44
106
RAMADAN PRAYER TIMINGS IFTAR 7.02PM FAJR 3.54AM
THURSDAY, June 25, 2015 / 8 Ramadan 1436 AH
timesofoman.com
wtimesofoman.com
facebook.com/timesofoman
twitter.com/timesofoman
Dhuhr Asr Maghrib Isha Fajr (Tomorrow)
blog.timesofoman.com
12.14pm 3.32pm 7.02pm 8.25pm 3.54am
ISO 9001:2008 Certified Company
CABLES
1.80b
HM sends greetings MUSCAT: His Majesty Sultan Qaboos bin Said has sent a cable of congratulations to His Highness Sheikh Tamim bin Hamad bin Khalifa Al Thani, Emir of Qatar on the occasion of the anniversary of his assumption of the reins of power in Qatar. In his cable, His Majesty the Sultan has expressed his sincere congratulations along with his best wishes of good health, happiness and a long life to Sheikh Tamim, praying to Allah the Almighty for the return of this and similar occasions on him to achieve further aspirations of progress and prosperity for the people of Qatar. His Majesty the Sultan has also sent a cable of congratulations to President Borut Pahor of Slovenia on his country’s independence anniversary. In his cable, His Majesty the Sultan has expressed his sincere congratulations and best wishes to President Pahor and the Slovenian people. His Majesty the Sultan has sent another cable of congratulations to President Kolinda Grabar Kitarović of Croatia on the occasion of her country’s National Day. In his cable, His Majesty the Sultan has expressed his sincere congratulations and best wishes to President Kitarović and her country’s people. His Majesty the Sultan has also sent a cable of congratulations to President Filipe Nyusi of Mozambique on the occasion of his country’s Independence Anniversary. In his cable, His Majesty the Sultan has expressed his sincere congratulations and best wishes to President Nyusi and his country’s people. -ONA
Omani rial will be the estimated subsidy on petroleum products, interest on housing loan, electricity and water and essential food items in 2015
Top-level backing for cut in subsidies Central Bank of Oman says it supports the move, which could hit the price of fuel, water and power, in a ‘phased manner’
A E JAMES /FAHAD AL GHADANI
businesseditor@timesofoman.com MUSCAT: Debate over whether the Sultanate should stop subsiding the cost of petrol, electricity, water and even housing loans for nationals, has been reignited by the Central Bank of Oman (CBO) which said it backs the move in a ‘phased manner’. Oman government grants subsidies to producers of various essential items, which include petroleum products, housing loan
interest, electricity, water and essential food items, including wheat flour. It also offers subsidies to oil firms, housing bank, power producers, flour mills and poultry feed manufacturers and asks them to sell their products and services at a government determined price in a move to help the common people by controlling prices and inflationary pressure within the country. The banking regulator in its recent Financial Stability Report
said, “The seemingly gradual approach to address the issue of price subsidy – aimed at improving social and political economy – looks worthwhile considering the fact that it bears profound impact on the price of energy/petroleum products, which could turn Oman into a high-cost economy adversely affecting the economic growth.” Oman government has been contemplating withdrawing fuel subsidy for the last couple of years, but no decision has been taken so far due to its far-reaching implications on the entire people. The apex bank said that in 2014, while subsidies fell by 17.11 per cent, Oman still had a bill of about OMR1.69 billion. The fall in subsidy was mainly on account of plunging oil prices. Total subsidy and exemption estimate for 2015 is at OMR1.8 billion, mainly for providing subsidy for petroleum products, in-
terest subsidy for housing loan, electricity and water and some essential food items. In fact, the overall subsidy constitutes almost 13 per cent of budget expenditure, which is a growing concern for the government. “The opportunity cost of delaying subsidy cuts has increased with record low oil prices since September, 2014. This places fiscal pressure on Oman’s budget, which incurred a deficit of OMR1.06 billion in 2014 and is projected to increase to OMR2.5 billion in 2015. That been said, there has been plans to address this issue suitably,” the CBO report explained. “It has to be done in a phased manner and that is what is mentioned in the report,” Hamoud Sangour Al Zadjali, executive president of the Central Bank of Oman, told Times of Oman. >A6
1.69b Omani rial was the amount spent on subsidies by the government in 2014 mainly due to a fall in prices of oil, said the Central Bank of Oman
1.06b
Omani rial was the budget deficit in 2014 on account of low oil prices since September 2014 creating fiscal pressure which is projected to increase deficit to OMR2.5 billion in 2015
SUPREME COUNCIL FOR PLANNING
Council reviews Ghala project plan MUSCAT: For the re-planning of Ghala Industrial Area project, allocation of land uses, the development of infrastructure and the final layout for roads and infrastructure, the Supreme Council for Planning reviewed the proposals submitted by the Muscat Municipality.
