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Karachi, Fri March 23, 2018

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IRFAN BAHADUR

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ational Accountability Bureau (NAB) arrested 3 Customs ofQicers and started investigation against others including DC Athar Naveed who were allegedly involved in billions of rupees scam at Peshawar Dry Port.

Customs Today obtained official NAB documents which revealed that these three customs officers including Shahid Akbar, Abdul Hadi and Hidayat Ullah in connivance with Athar Naveed, the then Deputy Collector at Peshawar Dry Port, cleared 701 illegal consignments from 2015 to 2017, causing billions of rupees

losses to the exchequer.DC Athar Naveed, being a senior officer at Peshawar Dry Port, did not perform his duties vigilantly, hence misused his authority and illegally cleared the consignments in violation of the applicable rules. Malik Aman, Mumraz Alhaaj Gul and others, being superintendents, allegedly helped clear the consignments in violation of the applicable rules.

In connivance with each other, they illegally assessed and cleared 488 consignments and caused Rs 9,180.75 million losses to the national exchequer. Muhammad Arafat at J/S Bank illegally extended the LC on 1710-2016 and Customs agents Asif Ali and Muhammad Asim did not inform the customs authorities about illegal extension in the LC.

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They in connivance with other accused persons processed and cleared 55 and 23 consignments of Jameel Ahmad Jan. According to the NAB documents received by Customs Today, an interrogation process has been started at a high level to trace corruption in clearance of old and used cars which were imported under amnesty scheme.

Customs Today has been the Qirst to disclose the fraud carried out at the Peshawar Dry Port from 2015 to 2017 where different appraisers cleared illegal consignments.

The NAB arrested the accused persons on 15-08-2017, 1909-2017 and 2-112017, hence the interim reference against all accused persons is being filed.

Customs Islamabad faces a deficit of Rs52.62m of Customs Duty

Final notice causes Adjudication-II recovery of Rs6.80m from Kamran

FTO seeks final arguments to conclude tax refund case

Valuation Ruling No: 909/2016 due to be revised by Surriya Butt on May 2

Huge quantityof importedcloths dumped in secret godown confiscated by ASU

MCC Islamabad showed a shortfall of Rs52.62magainstanassignedproportional | See pAge 02 |

Customs Adjudication-II received Rs6.80million in response to a final notice | See pAge 03 |

FTO sought final arguments from parties in an appeal filed byTwo Star Engineering | See pAge 04 |

DGValuation has said that we are receiving more than 10 applications from importers | See pAge 09 |

ASU Peshawar has raided a Godown situated at the Kharkhano Market | See pAge 16 |

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ATIR adjourns hearing on tax involving FBR and Klaguardia Logistics Friday, March 23, 2018

ISLAMABAD: The Appellate Tribunal Inland Revenue (ATIR) dated in office the hearing on a tax matter after the submission of record by parties during the second week of March.

Accountant Member Dr Ghulam Mujtaba Bhatti was hearing the case involving Federal Board of Revenue and M/s Klaguardia Logistics.

M/s Klaguardia Logistics had challenged the due recovery of income tax received by the LTU Islamabad.

Islamabad

customs Islamabad faces a deficit of Rs52.62 million of customs Duty

ISLAMABAD

ISLAMABAD

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ederal Board of Revenue (FBR) is facing Rs55 billion shortfall in revenue collection target of Rs4,013 billion set for the current fiscal year. According to estimates of relevant authorities and International Monetary Fund (IMF), the revenue collection would reach Rs3,958 billion by June 30, 2018.

The estimates for collection of tax components are included, Rs1,582 billion direct taxes, Rs234 billion federal excise duty, Rs1563 billion sales tax and Rs579 billion customs duty. With this estimate the tax to GDP ratio of FBR collection will reach to 11.2 percent in 201718 as against last year’s 10.5 percent. The FBR collected Rs3,361 billion during the last fiscal year.

The revenue body collected Rs2,259 billion during first eight months of the current financial year as against Rs1920 billion collected during the same period of the previous fiscal year, excluding collection on account of book adjustments. FBR has recorded an increase of around 17.65 percent over the revenue collected during the corresponding period of last fiscal year.

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he Model Customs Collectorate (MCC) Islamabad showed a shortfall of Rs52.62million against an assigned proportional revenue collection target of Customs Duty (CD) for the Qirst half of March FY17-18.

According to details explained by the sources of Model Customs Collectorate (MCC) Islamabad that, during above said period, the MCC Islamabad generated Rs234.16million as Customs Duty (CD) against an allocated proportional (March 1st to 15th) revenue collection target in amount of Rs286.78million.

The sources told CT that MCC Islamabad received -18% of deQicit of revenue collection under the head of CD against an earmarked revenue collection target. It was added that the MCC Islamabad received Rs234.28million of CD during the same corresponding period.

The sources notiQied the correspondent that MCC Islamabad has allocated Rs592.67million for the entire month of March FY17-18. It was said that the collectorate has to earn Rs358.51million during the coming 15 days of March FY17-18.

It was informed that even as collectorate faced a shortfall during Qirst 15 days of current half month while it showed outstanding performance during Qirst eight months

‘FBR to collect Rs3,958 billion revenue

by June 30’

(July to February) FY17-18. The collectorate posted 45% increase under the head of Customs Duty (CD) during said period against the same previous period. The collectorate proved 28% growth against an assigned revenue collection target for the Qirst eight months of current FY17-18 under the same head.

Meanwhile, Te Islamabad Dry Port (IDP) showed Rs31million’s shortfall against an assigned proportional revenue collection target for Qirst 10 days of March FY17-18

under the head of Customs Duty.

OfQicial sources of the Model Customs Collectorate Islamabad told Customs Today that, during Qirst 10 days of March FY17-18, the Islamabad Dry Port (IDP) received Rs72.88million as Customs Duty (CD) while it was allocated a proportional revenue collection target of Rs104.31million. Due to adoption of new policies forwarded by Chief Collector North, the performance of IDP went downwards. It was disclosed that the business community

is shifting its businesses from the IDP to other dry ports. It is worth mentioning here that, during Qirst 10 days of March FY17-18, the IDP showed -30% deQicit against an earmarked proportional revenue collection target of CD. The IDP demonstrated -23% shorfall against an assigned proportional revenue target for the same corresponding period. It was informed that the IDP fetched Rs94.09million revenue under the head of CD during 1st to March 10th FY16-17.

political parties not yet registered with FBR N

ISLAMABAD

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ot a single major political party of the country is registered with the Federal Board of Revenue (FBR). The FBR has started scrutinizing tax matters of political parties throughout the country. The political parties which are not registered with the FBR include Pakistan Muslim LeagueNawaz (PML-N), Pakistan People’s

party (PPP), Awami Muslim League (AML), Mutahida Qaumi Movement (MQM), Pakistan Tehreek-e-Insaaf (PTI), Pakistan Muslim LeagueQuaid e Azam (PML-Q), Awami National Party (ANP), Jamaat-e-Islam (JI), Jamiat Ulema-e Islam-Fazal-urRehman (JUI-F), Majlis Wahdat-eMuslimeen (MWM), Pakistan People’s Party-Parliamentarians (PPP-P) and Tehreek-e-Labaik Pakistan (TLP). The FBR has sent this list to regional ofQices for further action. The FBR has instructed all

the Large Taxpayer Units (LTUs) and Regional Taxpayer Units (RTUs) to issue notices to the heads of the parties to ensure income tax return Qiling. An FBR ofQicial said that if the parties failed to register the LTUs and RTUs concerned, the FBR will ask the Election Commission of Pakistan to act. The ofQicial said the political parties are not exempted from income tax. So these parties have to declare their income, source of income and pay the due taxes.

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SHC issues notice to Port Qasim Collector in vacuum cleaner import case KARACHI: The Sindh High Court has issued notices to the Port Muhammad Bin Qasim Collector and other respondents in a petition filed by Hawk International.

The appellate bench, comprising Justice Munib Akhtar and Justice Mrs Ashraf Jahan, heard a lawyer from Franklin Law Associates representing the petitioner who challenged the demand raised by the department after a lapse of five years.

The petitioner imported vacuum cleaners and pots etc from China. The goods were assessed and released in year 2012 but now the department has come up with a demand of Rs1.6 million.

tax evasion of Rs9.22m committed

by Basmati Rice karachi unearthed

Friday March 23, 2018

Karachi

Final notice causes Adjudication-II recovery of Rs6.80m from kamran

KARACHI

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he Directorate of Customs Post Clearance Audit has detected duty and tax evasion of Rs9.22million committed by M/s Super Basmati Rice Karachi, it is learnt here. Sources told Customs Today that M/s Super Basmati Rice Karachi imported a consignment of various kinds of rice (Includeing Karnal Special Quality) and got it cleared from the Port Qasim Karachi vide GDs on December 22, 2017 by paying customs duty very low at eight percent after claiming the benefit of SRO 562/2007. However the subject items were correctly classifiable under the PCT 2478.2506 attracting customs duty at 12 percent and income tax at 10 percent.

