1,300 from QR600. Companies say the delay impact their clients and are under from them to get the delivery on time. According to these companies, the process of giving clearance is complicated. “We are working here for so many years but have not seen such kind of delay,” said a senior official of a clearance company.
“Some inspectors do not have proper knowledge about their work which slows down their work,” he said. Companies have also to struggle with the problem of damaged goods. Many a time goods are damaged during inspection as officials handle them carelessly, said the official. Clearance companies have demanded that authorities review the inspection process and rectify problems. Some inspectors do not have enough experience to handle the process, which is another reason for delays, the official added.
ictSi shows lower profit despite surge in revenue MANILA
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anila-based port operator International Container Terminal Services, Inc. (ICTSI) improved its throughput and revenue in the Oirst half of 2015, but its net proOit was down 1% due to one-off gains and charges from its operations in Asia and South America. ICTSI’s net proOit for 1HFY2015 was USD 100.4 million, as compared to USD 101.7 million net proOit in 1HFY2014. The port operator recorded
USD 552.1 million gross revenue in 1HFY2015, an increase of eight percent over the USD 510.3 million reported for the same period last year. ICTSI handled consolidated volume of 3,888,130 twenty-foot equivalent units (TEUs) in the Oirst six months of 2015, nine percent more than the 3,566,023 TEUs handled in the same period in 2014. The increase in volume was mainly due to the continuing volume ramp-up at Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico and Operadora Portuaria Centroamericana, S.A. de C.V. (OPC) in Puerto Cortez, Honduras; new shipping line contracts and serv-
ices at Pakistan International Container Terminal (PICT) in Karachi, Pakistan; increased demand for services at Subic Bay International Terminal Corp. (SBITC) in Subic Bay, Philippines; favorable impact of consolidation at Yantai International Container Terminal (YICT) in Yantai China; and the contribution of the company’s new terminal, ICTSI Iraq, in Basra, Iraq which began commercial operation in November 2014. This, however, was partially offset by lower storage and breakbulk revenues combined with the 29 percent depreciation of the Brazilian Reais (BRL) against the US dollar at Tecon Suape S.A
(TSSA) in Recife, Brazil; the discontinued vessel calls by two major shipping lines as a result of continuing labor disruption at ICTSI Oregon, Inc. in Portland, Oregon, USA; weaker short-sea trade and reduced vessel calls at Baltic Container Terminal (BCT) in Gdynia, Poland; and slow economic activity coupled with the 23 percent depreciation of the Euro against the US dollar at Madagascar International Container Terminal Services, Ltd. (MICTSL) in Toamasina, Madagascar. The company’s eight key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, which accounted for 77 percent.
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Excise impounds 36 vehicles during road checking MULTAN: Excise and Taxation Department Multan Division has impounded 36 defaulting vehicles throughout Multan City. Director General Excise and Taxation ,Jaam Siraaj has constituted special teams in Multan divisions for checking of vehicles under the supervision of Excise and Taxation officers. The teams consist of Excise and Taxation Officers (ETOs), Assistant Excise and Taxation Officers and Inspectors for checking. According to sources, more than 400 vehicles were checked during road checking and 36 vehicles were impounded which were found defaulters of motor vehicle tax.
Friday, August 14, 2015
CUSTOMS BULLETIN
SHC directs customs to release consignments of iron, steel after receiving duty, taxes KARACHI
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he Sindh High Court (SHC) has directed the customs authorities to release the petitioners’ consignments of iron and steel products after receiving duty and taxes by them. M/s Wasif Steel Industries, M/s Owais Oman Enterprises, M/s Sonia International, M/s Crystal Steel Corporation and Ms Junaid Brothers are among the petitioners who had challenged the imposition of regulatory duty on imports of iron and steel from China. Justice Sajjad Ali Shah, who headed the division bench, granted the petitioners’ request for release of their consignments while directing them to deposit the disputed regulatory duty with Nazir of the court. The court asked the customs authorities to release the consignments after the petitioner importers pay duty and taxes. Naming the Oinance secretary, Federal Board of Revenue’s chairman, chief collector custom as respondents the petitioners stated that Pakistan and China had entered into a Free Trade Agreement for import of steel and iron products and subsequently a notiOication.
NAB KP arrests ex-DG Arshad Khan, AD Irfanullah of FDMA over corruption
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NAB Khyber Pakhtunkhwa has arrested Arshad Khan, ex-director general of the FATA Disaster Management Authority (FDMA). He was presently posted as Additional Secretary Home and Tribal Affairs Department in Khyber Pakhtunkhwa. Irfanullah Ex-Assistant Director of FDMA has also been arrested over the corruption charges. NAB Spokesman Saadullah Khan said that the ofOicials were allegedly involved in embezzlement of funds in Housing Uniform Assistance Subsidy Project (HUASP) for Bajour Agency and looted more than Rs 300
million. As per details, under the Housing Uniform Assistance Subsidy Project the government of Pakistan with the assistance of USAID paid compensation to internally Displaced Persons (IDPs) whose houses had been damaged in the military operation against the miscreants. Under the project Rs 400,000/- were paid to each individual whose houses had been completely damaged, while Rs 160,000/- were paid to owners of the partially damaged houses. Total payment of almost Rs 2.5 billion rupees was made under the project to almost 10,000 affectees of Bajur Agency. During the course of inquiry it was revealed that the accused Arshad Khan, being
Director General (FDMA) in connivance with Assistant Director Irfan Ullah and others managed to embezzle millions of rupees in compensations payment meant for the affectees of terrorism after operation in Bajour Agency. The accused Irfan Ullah in connivance with other ofOicials prepared hundreds of counterfeit survey forms of fake/ineligible affectees and afterwards included the same in the payment lists in order to embezzle public money. While Arshad Khan illegally granted approval to all those ineligible / fake affectees of Bajour Agency and deviously misled PDMA / PaRRSA for illegal payments, thus breached the trust which the Govt has imposed upon him. In nutshell, accused Arshad Khan, Irfan
Ullah and other crony accused persons remained hand in glove with each other to fulOill their nefarious design of embezzlements of funds for illegal monetary gain. It merits mentioning here, Arshad Khan Ex-Director Director FDMA, was in judicial custody after getting arrested by NAB(KP) for embezzling Rs. 60 Million in the name of ghost affectees of Mohmand Agency major portion of which has already been recovered. NAB Khyber Pakhtunkhwa actively perusing the case and more alarming facts and names of some high proOile persons are expected to come forth in the scam. The accused persons will be produced before Accountability Court Peshawar for obtaining their physical remand.
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