DIGEST VIDEO Top stories in one minute with our new daily Digest SCAN THIS QR CODE TO INSTANTLY LAUNCH THE VIDEO
ROHM teaching music to community
A6
QURUM AND MUTTRAH
TOP THREE INSIDE STORIES
Three arrested for allegedly using forged debit cards
OMAN
Oman shows the way to tolerance
1
People took to Twitter and other social media outlets and voiced their opinions on Oman’s religious values, human principles and lessons about life. >A5
Times News Service MUSCAT: Three European nationals have been arrested by the Department of Combatting Economic Crimes at the Directorate General of Inquiries and Investigations for allegedly using forged debit cards to withdraw cash from ATM machines. A source at the Royal Oman Police (ROP) said that the department received a call from one of the local banks about unidentified persons withdrawing cash from ATMs located in Qurum and Muttrah by using forged debit cards. After investigations, the ROP caught the two suspects redhanded as they were withdrawing money in Qurum commercial area whereas the third was arrested from a hotel in Al Khuwair. A large amount of money and forged debit cards were recovered from his possession. They have been referred to the public prosecution for investigations, pending production in a court. The ROP has urged people to remain vigilant and immediately report any suspicious activity near ATMs or items placed on ATM ma-
Millennium goals The third meeting of the year held on Wednesday under the chairmanship of Dr Ali bin Masoud Al Sunaidy, Minister of Commerce and Industry and Chairman of the Supreme Council for
REGION
Nuclear angle in $12b Saudi-French deal
2 RAID: Money recovered from the possession of the accused. – ROP
chines. It is suspected that these people have partners working with them in their home country who supply them with fake cards. Banks have been regularly urging the public to change their pin from time to time, to reduce the risk of falling prey to such gangs. Narcotics A national was arrested by the officers from the Directorate General of Combating Narcotics and
Psychotropic Substance for allegedly attempting to smuggle hashish weighing 7.5 kg into the Sultanate of Oman through the Sarfeit border post. In another case, three nationals were arrested in Al Buraimi by the Directorate General of Combating Narcotics and Psychotropic Substance for possessing narcotics. The police found one kilogram of hashish and 10 psychotropic capsules from their possession.
France said it would look into building two nuclear reactors in Saudi Arabia, which is part of some $12 billion in deals announced on Wednesday . >A7
MARKET
Growth of SMEs vital for diversification
3
Small and medium enterprises sector is considered a potential driving force in the country’s non-oil real GDP growth, according to the CBO. >B1
Planning, reviewed the report of the national team for the development goals for 2015 which include the millennium development goals approved for the first stage (2000 to 2015) and the outcomes of the evaluation and the Sultanate’s vision on sustainable development goals. It also took into consideration the indicators developed at Rio+20, United Nations Conference on Sustainable Development. The Council also discussed the outcomes of a study on updating the emergency plan at Sohar Port and Sohar Free Zone.
The project aims at ensuring sustainable development in these two places to address the challenges facing the industrial safety in the future. The Council gave its directive to consider this study as a base that applies to other industrial zones and ports in the Sultanate. The Council affirmed its decision taken at the first meeting on April 6, 2014, about the general layout and mechanisms for dealing with land uses. The Council reviewed the master plan for Khasab Port in the Governorate of Musandam. >A6
CAR ACCIDENT
Three expats caught in dust storm, injured Staff Reporter MUSCAT: Two expatriates were injured after their car met with an accident when they were caught in dust storm in Haima. The two injured, both Indians, are admitted to Nizwa hospital. According to hospital sources and company officials of the injured expatriates, the accident occurred as the driver lost control of the vehicle due to poor visibility near Haima. “One more passenger is being brought to Nizwa hospital. He is a Bangladeshi citizen,” the hospital sources said. Dry winds Dry winds from north have led to dust storms and reduced visibility in many areas, said the Directorate General of Meteorology and Air Navigation (DGMAN). “Masirah, Ibri, Al Wusta, Al Buraimi and Al Dahirah region is hit by dust storm and the horizontal visibility is also low,” the DGMAN tweeted on its official twitter handle. Residents in Ibri and Masirah also confirmed the developments
Dry winds from north have led to dust storms and reduced visibility in many areas.
with the Times of Oman. “Dusty winds were reducing visibility. It was hard to drive,” said residents in Ibri and Masirah. In its forecast, the meteorology department said that skies along the coastal areas of the Dhofar governorate will be cloudy with chances of intermittent drizzle. On Tuesday, the department had predicted a spell of hot weather over the next few days in Muscat and adjoining areas.