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pSX adds massive 770pts despite rupee devaluation KARACHI

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he Pakistan Stock Exchange’s benchmark KSE-100 Index gained massive 770 points and closed at 44,310 amid rupee devaluation. By day’s close, the benchmark index was up 1.77 per cent as investors priced in the impact of a worsening exchange rate on the country’s balance of payments situation.

“Consequently, investors jumped into dollar-hedged sectors in expectations of better returns in coming sessions,”commented Topline Securities. “E&Ps, textile and IPPs contributed 217 points to the index. Similarly, banks emerged as the top performer in the market and added 413 points to the index in anticipation of a rise in the policy rate.”“Initially, interest was seen in the financial sector on expectations of an increase in the policy rate on the back of higher inflation amidst currency depreciation,” reported JS Research.

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he Customs Adjudication-II received Rs6.80million in response to a Qinal notice served on a defaulter company named M/s Kamran Traders. The adjudication has also issued a show cause notice to M/s Bali Sanitary and Export Karachi.

M/s Kamran Traders was allegedly involved in a tax evasion.

The company imported marble polish machines’ parts on 2nd of December 2017 which was examined

by Niaz Ahmed Khan who used the wrong PCT heading. After a careful investigation, the Customs Adjudication-II issued a Qinal notice to the company on February 20. The company cleared the amount of Rs6.80million on Thursday.

Source said that another company named M/s Bali Sanitary and Export got cleared a consignment of sanitary items on November 12, 2017 and evaded a tax amount of Rs5.86million. After the investigation, the Customs Adjudication-II served a show cause notice on the company on March 15, 2018 and mentioned it that the amount has to be cleared within 14 days.

Meanwhile, The Customs Adjudication-I showed an excellent performance in the month of February and Qirst 13 days of current month.

The adjudication has issued seven show cause and Qive Qinal notices to

defaulter companies in the month of February and three Qinal notices in the current month.

Sources told Customs Today on Tuesday that the Customs Adjudication-I has retrieved Rs4.66million from M/s Reliable Electronics Thatta. The company was allegedly involved in the tax evasion.

Sources told reporter that Collector Customs Adjudication-I has served a show-cause notice on said company for allegedly caus-

After the investigation, the customs Adjudication-II served a show cause notice on the company on march, 2018 and mentioned it that the amount has to be cleared within 14 days.

customs confiscates 60 NDp split air-conditioners

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KARACHI

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he Customs Collectorate Gwadar has impounded contraband split air-conditioners and their parts worth Rs05million.

Sources told CT that Deputy Collector Gwadar constituted a team of the Customs Anti-Smuggling Organization (ASO) under the supervision of Customs Pre-

ventive Inspector Waseem Ahmed and others. The team, during a search operation in Jewani area, intercepted a truck bearing registration QLJ-5732 which was going out of the city.

During the checking, the customs team seized 60 pieces of US made non-duty-paid air-conditioners and their parts valued at Rs05million. The customs team arrested three smugglers involved in the smuggling and registered an FIR against the accused and

started investigations.

Sources told CT that Deputy Collector Gwadar said that operation against smuggling will be continued. We appreciate our team who continued struggle to frustrate the trafQicking of smuggling.

It is necessary to mention here that operation against smuggling and smuggled items and non-dutypaid luxury vehicles is going on in full swing and several raids have been conducted during the last three months.

ing the treasury a loss of Rs4.66million by way of mis-declaration of classification.

M/s Reliable Electronics Thatta imported a consignment of various types of imported charging fans which were got cleared by mis-declaring the classification under the Pakistan Custom Tariff (PCT) from the Pakistan International Container Terminal (PICT) through Examiner Rana Shakeel on December 17, 12017.

ktBA elects office-bearers he Karachi Tax Bar Association (KTBA) has elected Khalid Mahmood as president for the term 2018-19 in its 61st annual general meeting. Khalid Mahmood is a Chartered Accountant by profession and is a partner in the firm KPMG Pakistan. Khalid has been associated with Bar since 2007 and has served the Bar as its Vice President and Joint Secretary in the past.

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Customs, IR officers issued guidelines for protection against cyber activities Friday March 23, 2018

Lahore

LAHORE: The Pakistan Revenue Automation Private Limited (PRAL) has issued an advisory to the Federal Board of Revenue (FBR) and Customs officers to take precautionary measures against URLs at Whatsapp, groups, passwords stealing apps on Google play store and malicious cyber activities from North Koreans.

Sharing precautionary measures with the officers, the PRAL said that the FBR’s IT security policy must be followed and a copy be obtained from IT wing of the board. The PRAL warned the officers not to download attachments from emails and messengers unless sure about the source.

customs Appellate tribunal upheld oNo in seized $44, 400 case LAHORE

SAJID NAwAZ

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ustoms Appellate Tribunal has upheld the Order-inOriginal (ONO) in seized $44, 400 case. The appeal was Qiled by the Imteaz Ahmed, a resident of HaQizabad against Collector of Customs Lahore. Muhammad Shabbir Gujjar, Member Judicial, heard the appeal and examined the record and also passed the judgment with remarks that there is no need to intervention in the impugned order same is upheld and appeal is dismissed.

According to the details, on duty staff of customs (TrafQic) at Allama Iqbal International Airport was seized $US 44, 400 from a passenger Imtiaz Ahmed, a resident of Pendi Bhattian, district HaQizabad, the

FIA arrests woman deported from Italy at Lahore airport IA immigration authorities at Lahore airport arrested a woman deported from Italy trying to enter Europe on fake travel documents. An FIA officer said that during immigration process of flight No.EY-241 a female deportee Waheeda Kausar was handed over to FIA by Etihad Airline staff along with check sheet. The accused passenger was deported from Italy due to fake Schengen visa sticker. During preliminary interrogation, she disclosed that she intended to go to Germany as her son Hafiz Qasid Ahmed resides there. In this regard, her other son Hafiz Ather Mahmood contacted an agent Malik Shani in Lahore and deal was done in Rs2 million. Plan was that initially he will send her to Dubai on a visit visa and from Dubai he will get a Schengen visa for Germany. –CB Report

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same passenger was going to Dubai.

After the investigation recovered foreign currency with trolley bag was seized under section 157 of Customs Act 1969. After the show cause notice, adjudication proceeding were culminated and Order in Original was passed with remarks that that US$ 44, 400 seized outrightly and also warned the appellant to be careful next time.

Being aggrieved from the order, appellant challenged the impugned order and filed the appeal before the Customs Appellate Tribunal on the grounds that due to his serious illness the passenger was taken the amount for treatment. Adding more the staff of ASF took the appellant to the Customs Counter because ASF cannot exercise any authority under the customs act 1969. He prayed before the court that said order is liable to set aside.

Fto seeks final arguments to conclude tax refund case LAHORE

SAJID NAwAZ

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he Federal Tax Ombudsman (FTO) sought Qinal arguments from parties in an appeal Qiled by M/s Two Star Engineering Service against the Corporate Regional Tax OfQice (CRTO) until the next date of hearing. FTO Consultant Mian Munawar Ghafoor heard the case in which counsel for the appellant argued that the Corporate Regional Tax OfQice (CRTO) has failed to release the tax refunds since two years which was claimed by the company.

He said that the RTO has been collecting excessive taxes for the past two years. He approached the commissioner concerned many times for release of refunds but the CRTO officials failed to entertain the request even after a lapse of a

customs, wwF ink accord to curb smuggling of birds & animals

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akistan Customs signed a Memorandum of Under (MoU) with Worldwide Life Fund Foundation (WWF) to curb smuggling of valuable animals and birds.

The signing ceremony was held in Ali Institute of Education near Gulab Devi Hospital Ferzepur Road.

Addressing the gathering Director Worldwife Fund Hammad Naqi said that the main purpose to ink accord is to preserve the valuable animals and birds for our future generations. He also stressed upon

the need to adopt a comprehensive strategy to curb smuggling. He said that a campaign should be started to aware public for importance of animals and birds. Hammad Naqi said that Worldwife Fund is also planning to hold a training workshop to curb smuggling of birds and animals. Chief International Customs Syed Asad Raza Rizvi has said that Pakistan Customs will extend support to Worldwife Fund to curb smuggling of birds and animals. –CB Report

reasonable time. At the end, the company decided to approach the FTO, seeking intervention in the case. The counsel appealed the FTO advisor to direct the CRTO to clear the refund claims. The counsel further said that CRTO should refund the excess collection in wake of

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ogRA issued 21 gas regulation licences il and Gas Regulatory Authority (OGRA) has so far issued around 21 licenses to different companies pertaining to regulated gas sector since 2002.

