PRO 01-04-2012_Layout 1 4/1/2012 12:28 AM Page 1
Massive surge in POL, CNG prices jolts trade, industry: ICCI Page 03
profit.com.pk
Sunday, 01 April, 2012
There’s something fishy going on KARACHI
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STAFF REPORT
olland’s ambassador to Pakistan Mr Gajus scheltema disclosed that a powerful lobby of international fish exporters was strongly opposing the exports of fish from Pakistan to the European Union countries. Talking to mediamen in Karachi he said that the international fish exporters lobby was actively involved in creating obstacles in the way of Pakistan’s fish exports to EU nations. When asked to name the lobby, the dutch ambassador said that the leading international exporters do not want to see fish exports from Pakistan. He, however, that netherland was assisting the Balochistan government to develop Pasni Port and Fish Harbour that would help Pakistan to enhance fish exports to European Union countries. He pointed out that a firm, engaged in the exports of fish, had demanded license to export fish from Pasni to EU. Mr scheltema pointed out that the government of Japan had provided a grant of Rs800 million for the rehabilitation of Pasni Fish Harbour in Balochistan. Holland is engaged in rehabilitation of the harbour so that it meets the required international standards to export fish to EU and other countries in the world. He said that the Japanese grant would be utilised for the procurement of a dredger; maintenance and dredging of the harbour; and extension and improvement of the breakwater. Holland’s ambassador further stated that his country could invest in agriculture, dairy and livestock in Pakistan. He said that Holland is one of the leading producers and exporters of dairy and livestock products in the world. He said that Holland and Pakistan should explore the agriculture, dairy and livestock sectors for mutual investment. some dutch companies are willing to explore avenues of investment in these areas in Pakistan and the companies could export agriculture, dairy and livestock products to European Union. He said that Holland was keen to enhance trade with Pakistan and also supporting Pakistani business people who seek to export to the netherlands. scheltema said that their ‘Centre for Promotion of Imports from developing Countries’ waseducating Pakistani exporters for improvement of their products to export level quality. He said that Pak-
Strong lobby opposing Pakistan’s fish exports to EU
istan has a huge potential in agriculture and food processing sector and Holland is planning to invest in these sectors. He also pointed some trade hurdles in importing of cows and cattle from netherlands to Pakistan. He further said that Holland was willing to help government of Pakistan in promoting the wind energy in the country. He said that he had recently met the Federal Minister for Water and Power syed
naveed Qamar and apprised him of the dutch companies interest in developing wind energy projects in Pakistan. Mr scheltema said that Holland had strongly supported Pakistan in getting the GPs+ facility from the European Union that would help this country to enhance its textile exports share to EU markets. He said Holland was enjoying very cordial relationship with Pakistan and he was mak-
A timely plunge g
LPG prices to drop by Rs 10,000 per tonne LAHORE
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STAFF REPORT
olloWInG the decline in international saudi aramco Contract Price, local lPG prices are expected to decrease by Rs. 10,000 per ton with effect from Monday. The new saudi CP for april at Usd 993 per ton represents a sharp
decline from the March CP of Usd 1200 per ton which was a record high. However local lPG Producers had fixed their prices at Usd 1088 per ton for the month of March; a discount of Usd 112 per ton from March CP. “The impact on local prices will be Usd 95 per ton and not Usd 207, since local producers had partially absorbed the impact of last month’s
CP by reducing their base stock price. The new Producer Price inclusive of taxes will be Rs. 104, 920 per ton” said Belal Jabbar the spokesman for the lPG association of Pakistan. lPG sales have been sluggish since the start of the year due to record high international prices with which local prices are indexed and additional local production from fields in sindh. Moreover cheaper
ing efforts to strengthen the bilateral ties between the two countries. Holland plans to earmark 30 million euros for clean drinking projects in urban cities and some other water-related projects in Pakistan, he said. He said Holland had already worked in various water sector projects and keen to invest in water management, flood control, clean drinking water, waste water treatment and de-silting projects.
lPG imports from Iran, where product is available at a substantial discount to the saudi CP have witnessed an unprecedented rise. despite shutdown of PaRCo refinery which contributes 25% to the country’s lPG production, local lPG producers have been struggling with the off take of their product. “The CP linkage policy needs to be revisited in light of additional local production and cheaper imports from Iran. The import terminals in Karachi including one acquired recently by ssGC have been idle since January” said Belal. Retail prices are expected to drop to Rs. 128 per kilo in Punjab and northern areas and to Rs. 123 per kilo in Karachi. Prices of domestic and commercial cylinders will be Rs. 1510 and Rs 5811 respectively.
commEnT
I
T dillied and dallied and had its share of jumps and starts, but fortunately the cabinet goahead to India specific phase out of negative trade list was followed by a reassuring rally from all concerned quarters. The near 500 businessmen and executives due to cross over to new delhi next month will iron out any unwarranted rigidity in way of smooth and swift price rationalisation, which means a degree of appreciated seriousness marks the first time ever the two neighbours have come this close in trade terms. Finally pundits (on both sides) that favoured economic give-and-take before engagement on contentious issues stand vindicated. But in and of itself the trade liberalisation – though fruitful and progressive – achieves little in terms of realising the subcontinent’s greater productive potential, or even scratching its surface. Both governments need to follow the present wave of confidence building measures with concrete steps that the exercise of ’06-’08 did not precede, and hence fizzled out. The financial must now gel with the political, and prudence dictates that the two governments now look to initiate mutually beneficial mega projects that will bind the interests of both for the long term. once these take off, and their benefits reach common people, not only with both capitals find it politic to proceed with less pleasant issues, they will also be eager to compromise more, seeing how unnecessary brinksmanship will quickly undo other benefits. Interestingly, the commerce ministry’s initiative to connect more deeply with India began just when Pak-India relations were deteriorating again, each faulting the other’s inflexible position on the terror threat even as it made greater inroads than ever before on both sides. In light of this, the success is all the more appreciated. and while the usual time lag plays out, both Islamabad and new delhi should take heart that a significant chapter has been turned in our complex and complicated history. so trade it is, at last.