The permits are meant for transmission and sale of gas to various entities in different parts of the country, the OGRA said in its annual report for the year 2016-17. The authority granted diverse licenses to different companies including Sui Northern Gas Pipelines Limited, Sui Southern Gas Company Limited, Mari Petroleum Company Limited, Pakistan Petroleum Limited, Oil and Gas Devel-

equities rally on surprise rupee devaluation

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LAHORE

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he Pakistan Stock Exchange Tuesday rose sharply in the backdrop of surprise rupee depreciation against US dollar. The benchmark 100-share index gained 770.14 points to close at 44,309.74 points. To recall, the government

had devalued Pak Rupee by around 5 percent on Dec 8, 2017. During the last 10 years, Pak Rupee has devalued annually by 5 percent.

Though this devaluation came with a surprise, it should provide some respite to ailing balance of payments situation. Consequently, investors jumped into dollar hedged sectors in expectations of better returns in coming sessions; E&Ps, tex-

taxes by the end of financial year but the situation is quite otherwise.

Delay in issuance of refunds put burden on the taxpayers, he said, adding that the CRTO Lahore should make audit of the cases and release the extra amount collected by it from the taxpayer.

tiles and IPPs contributed 217 points to index. Similarly, banks emerged as top performer in market and added 413 points to index in anticipation of rise in policy rate.

Due to the rumours of hike in cement prices, most of the scrips in cement sector closed in green and contributed 57 points to index.

Market participation recovered 90 percent in terms of volumes, while,

opment Company Limited, Fauji Fertilizer Company Limited, Engro Chemicals Pakistan Limited, Central Power Generation Company Limited, Fatima Fertilizer Company Limited, Foundation Power Company Limited, Star Power Company Limited, Star Power Generation Limited, Engro Fertilizer Limited, ETPL, Universal Gas Distribution Company, Gaseous Distribution Company and Fauji Oil Terminal and Distribution Company. Giving the regulatory regime overview, the report said, the regulatory functions of natural gas sector were transferred to the OGRA on March 28. –CB Report

traded value was up by 110 percent. Top Qive stocks including UBL (+4.7 percent), HBL (+3 percent), MCB (+4.5 percent), PPL (+3.6 percent) & BAHL (+5 percent) added 390 points to the index gain, whereas stocks including PMPK (-5 percent), PSMC (-3.7 percent), BATA (-5 percent), HCAR (-1.6 percent) & EFERT (-0.5 percent) withheld 32 points from the index.

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evaluation of rupee against the dollar will further augment the efforts to enhance the revenue collection by the Federal Board of Revenue (FBR) because the currency depreciation will increase the tune of exports as well as imports. Moreover, authorities in FBR are of the stance that customs and regulatory duties at the import stage have been the main contributor to the revenue collection. In this regard, the provisional customs duty collection during the Qirst half of the year stood at around Rs290 billion up by 33% year-on-year.

Therefore, a source at FBR told Customs Today that currency devaluation would further augment FBR’s efforts for revenue collection just because of the fact that ratio and percentage of taxes on even daily commodities would also increase with the increase of their prices domestically.

“The main reason behind the substantial increase in customs duty collection was the levy of regulatory duty on hundreds of tariff lines to curb imports as the share of customs

duty used to be one-tenth in total revenue collection that has now almost doubled” the source maintained. “Since coming to power in 2013” the source said adding that the government implemented an ambitious economic reform program. As a result, external and internal macroeconomic balances improved markedly and the country made strides in important agendas, such as taxation, the energy sector and the business environment. Therefore, the source told that FBR performance in tax collection was up to the mark like last several years of very strong performance; however, reforms in areas that required collaboration between federal and provincial governments remain challenging.

“Reform momentum will need to continue to maintain macroeconomic stability and accelerate growth” the source said adding that provinces also had a role to play in promoting ongoing economic growth because revenue collection was an area in which the provinces could make a much greater contribution to the country’s reform effort. The source said that Punjab’s own-source tax revenues had grown significantly over recent years yet, Punjab’s revenue potential stood at Rs432 billion, compared with an actual col-

lection in FY16 of Rs108 billion. “This tax gap is driven by a mixture of tax policy and administration shortcomings. Particular challenges include: jurisdictional overlaps between different levels of government; large tax exemptions; low compliance; weaknesses in tax administration; and weak coordination among provincial administration bodies” the source maintained. The source said that tax gaps were associated with the General Sales Tax on Services and the Urban Immoveable Property Tax, which could vastly increase their collections by eliminating exemptions, increasing the range of services or properties subject to the taxes, and thro ugh more accurate data on the services sector and property valuations.

It is pertinent to note here that FBR is also struggling to improve the narrow tax base, as despite numerous extensions, the number of income tax return filers remained at 1.140 million -down from 1.216 million. Under the law, all citizens of the country are bound to file income tax returns after the close of a fiscal year. Pakistan has one of the lowest taxto-GDP ratios in the world. The FBR’s tax-toGDP ratio remained at 10.5% at the end of the last fiscal year 2016-17.

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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

economy in strain

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s the mandate of current government is closing to an end, the country still stands on the crossroad where the previous government had left it in 2013. During the period, the foreign exchange reserves were maintained on borrowed money, exports slipped to the lowest ebb and the economy not only remained in dire strain but oscillated between hope and despair. The biggest failure of the Pakistan Muslim League-Nawaz government is not the economic disaster, but mismanagement and administrative failure. The economy gradually went down, rupee devaluated and import of luxury items increased.

Despite tall claims by the officials, every state institution is drenched in corruption and occupied by incapable policymakers.

The government lost every opportunity to extricate the country out of the economic mess despite achieving Generalised Scheme of Preferences from the European Union, Chinese investment and regional stability.

The policymakers could not remove the hindrances in the way of development whether it was corruption, lack of reforms or incapacity of the leadership to accept the challenges of the new world economic order. The country is being run on ad hoc basis without serious understanding of the issues and there is a long way to go to achieve the cherished goal of prosperity. As the general elections are near, the three major political parties must induct financial managers, economy experts and technocrats in their ranks to do homework before reaching the corridors of power. The world is changing fast and the beloved politicians still live in the past and cannot see beyond their vested interests. The country has been mortgaged to foreign lending agencies and warlike industrial plans are required to rid the nation of the piling up loans. Reports suggest the volume of loans will cross the figure of $100 billion during the next financial year and debt servicing will appear as a major task. The PML-N took loans without considering the consequences and if it comes to power again, it will have to reap what it sowed during the last five years.

There should be zero tolerance for bad governance and a system is required to ensure good governance.

economic optimism and realism D LAHORE

DR AFtAB AFZAL

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r Miftah Ismail, Adviser to Prime Minister on Finance, Revenue and Economic Affairs, has claimed that the national economy is in a good shape and will grow by six percent this year, which will be the highest growth rate in 10 years.

However, in its post-programme monitoring report, the International Monetary Fund has projected the external debt of Pakistan at $103.4 billion by June 2019, up from expected level of $93.3 billion at the end of the current fiscal year. It has also warned that acquisition of further loans could increase chal-

lenges and risks to sustainability of debts. Dr Ismail based his good shape of economy rhetoric on remittances sent by the expatriate Pakistanis and foreign direct investments. The government has no role in the two as overseas Pakistanis are obliged to send money to their families in Pakistan and the size of foreign direct investment is meaningless as compared to the FDIs in other countries of the region.

It is the habit of the government officials to take the credit of a good work done by others. As a matter of fact, the country’s public debts have already crossed the limits prescribed in the revised Fiscal Responsibility and Debt Limitation Act.

The IMF report has pointed out serious complications faced by the economy as the Pakistan Muslim League-Nawaz government has failed to take concrete measures to maintain fiscal discipline but went on borrowing spree during the last four and a half years of its tenure. The government tried to accumulate foreign exchange reserves on borrowed money which it took from this and that bank on highest markup rates. The mandate of this government is ending this year and the matter of fixing the responsibility of flawed economic policies will go in abeyance. The government has mortgaged every soul of the nation to international donor agen-

cies. According to the IMF, the rising current account deficit and external debt servicing will force the government to seek higher external financing the volume of which could reach $24.5 billion by June this year and around $27 billion by the end of fiscal year 2018-19. If trend of external financing continues, the government will have to seek $45 billion after five years. It is difficult to understand the strategy of the political parties which are locked in horn with one another to grab the power. Ironically, none of the political parties have any development agenda, economic plan or at least a debt retirement programme, but who cares.

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Customs seizes smuggled hashish, electronic items, medicines, other goods KARACHI: The Directorate, Customs Intelligence and Investigation Karachi, has seized a huge quantity of contraband items including hashish, Iranian diesel, plastic Dana, and electronic items and so many more things worth Rs10.58million during 13 days of March.

Sources told Customs Today that Directorate of Customs Intelligence and Investigation foiled an attempt of smuggling non-duty-paid surgical items and international medicines worth Rs07million during a special checking on Tuesday. Sources told Director Customs Intelligence and Investigation Quetta that Muhammad Akram Chaudhary received a tip-off that some smugglers are trying to smuggle surgical items and medicines from Quetta into Hyderabad.

IDp suffers deficit of Rs30m against allocated target during 10 days ISLAMABAD

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he Islamabad Dry Port (IDP) showed Rs31million’s shortfall against an assigned proportional revenue collection target for first 10 days of March FY17-18 under the head of Customs Duty. Official sources of the Model Customs Collectorate Islamabad told Customs Today that, during first 10 days of March FY17-18, the Islamabad Dry Port (IDP) received Rs72.88million as Customs Duty (CD) while it was allocated a proportional revenue collection target of Rs104.31million. Due to adoption of new policies forwarded by Chief Collector North, the performance of IDP went downwards. It was disclosed that the business community is shifting its businesses from the IDP to other dry ports. It is worth mentioning here that, during first 10 days of March FY17-18, the IDP showed -30% deficit against an earmarked proportional revenue collec-

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Friday March 23, 2018

National

Valuation Ruling No: 909/2016 due to be revised by Surriya Butt on may 2, 2018 T

KARACHI

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he Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has said that we are receiving more than 10 applications from importers in a day for revising the previous valuation, but we can’t do every valuation without proper consideration.

She said Qirst we consider all the applications and then decide as to which valuation can be revised.

Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 909/2016 on May 2, 2018, it is learnt. Surriya Butt has said that the department is reviewing suggestions from various importers to set new prices of aluminum composite. She said that some valuations, which were issued in 2016, were being reviewed from the beginning. Moreover, the valuations will be set in view of the rising prices in the international market.

Sources told CT that a petition was submitted before the Customs Valuation in which change in prices of aluminum composite was requested.

Sources said that Valuation Ruling No: 909/2016 was issued on August 15, 2016. A meeting was held with the stakeholders on 14th of March

2018. Importers were told to furnish the import invoices of the last three months showing factual values as well as websites, names and e-mail

addresses of known foreign manufacturers of the item in question through which the actual current value could be ascertained.

Reshakai to industrial city to serve as centre of trade under cpec tion target of CD. The IDP demonstrated -23% shorfall against an assigned proportional revenue target for the same corresponding period. It was informed that the IDP fetched Rs94.09million revenue under the head of CD during 1st to March 10th FY16-17. The IDP was allocated Rs323.37million of revenue collection target as CD for the entire month of March FY17-18. The IDP has to earn Rs250.49million within the rest of 21 days of March FY17-18 to meet the earmarked target. Sources told CT that the IDP again faced a shortfall of Rs23.65million under the same head during the month of February FY 17-18 against an allocated revenue collection target.

PESHAWAR

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hief Minister Khyber Pakhtunkhwa Pervez Khattak has said that Reshakai Industrial City is the centre of the province and would fast become the centre of industrial and commercial activities in KP. He said the city would connect the North and South parts of the province and integrating the whole province to be the hub of trade and commercial activities in the backdrop of CPEC. He was presiding over a meeting to review progress of CPEC projects in the industries, energy and transport sectors at Chief Minister House here.

The CM said that Reshakai economic zone was the most suitable location connecting the whole province for economic trade and

commercial activities.

He, therefore said that work should be planned with the timelines and the progress reviewed regularly adding that the Qinancial model should be immediately prepared to be followed a feasibility report. He also talked about the extension of Hattar industrial state and the cooperation with Chinese government for Chinese machinery at Daraban DIKhan industrial city. He also directed for putting on ground other such activities made with the Malaysian investors and other investors. He said the government would strictly follow the law and would ensure that no injustice is done to anyone in the process of land acquisition adding that he had already laid down the foundation and established a workable system in the province for the land acquisition and other requirements under

the law of the land. The meeting was attended by Secretaries of Finance, Energy, Transport, Planning and Development departments and other high-up of the concerned sectors that focused on China-KP Economic Cooperation and the projects in industries, transport and energy sectors. The participants were briefed about the projects in industries that included KP Comprehensive Special Economic Zones, projects under CPEC, Reshakai and Hattar Special Economic Zones, the MoUs signed between KP Government and Chinese public sector companies which would be presented in the core committee meeting.In energy sector, there were two projects Toren More Kari HPP Chitral with the capacity of 350 megawatt of electricity with the cost of 753 million US dollars and Jameshill Toren More HPP Chitral with the capacity of 260 megawatt of

electricity costing 616 million US dollars. The provincial government had already signed MoUs with the Sino Hydro companies. The meeting also focused on some other projects both of PPP Mode and CPEC related projects in the province. Chief Minister said that he should be kept update on the outcome of the incoming core committee meeting adding that the province had agreements for investment in the 600 MW of electricity in Chitral. Other projects in energy would be made part of the CPEC as MoUs signed in this regard.

Some of the projects had been cleared by the cabinet and the rest should be brought to the cabinet for Qinal approval. Pervez Khattak directed for the futuristic strategy for laying down the transmission line from the project to the main grid with the future needs and requirements in mind.

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Appraisement East uncovers tax evasion of Rs08m in clearance of electronics Friday March 23, 2018

National NAB tightens noose around politicians, bureaucrats

KARACHI: The Foreign Exchange Rates Committee of Financial Markets Association of Pakistan issued the following Base Rate. FOREIGN CURRENCY ACCOUNTS SCHEME — RATES BAY BID MAXIMUM RATES FOR PAYMENT OF INTEREST BY ETHERIZED DEALERS R A T E S U.S. DOLLARS VALUE 19-03-18 For 3 months and over but less than 6 months 1.9275% PA 2.6775% PA % PA For 6 months and over but less than 12 Months 1.0918% PA 2.8418% PA For 12 months 2.3514% PA 3.2264% PA For 2 Years 2.3514% PA 3.7264% PA For 3 Years 2.3514% PA 3.9764% PA For 4 years 2.3514% PA 4.2264% PA For 5 years 2.3514%.

exporters to be reimbursed against rebate refunds to maintain balance of payments

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ISLAMABAD

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ational Accountability Bureau (NAB) has tightened its noose around the corrupt elements of the country by deciding to initiate investigation against MNA Jafar Laghari and Sindh Minister Manzoor Wasan.

The decision to start investigation against corrupt politicians and bureaucrats was taken in a high-level meeting which was held on Friday under the chairmanship of Justice (retd) Javed Iqbal. NAB spokesman has issues a press release saying that inquiry against two senior politicians and two senior public officers has been started with the consent of the chairman. The NAB chairman endorsed to start a complaint verification against sitting MNA Jafar Khan Laghari pertaining to encroachment of public land, measuring 2425 kanal from Chandio village falls in the jurisdiction of Dera Ghazi Khan district, worth billion of rupees by misusing his political position.

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pSX submits proposals for budget 2018-19 akistan Stock Exchange (PSX) has submitted its proposals for budget 2018-19 to Miftah Ismail, Adviser to Prime Minister on Finance and Revenue at a meeting held a day earlier. A statement issued by PSX on Monday said that the PSX delegation including some board members and senior market participants under the chairmanship of Munir Kamal on March, 2018 met the adviser regarding federal budget proposals 2018-19. At the meeting Kamal presented key issues and proposals for the growth and betterment of the capital market which would result in revenue generation and contribution to the national exchequer. –CB Report

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he exporters from different sectors will be paid rebate refunds very soon so that they can continue their business to fill the gap between imports and exports. Adviser to Prime Minister on Finance Miftah Ismail said this while addressing at a local hotel that the country’s economy is facing three main factors including the one budget deficit. He added that, during this financial year 2017-18, the budget deficit will not be allowed to be exceeded by over 5.2% as well as it will reach four and a half percents during the next Financial Year 18-19.

The 2nd setback for economy is current account deficit while third

one is import deficit. He added that the government got control over the inflation through discouraging import of luxury items

and enhancing the exports. Pakistan is an agricultural country, so we should adopt new trend. He opined that we should enhance the

capacity of per ton bales of cotton as well as we should provide good rates to formers against crops of sugarcane and wheat.

Faisalabad customs impounds several contraband vehicles in third week of march T

KARACHI

mUBeeN HUSSAIN

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he Anti-Smuggling Organization (ASO) Faisalabad has conducted various operations against smugglers on the special instructions of Deputy Collector Shah Samad Hamadani and recovered smuggling goods worth Rs3.7million during a third week of March. Sources told Customs Today that Assistant Collector Shah Samad Hamadani constituted a team to curb the smuggling. The ASO team, consisting of Ch M Sardar, Superintendent, Faizi Raza, M Nasir, Muhammad Munir and Umar Bhatti, Inspectors, and Shah Newaz, Liaquat Ali, Israr Ahmad and M Abdullah (Sepoys), impounded non-duty-paid Toyota Fielder car bearing registration No: WV-680 worth Rs800000, Toyota Land Cruiser No: BD-3470,

Model 1996, valued at Rs400000, diesel generator sets with carrier vehicle of Toyota pickup priced at Rs950000 and Suzuki Jimmni Jeep, Model 1993, worth Rs60000 and seized six bottles of liquor val-

ued at Rs950000 which were smuggled into the country without payment of custom duties and taxes. Sources said that the Faisalabad ASO took into possession items and vehicles under Section

of the Import and Export Control Act-1950 punishable under Section 156(1)89(i) 90 of the Customs Act-1969 and forwarded the cases to the Customs Adjudication Faisalabad for legal action.

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FIA arrests 36 human smugglers FAISALABAD: FIA Faisalabad arrested 36 human smugglers/agents including 14 Proclaimed Offenders and 3 female accused in a crackdown during the last week.

According to FIA spokesman, the arrested human smugglers/agents were involved in defrauding people of heavy amounts on the pretext of sending them to Dubai, Saudi Arabia, Canada, Australia, Malaysia and England, UK, etc. for overseas employment. Among the accused include Mazhar Hussain s/o Inayat Ullah (PO), Muhammad Khadim Hussain (PO), Muhammad Asif (PO), Zeeshan Sajid (PO), Gulzar Ahmed (PO), Hajji Irfan, Syed Tariq Nazir (PO), Muhammad Ashfaq (PO), Muhammad Ashraf (PO), Muhammad Wajid (PO), Malik Irfan, Muhammad Waseem, Muhammad Nadeem, Mst. Kiran Saeed, Mst.

IHc seeks record of customs case filed by m/s Lakson tobacco corp ISLAMABAD

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he Islamabad High Court (IHC) on directed parties to submit record in a customs case filed by M/s Lakson Tobacco Corporation Limited against the Federal Board of Revenue (FBR). A division bench of the IHC comprising Justice Athar Minallah and Justice Miangul Hassan Aurangzeb heard the case. During previous hearing, the bench had relisted the case for hearing along with other cases. M/s Lakson Tobacco Corporation Limited had named the additional collector customs in its petition against FBR. Meanwhile, another bench dated in office the hearing of M/s Hasas Engineering and Construction Company (Private) Limited’s case. The appellant had challenged the act of recovery of the said amount by

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commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty (FED). M/s Hasas Engineering and Construction Company Private Limited had prayed the court that FBR office had issued a recovery notice to the company which did not hold lawful grounds. The appellant had prayed the court to declare the act as illegal and without any lawful authority and an interim stay may be granted against recovery proceedings. M/s Hasas Engineering and Construction Company Private Limited had also mentioned that departmental obligations were not met amid processing the notice of recovery demand while later the adjudication did not address grievances of the appellant.

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customs tribunal orders release of vehicle to lawful owner unconditionally

truck loaded with 250 bags of plastic powder impounded by customs Quetta KARACHI

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he Directorate of Customs Intelligence and Investigation Quetta foiled a smuggling bid of a large quantity of black and white plastic Dana worth Rs05million. Sources told Customs Today that Director Customs Intelligence and Investigation Quetta Muhammad Akram Chaudhary received a tip-off that some smugglers are trying to smuggle plastic Dana from Quetta into Afghanistan. He constituted a raiding team under the supervision of Superintendent Majid Butt, Aslam Khan and others. The team enhanced the surveillance on Quetta Highway and started search of vehicles. The team intercepted a truck bearing a registration No: GK7643 which was going from Quetta to Afghanistan. During the checking, the customs team recovered 250 sacks of black and white plastic Dana priced at Rs05million. The customs team impounded all the bags and a truck used in the smuggling. Two smugglers including a driver, identified Shahid Shaikh and Mustaqeem, were apprehended.

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LAHORE

SAJID NAwAZ

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he Customs Appellate Tribunal has set aside an Order-inOriginal in an impounded Hino Ranger truck. The appeal was Qiled

by Abdul Ghani, a resident of Khyber Agency, and Maqbool Ahmed against Collector of Customs, Customs House Lahore.

Muhammad Shabbir Gujjar, Member Judicial, examined the record and heard all arguments from the appellant and the respondent sides. The tribunal passed the judgment by setting aside the impugned order and directed the respondent to release the vehicle to the appellant unconditionally.

According to the details of the case, staff of the Customs Intelligence and Investigation intercepted a foreign origin iron and steel loaded container. On demand, driver of the vehicle introduces himself as Abdul Ghani and he could not produce any document regarding the lawful import of the vehicle. The customs staff took into possession the vehicle under Section 2 (kk) of the Customs Act-1969.

After the show cause notice, ad-

Friday March 23, 2018

judication proceedings were culminated and Order-in-Original was passed with the remarks that the impounded truck be released on the payment of redemption Qine equal to 10 percent of the assessed value of the impounded vehicle. Being aggrieved from the order, appellant Qiled the appeal before the Customs Appellant Tribunal and challenged the Order-in-Original. The counsel for appellant argued before the Tri-

bunal that the ONO was passed in a mechanical fashion and without the consideration of facts about the case. On the other side, respond side produced the documents and appealed for the quashment of the case. After hearing arguments from appellant and respondent sides, Customs Appellate Tribunal decided the case by ordering the department to release the vehicle to its lawful owner unconditionally.

St NLc treatment: oil tanker owners threaten strike

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ISLAMABAD

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he oil tanker owners have threatened to go on a countrywide strike from March 22 against the preferential treatment to National Logistic Cell tankers and sales tax regime on the oil business.

“The preferential treatment to NLC, ambiguous sales tax regime by the provinces and nonpayment by the oil marketing companies are hurting the oil business. If these issues are not properly addressed, the oil tankers will halt their operation

and block the supply to all over the country from March 22,” said the Oil Tankers Contractors Association (Otca) in a letter addressed to the petroleum secretary. NLC tankers are not required to queue up for loading and unloading in all regions of Pakistan while the tankers of other contractors wait for the NLC to fill its tankers, said All Pakistan PSO Carriage Contractors Association (APPCCA) General Secretary Nauman Ali Butt, talking to media persons. “Besides not lining up for loading and unloading, the NLC is not paying the NOC fee of Rs 4 mil-

lion whereas the private oil tankers are paying Rs 4 million for the NOC/guarantee while no such guarantee money which is transferable and refundable is being charged from NLC,” he said.

It was also stated that the Pakistan State Oil (PSO) has been giving undue favour to National Logistic Cell as Otca has been asked to bring standard vehicles for oil transport whereas NLC has no vehicles that meet the required standards. The NLC tankers which have no PSO-speciQied colour are given out-of-turn loading and unloading facility, he regretted, warning they will be going on

strike and halt their operations.

“The association has been making hectic efforts for provincial sales tax (sales tax on services). On September 13, 2017, a meeting was held with government ofQicials in Islamabad, which decided that the registration will be made in each province, but the provinces have not so far devised the laws. Due to ambiguity in laws of the provinces, various companies have withheld payment of billions of rupees to the OTCA. We are in Qinancial crisis as the oil marketing companies have not been paying our billions of rupees for the last three months,” Butt asserted.

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World Customs

Swiss investor in talks to buy United Grinding

ZURICH: Swiss investor Martin Ebner is in talks to buy Swiss-German United Grinding, as other bidders have dropped out of the race for the machine tool maker, two people close to the matter said.

China Jianyin Investment (JIC), which had been keen to buy Bern-based UGG, is no longer in the running, one of them said.

Switzerland’s Oerlikon (OERL.S) has also dropped out of the auction for the maker of tools that are used to grind surfaces and small workpieces, the sources said.

Friday March 23, 2018

three fishermen arrested for smuggling illicit cigarettes

Afghan traders sign deals at Dubai food show

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wo Taiwanese men and an Indonesian migrant worker were arrested after being caught red-handed smuggling NT$2 million (US$68,450) worth of illicit cigarettes off the coast of Taitung county, eastern Taiwan.

At 8:40pm , an unidentiQied sampan was seen arriving at the mouth of the Jia Jin Lin River in the town of Dawu, and three men were observed moving boxes wrapped in black bags onshore, the Taiwan Times reported.

OfQicers from the Eastern Coastal Patrol OfQice of the Coast Guard Administration checked out the three men at the scene. The two Taiwanese men and an Indonesian migrant worker identiQied themselves as Qishermen. They were in the middle of smuggling a total of 46 boxes of illicit cigarettes, with an estimated mar-

Amazon has French grocery market in its sights S e-commerce giant Amazon aims to launch its grocery delivery service in France as part of global ambitions to expand in food retail, though the move is not imminent, its general manager for France said in a newspaper interview.Amazon’s purchase of Whole Foods in the United States last year has prompted speculation that it could next target the European food and supermarket sector.”(Food) is a strong development axis for Amazon since the launch of our Amazon Fresh offer in the US in September 2016,” Frederic Duval told the Journal du Dimanche, adding that the Whole Foods deal marked a new step in that ambition.”We would very much like to launch this service in France, but everything in its own time. A launch represents an investment,” he said. –CB Report

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ket value of NT$2 million. Meanwhile, The Ministry of Finance’s National Taxation Bureau of the Northern Area has announced that red envelopes and other gifts given at weddings, funerals and other occasions can be subject to tax, if they total an excess set thresholds, re-

ported UDN. The announcement by the tax bureau was in response to a question by a woman surnamed Chen who said that she had recently received many invitations for weddings and wanted to know if the red envelopes the gave would be subject to the “gift tax.”

Swiss vote results on public broadcasting fee and federal tax

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witzerland’s federal government must periodically seek voter approval to collect taxes.

Currently, the federal government has the right to levy these taxes until 2020. Today’s New Financial Regime 2021 vote, is aimed at extending this right until 2035. The Swiss Broadcasting Corporation, Switzerland’s public broadcaster is largely funded by a broadcasting fee.

This fee, known colloquially as Bil-

lag, the name of the agency that collects it, is paid by most companies and essentially every household. The No Billag initiative, is a bid to do away with fee. The New Financial Regime 2021 vote was accepted by 84.1% of voters, while the No Billag vote was rejected by 71.6% of voters.

A majority of voters in all cantons were in favour of the New Financial Regime 2021 initiative and against the No Billag initiative. –CB Report

fghan traders have inked US$20.5 million in signed and potential deals for high-value agricultural products due to their participation in February at the Gulfood Exhibition in Dubai.

USAID supported 25 Afghan exporters at the February 2018 Gulfood Show, where Afghanistan’s agricultural riches, including world-class pomegranates, saffron, apples, apricots, melons, grapes, nuts, and raisins were on display for international buyers. Gulfood is the world’s largest annual food and hospitality show. Now in its 23rd year, the event showcased 5,000 exhibitors from the food, drink, food services, and hospitality industries. This year’s exhibition welcomed more than 97,000 visitors in the course of the Qive-day event. USAID-supported exporters have yielded tens of millions of dollars in deals since Afghan participation began in 2010. This year, India

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punters tax could kill Betfair

he end of Betfair in Australia has been mooted as a possible outcome of the implementation of a widespread Punters’ Tax in Australia, according to one industry expert. The Punters’ Tax, or point of consumption tax, is set to be rolled out by all states in Australia in the coming two years, with South Australia already charging bookmakers a 15 per cent tax on proQit on customers in that state and Western Australia to follow suit in 2019.

The 15 per cent tax rate has been widely condemned as excessive by the industry, but the prospect of a turnover tax model in New South

Bangladesh on right track of economic success

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xperts from Bangladesh and Singapore stressed on how consistent Bangladesh’s economic growth has been and advised more on what needs to be done for further development. This was part of a joint panel discussion between

Singapore’s Institute of South Asian Studies (ISAS) and Bangladesh’s Cosmos Foundation at the Ballroom of the city’s Orchard Hotel on March 5.

“At a point in time, when Bangladesh is powering ahead across a broad spectrum in socioeconomic activities, a lot remains to be done,” he said. He also added that the panel discussion is an icebreaker on the issue of Bangladesh as an invest-

was the lead buyer of Afghan produce, with 48 percent of the US$12 million in conQirmed deals signed at the event, followed by Saudi Arabia, which came in at 17 percent. Potential deals totaled US$8.5 million. The 2,500 metric tons of produce negotiated included raisins, Qigs, pistachios, saffron, and pine nuts. ‘As a result of our participation in Gulfood, we signed the largest contract our company has ever received to export Kandahar pomegranates,’ said Mr. Mahmood, the owner of Afghan Red Pomegranate. Agriculture is backbone of Afghanistan’s economy. Up to 80 percent of Afghans are dependent on farming and livestock, and agriculture comprises 25 percent of the country’s gross domestic product. A Memorandum of Understanding (MoU) was also signed between exporters of pine nuts and Azizi Bank on the occasion. Yahya Khan Zadran, member of the Pine Nut Exporters Union (PNEU), said 33,000 tons of pine nuts were produced in the country.

ment destination. “The result of the discussion should be an excellent example what we can achieve together.” In his opening remarks, ISAS Chairman, Ambassador Gopinath Pillai, recollected memories of being part of the Singapore State Trading Corporation group which had established a garment factory in the early 1980s in Bangladesh, being one of the Qirst foreign organizations

Wales is far worse with the likely demise of betting exchange Betfair.

Betfair acts as a key lubricant to the market in Australia, giving increased liquidity and ensuring bookmakers offer fair and reasonable prices. But Richard Irvine, who has over 20 years’ experience in the bookmaking and betting industry, believes the exchange would be unable to sustain its business model in Australia if a turnover tax is introduced in Australia’s biggest state. “I think Betfair can withstand a small POC tax on profit, but the NSW Govt. have mooted a 2% on turnover POC tax. –CB Report

to do so. Drawing the anecdote of Henry Kissinger terming Bangladesh as a “bottomless basket”, he said that although such declarations affected investors, Bangladesh stood up to the occasion. He furthered that some challenges still persist, such as the population size, resource constraints, vulnerability to climate change, the Rohingya refugee crisis and others.

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Norwegian salmon exports to China rose last week OSLO: Norway exported 291 tonnes of fresh salmon to China last week, up from 192 tonnes the previous week, recovering after Chinese new year celebrations, and up from zero tonnes during the same week a year ago, data from Seafood Norway showed on Thursday. While the volumes accounted for a fraction of total exports of 15,748 tonnes last week, Norwegian producers see Chinese demand as an important factor to balance growing global salmon supply, which weigh on prices. Combined for China and Vietnam, volumes last week rose to 625 tonnes from 591 tonnes in same week last year.

Separately, volumes to Hong Kong rose to 303 tonnes last week from 201 tonnes in same week last year.

Shipping activity at port Qasim ix ships, Maersk Denver, MSC Tomoko, African Macaw, Dreggen, Agri Princes and Mocoma carrying Containers, Chemicals, Palm Kerne, Soya Bean and LNG were arranged berthing at Qasim International Container Terminal, Multi-Purpose Terminal, Engro Vopak Terminal, Grain & Fertilizer Terminal and Engro Elengy Terminal respectively. Meanwhile two more bulk cargo carrier, Baltic Panther and TVS Beach Wood also arrived at outer anchorage of Port Qasim during last 24 hours. A total of eight ships namely, Maersk Denver, MSC Tomoko, African Macaw, Agri Princes, Christina-L Thor Maximum, Macoma and Dreggen are currently occupying PQA berths to load/offload container, Steel Coil, Soya been seeds, Coal, Phosphoric Acid, LNG and Palm Kernel during last 24 hours. Cargo handling remained at 131,417 tonnes, com-

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Ports & Shipping

chennai truckers withdraw ‘indefinite’ strike threat CHENNAI

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he Chennai Trailer Owners Association had issued a strike notice to press for transportation rate increases, a 15day payment settlement system, and more effective measures to streamline trafQic. Meanwhile, Efforts to green the European shipping industry have received a boost this week, with two major banks pledging to fund €300 million worth of clean tech investments in ships over the next three years. The Dutch bank ING and the European Investment Bank (EIB) will each contribute €150 million to retroQit existing vessels so that they cause less emissions and are more fuel efQicient, and to ensure that new ships are more climate friendly.

Such steps are important to reach the goals of the Paris Climate Change Agreement, given that maritime transport is responsible for around 2.5% of global green-

house gas emissions and carbon emissions from shipping and aviation are growing at a combined rate of 3-5% annually. “I think it’s no secret that the shipping sector is a major contributor to CO2 emissions. Climate action is one of the EIB’s top priorities, and this type of financing should be seen as an incentive for ship owners to consider doing things differently.” said EIB President Werner Hoyer.

The Paris Agreement’s aim is to strengthen the global response to

the threat of climate change by keeping a global temperature rise well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius. Action in all areas of the economy is crucial to reach this goal. The investment money will be used for a range of projects with a green innovation element, including both the construction of new vessels or retrofitting of existing vessels.

Friday March 23, 2018

taiwan’s exports down in February aiwan’s exports dropped 1.2 percent year on year in February, mainly because the Lunar New Year reduced the number of working days that month, the island’s finance authority said Wednesday. The volume of exports in February stood at 22.37 billion U.S. dollars, ending a growing trend for 16 consecutive months, according to the authority.

Thanks to the global economic recovery, Taiwan’s exports in the first two months of this year reached 49.75 billion U.S. dollars, up 7.3 percent compared with the same period last year.

Exports in sectors such as basic metals, electronic components, machinery, plastic and rubber products, as well as chemical products, recorded strong growth in the first two months.

Taiwan’s imports in the first two months totaled 44.42 billion U.S. dollars, up 12.4 percent year on year. Its trade surplus reached 5.34 billion U.S. dollars in the first two months, down 1.53 billion US dollars from the same period last year. –CB Report

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BImco releases 2018 shipping market outlook prising 113,918 tonnes import cargo and 17,499 tonnes export cargo inclusive of containerized cargo carried in 3,721 containers (TEUs), (2,800 TEUs imports and 921 TEUs exports) was handled during last 24 hours. Two ships, container vessel Maersk Denver and Bulk cargo carrier Christina-L are expected to sail on Wednesday in the afternoon. Two ships, Sea Meray and Baltic Panther Scheduled to load/offload Rice and Coal are expected to take berths at MW-2 and MW-4 respectively on Wednesday. While an oil tanker ‘Totona Botiglieri’ is due to arrive at Port Qasim on same day and container vessel. –CB Report

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he world’s largest international shipping association has advised that nations should foster a strengthened global economy by undertaking structural reforms to help unleash growth potential. BIMCO referred to the International Monetary Fund’s (IMF) World Economic Outlook for January 2018, which showed it has revised its forecast for global growth in 2018 and 2019 — up by 0.2% to 3.9% for both years.

While political events can undermine the development, BIMCO has predicted that 2018 may bring fewer economic growth “derailing” events compared to 2017. It found that disturbances may come from the US

midterm elections in November, negotiations for both NAFTA and Brexit, and the stability of China’s economy. BIMCO warned

that the political deals resulting from these events need to decrease the number of trade barriers and ensure regulatory

alignment to sustain economic growth. This will help to encourage potential growth as restrictive trade measures can discourage trade flows and have negative knock-on effects on economic growth and job creation. The WTO has asked all nations to resist adopting inwardlooking policies and urged its members to show leadership by committing to open and mutually beneficial trade. According to the most recent trade monitoring report this has been embraced. In the period from midOctober 2016 to mid-October 2017, 128 measures were implemented to facilitate trade, compared to 108 trade restrictive ones. According to the WTO, world merchandise trade has rebounded strongly as volumes grew by 3.6% in 2017 compared to 1.3% in 2016.

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Local vehicles sales up by 15% Friday March 23, 2018

Business

ISLAMABAD: The sales of locally assembled vehicles and light commercial vehicles (LCVs) have witnessed 15 per cent increase in February this year as compared to same month last year.

Local auto manufacturers have sold a total of 22,654 units in February this year as compared to the 19,686 units that were sold in February last year. This increase may be attributed to strict import policy that government implemented to decrease trade deficit and imports.

‘cpec to make pakistan industrial hub of South Asia’ ISLAMABAD

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inister for Planning and Development Ahsan Iqbal has said Pakistan would become an industrial hub of South Asia after the completion of China-Pakistan Economic Corridor (CPEC) as it would play an important role in the regional economic growth through connectivity by the CPEC. Talking to media, he said the CPEC would bring mega improvement in social infrastructure, energy, industrial cooperation, agriculture and many other sectors, besides creating millions of job opportunities for the youth of the

kp NAB authorises several inquiries PESHAWAR

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country. The minister said in 2013 when the Pakistan Muslim LeagueNawaz (PML-N) came in to power, the country was facing many challenges, including terrorism, energy

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order situation. He said some 11,500 mega watt electricity was added to the national grid during the last four years. About $ 35 billion was being spent in the energy sector only and there was not even a single penny of loan included in it, rather it was investment under the CPEC, he added. Ahsan Iqbal said the CPEC project was launched after comprehensive consultation and consensus of the all political parties.

The government had also held an all parties conference on the matter. Some elements, he added, were trying to sabotage the CPEC, which was recognised as a game changer not only for Pakistan but for the entire region also. Replying to a question, he said Gilgit-Baltistan and Balochistan would become gateways of the CPEC.

ISLAMABAD

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anaging Director of Pakistan Tourism Development Corporation (PTDC), Abdul Ghafoor on Tuesday said that around 2.5 million domestic and foreign tourists expected to visit northern area Gilgit-Baltistan (GB) by the end of this year 2018. He said the arrival of tourists to the region tripled 1.78 million in 2017 including 6,212 foreign tourists, as compared to 0.5 million in 2013,earning revenue of roughly Rs300 million to the local economy. He said foreign tourists enchanted by the natural beauty, cultural and historical landmarks and hospitality of the GB people which made the area their place of choice. The recent influx, consistent with a rise in global tourism, follows the improvement in Karakorum Highway (KKH), stable peace conditions and publicity of the region through the fast-growing social and electronic media he added. He said tourism sector has witnessed a substantial boost in GB during the last five years. He said tourism sector has witnessed a substantial boost in GB during the last five years.

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Finance ministry to set up separate division for Islamic banking: miftah

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hyber Pakhtunkhwa National Accountability Bureau (NAB) has authorised several inquiries against government employees regarding corruption and corrupt practices. A press release said the decision was taken at the Regional Board Meeting (RBM) of the NAB KP, which was chaired by Farmanullah Khan, Director General NAB (KP) at Peshawar. The subjects are alleged to have embezzled millions of funds in connection with ghost schemes in different union councils of Malakand.

shortfall, and deteriorating law and order situation. The government with its effective policies, reduced terrorist acts, overcame energy shortage and improved the law and

ptDc expects 2.5m tourists to visit gB by 2018

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dvisor to the Prime Minister on Finance and Economic Affairs Dr Miftah Ismail Monday said the Ministry of Finance would soon set up a separate division for increased support to the fast growing Islamic banking. A meeting of the Committee for Implementation of the Recommendations of Steering Committee for Promotion of Islamic Banking would also be convened soon, Dr Miftah said while

speaking here at a two-day World Islamic Finance Forum (WIFE2018). The international forum has been organized by Institute of Business Administration’s Centre for Excellence in Islamic Finance (CIEF) in collaboration with key partners with the theme “Expanding the Footprint of Islamic Finance: Innovation, Fintech and Regulations”.

The advisor said the government would soon launch Rs 100 million Sukuk bonds for Islamic banking industry to strengthen its liquidity position in pursuance of its mission of fast growth of Islamic Qinancing in the

country. Highlighting the performance of PML-N government, Dr Miftah said, “We are set to achieve 6 per cent gross domestic product (GDP) growth rate, the highest rate during the last decade.” He hoped that the 6% GDP growth rate would help create a lot of job opportunities. The country had the potential to even achieve 8 to 10 per cent growth rate. It had huge coal deposits in Tharparker with estimated market value of Rs 9 trillion.

There was a big stock of copper and many other natural resources in Balochistan, which should be utilized to the optimum level, he added.

NAB asks Hec to act against former pU Vc Dr Nasir LAHORE

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he National Accountability Bureau (NAB) Lahore has forwarded a case of irregularities during the tenure of former Punjab University provisional vice chancellor Dr Zafar Moeen Nasir to the Higher Education Commission (HEC) for appropriate action.

A letter along with relevant docu-

ments has been sent to HEC Chairman Dr Mukhtar Ahmed in this regard. The letter by NAB has been sent after a complaint was lodged against the provisional vice chancellor and other senior members of the Punjab University administration by Advocate Farhat Manzoor. According to the original complaint submitted to NAB by Advocate Farhat Manzoor, Dr Zafar Moeen Nasir has been accused of involvement of Qinancial corruption to the tune of Rs 320 million as

well as other administrative irregularities. The complaint said, “Dr Zaffar Moeen Nasir, vice chancellor, University of the Punjab, is a corrupt person and making millions of rupees through unfair means, causing loss to public exchequer. Dr Nasir is involved in award of civil work contracts worth Rs 320 million and he has abused his authorities in various university matters. Dr Nasir has also used Chancellor’s powers regarding appointment of acting dean Faculty

of Health Sciences, registrar and treasurer unlawfully”. The complaint further alleges: “It is noteworthy that in the matter of awarding civil works illegally, in which tenders were not advertised, Mr Faiz ul Hasan Sipra, former acting Chief Engineer, University of the Punjab, has submitted a written statement that he was instructed by Vice Chancellor Dr Zafar Moeen Nasir to do civil works ultra vires”. The complaint adds, “Dr Zafar Moeen has also admitted this

fact in a video statement while addressing a meeting of superintendents and wardens that he ordered the civil works and the work was not up to standard”. The letter also refers to another letter sent by Punjab Higher Education Minister for the removal of Dr Zafar with similar allegations. The allegations included awarding Rs 300 million civil work contract of an HEC project to nonqualiQied individual consultant, spending over Rs 20 million.

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Renewal of FCCI membership FAISALABAD: Renewal of membership of Faisalabad Chamber of Commerce and Industry (FCCI) for next year 2018-19 will continue till March 31,2018.

According to Secretary General FCCI, all the chamber members have been reminded to get their membership renewed up to March 31. He said that Rs. 4300 would be charged as fee for renewal of membership of Corporate Class while fee for Associate Class member has been fixed at Rs 2000/-.

The chamber will also issue a special computerized identity card to its members after charging a nominal fee of Rs 200. More information in this regard can be obtained on calling 041-9230265-67,he added.

SccI seeks effective legislation to curb corruption, smuggling

Friday March 23, 2018

Chambers

JIcA experts visit IccI to discuss economic reforms with private sector

PESHAWAR

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resident Sarhad Chamber of Commerce and Industry Zahidullah Shinwari stressed effective legislation to curb corruption in the country and said that preferring national interest over personal interest would bring prosperity and development in the country.

He was addressing a ceremony organized by Sarhad Chamber of Commerce and industry in collaboration with Corporate Research and Investigation group.

Khyber Pakhtunkhwa Minister for agriculture Ikramullah Khan Gandhapur, Patron-in-Chief women Chamber of commerce and industry Miss Fitrat Ilyas Bilour, President Charsadda Chamber of Commerce Sikandar Khan, President Ab-

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bottabad Chamber Iftikhar Ahmad, members executive council Sarhad Chamber of commerce industry Haris Mufti, Akbar Sheraz, Nezhat Raof, Shabnam Muner, KP OGCL Manager Administration Major retired Aslam Khattak, Additional Collector Custom Faiz Mohammad, Director Trade Development Authority Sarir-u-din and other members of business community were present. President Sarhad Chamber of Commerce and Industry Zahidullah Shinwari said that corruption is the root cause of the country backwardness and according to report of transparency international corruption remained major issue of South Asia. He said that corruption is increasing in the whole society despite the presence of anti corruption establishment and National Accountability Bureau. He added that the country economy will be strengthened if the issue of corruption and malpractices were timely addressed.

ISLAMABAD

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delegation of experts of Japan International Cooperation Agency (JICA) working for various government organizations in Pakistan visited Islamabad Chamber of Commerce & Industry to discuss reforms in key sectors of the economy. Yuko Tanaka JICA Export for Board of Investment, Mei Saito JICA Expert for Trade Development Authority of Pakistan, Shunichi Uchida JICA Expert for Engineering Development Board and Hiroko Hayashi of Asia Engineering Consultant Co Ltd were in the delegation. The delegation members said that they were working as JICA Expert for BoI, TDAP and EDB in Pakistan and they wanted to get the input of private sector for further reforms in the key sectors of the economy. They said they were working for developing an investment guidebook for Pakistan in order to lure more local and foreign investment in the country. They said that the suggestions of business community would be given due consid-

eration for marking them part of investment guidebook. They said they wanted automation of Pakistan’s industry so that it could achieve better growth. They said the Japanese companies needed easy access to Pakistani market that would further strengthen bilateral business relations between the two countries.

Both sides discussed to organize a seminar at ICCI to highlight the potential areas of cooperation between Pakistan and Japan. The delegation assured to make

suggestions and input of business community part of their recommendations for economic reforms in Pakistan. Speaking at the occasion, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that TDAP should prepare feasibility studies on trade/exports promotion with various countries and upload on its websites so that private sector could take beneQit of them for promoting trade and exports. He said government should provide more

LccI for shift in strategy to attract FDI LAHORE

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he Lahore Chamber of Commerce & Industry Saturday expressed deep concern over shrinking Foreign Direct Investment in Pakistan by major economies during the last one decade and emphasized for a shift in the strategy.

LCCI Acting President Khawaja Khawar Rashid, Vice-President Zeshan Khalil and Executive Committee said that from the year 2008-09 to 2016-17, investment from USA, UK, UAE, Japan, Hong Kong, Switzerland and Germany dropped heavily.

Giving a breakup, they said that investment from USA has fallen from $869.9million to $71.1million. Likewise, UK’s investment came down from $263.4million to $68.9million,

UAE from $178.1million to $55.8million, Japan from $74.3million to $45.2million, Hong Kong from $156.1million to $25million, Switzerland from $227.3million to $58million during this period. They said that decline in Foreign Direct Investment has actually revealed weakness in our policies and system which must be rectiQied otherwise situation would be further aggravated. It is a matter of concern that not only foreign investors are making their ways to the other countries of this region but the local investors are losing their trust because of various issues. The LCCI ofQice-bearers said that Pakistan’s foreign missions abroad would have to play a key role in attracting foreign investors. Foreign investors should be informed that Pakistan has lucrative opportunities for investment in various sectors of economy including textile, en-

ergy, agriculture, tourism, health, education and other sectors. They said that there are 48 countries which have signed Bilateral Investment Agreements with Pakistan, but their share in total investments in Pakistan is negligible. They said that Pakistan Board of Investment has to target these countries for marketing the investment potential of Pakistan.

The LCCI ofQice-bearers said that special Economic Zone Act was promulgated in September 2012.

Among the Qiscal beneQits to foreign investors, one time exemption from custom duties and taxes for all capital goods was expected to turn around the economic activities, but it did not happen that way. Similarly, under Investment Policy 2013, there was equal treatment to local and foreign investment and the foreign equity up to 100% was allowed but these steps did not produce healthy results.

funds to Pakistani Commercial Counsellors in foreign countries so that they could cooperate with private sector in identifying new markets for Pakistani products. He said that to improve gender parity, government should offer special incentives to women entrepreneurs for their economic empowerment and bringing them in the mainstream of economy. He said TDAP should focus on promoting trade with regional countries that offered great potential for exports.

FpccI asks govt to slash St to 10pc ederation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed the government to bring sales tax rate down to seven percent from the existing 17 percent FPCCI said the standard sales tax of seven percent should be non-adjustable and non-refundable and it should be collected at the single stage of import and/or at manufacturing, except high tax earning sectors for the government, including petroleum products, energy, telecom, tobacco and liquor. In the value-added chain industry, the sales tax may be collected at 0.5 percent at each stage of value addition. “However, since a single digit sales tax rate would require a lot of time for massive amendments in the Sales Tax Act 1990 the standard sales tax rate may be reduced to 15 percent in value-added tax mode at first stage and thereafter reduced gradually by one percent. –CB Report

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Field Investigation Unit Sargodha impounds NDP Hino truck FAISALABAD: The Field Investigation Unit (FIU) Sargodha of the Customs Intelligence and Investigation has taken into possession a nonduty-paid Hino truck bearing registration No: OKS-17-389, Model 1997, valued at Rs05million involving customs duty and taxes of Rs2.9million. Sources told Customs Today that Deputy Director Rana Irfan Shouqat received a tip-off about some non-customs-paid vehicles plying on the roads.

Friday, March 23, 2018

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Huge quantity of imported cloths dumped in secret godown confiscated by ASU peshawar PESHAWAR IRFAN BAHADUR

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he Anti-Smuggling Units of the Customs House Peshawar has raided a Godown situated at the Kharkhano Market and seized six truckloads of foreign origin cloths worth millions of rupees. The customs sources informed Customs Today that raid was conducted after Collector Customs Mohammad Saeed Jadoon received secret information that some smugglers have dumped the contraband item in the said godown. Upon information passed on by Collector to Customs Deputy Collector Anti-Smuggling Unit Obaid Khan, a raiding team was constituted under the leadership of Superintendent Nasir Bukhari.

The raid was executed on the said market where a huge quantity of non-duty-paid imported cloths was hidden. The cloths were shifted after the confiscation to the Customs House Peshawar in six trucks. The collector customs has lauded the role of the Anti-Smuggling Units of the Peshawar Customs House for achieving a big target by seizing the NDP cloths.

work on two mega cpec projects enters final stage PESHAWAR

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he work on two mega CPEC projects including ThakotHavalian motorway (120km) and Suki Kinari Hydropower Project (870mw) have entered into last stage of completion in Khyber Pakthunkhwa. Ayub Gul, Research OfQicer in KP CPEC Cell told APP on Tuesday that work on Thakot-

Havelian Motorway under KKH Phase-11 has been expedited and would be completed at a cost of USD 1366 million in next two years. He said Havalian-Thakot motorway with 120km length was in early harvest project category, starting from Havelian and passing through Abbottabad, Mansehra and Shinkiari will end at Thakot Batagram with about Qive tunnels two at Abbotabad, one each at Battal, Karmong and Mansehra. On December 27, 2017 Prime Minister Shahid Khaqan Abbasi had inaugurated the 47-kilometre-long Burhan-Shah Maqsood

Interchange of the six lanes Hazara Motorway (60km), which is a key component of Thakot-Havalian (120) motorway under CPEC. The Hazara Motorway is beneQiting over 0.6 million populations of Hattar Industrial area, Haripur, Havelian, Abbottabad and northern areas through which about 28,500 vehicles will commute with substantial reduction in travel time and passengers fare. Ayub said practical work on Havalian-Thakot motorway was commenced in September 2016 after its ground breaking by the former Prime Minister Muhammad Nawaz Sharif.

He said 39 km HavalianAbbottabad Manshera section has already been completed and opened for all kinds of trafQic. The project would promote tourism, industries and business activities in the northern KP besides generating jobs opportunities for youth and will alleviate poverty in the province. Ayub said Suki Kinari Hydropower Project with total capacity of870 megawatt was another CPEC project in KP on which work was in full swing and would be completed ahead of the schedule time. He said about 70percent work on the project was

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completed and its commercial operation will formally commence in next two years. He said the project has already achieved Qinancial close and land acquisition award was announced on November 17, 2016. This mega hydel generation project was being constructed on River Kunhar Manshera and would be completed with an estimated cost of USD 1802million and that a consortium of various companies was developing it with coordination of Ministry of Water and Power and private Power and Infrastructure Board.