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
H
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
F
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.
PRO 01-04-2012_Layout 1 4/1/2012 12:29 AM Page 2
02
Sunday, 01 April, 2012
news
PoWER PREDIcAmEnT
Iranian sanctions
PAAPAm’s
mi ion do ar idea g
Season 19, Episode 136 President Obama takes the decision on sanctions against Tehran, as the rest of the world starts peeking into their wallets apprehensively
PAAPAm chairman says handing over power distribution to provinces would solve everything
LAHORE STAFF REPORT he Chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) and the Business Forum of Punjab (BFP), Syed Nabeel hashmi, while taking a strong exception to severe power outages and overbilling, has suggested the centre to hand over power distribution as well as management system to provinces which, according to him, is the best possible solution to rid the country of prevailing energy crisis. After the 18th Amendment, though the provinces have the authority to generate power, yet it is of no use since the electricity produced first goes to national grid system and then it is supplied to consumers through power distribution companies, he said. In a statement issued here on Saturday, he said that the Federal govt, which presently controlled the load management as well as power distribution system, continued to penalize those consumers, who pay their bills regularly, by imposing fuel adjustment surcharge (FAS). In view of enhancing revenue and checking power theft, he opined that load management and distribution structure must not be with the centre, advising the authorities to allocate electricity load to each province as per the payment, besides distributing power at local levels. he asked the government to devise such a scheme which ensured steady supply for those who pay their bills regularly. This step by the government would discourage the culture of power theft and non-payment of bills, besides enhancing revenue to get rid of the circular debt, which had enslaved the whole energy system in the country. he urged the government to allocate funds in the forthcoming budget for new power projects and construction of new dams to generate cheap and sufficient electricity. The PAAPAM chairman warned the government of massive layoffs and industrial closures if it failed to
KUNWAR KHULDUNE SHAHID Ho needs a sitcom for a good laugh when there are President obama’s speeches with regards to Iran for us to enjoy. of course, the Us frustration due to their failure in ensuring that all countries acknowledge them as the godfather of the world, means that the Us can be significantly perilous to the collective backsides of their targeted nations; but isn’t there good humour to be extracted from obama’s dialectical chaos? He is relentlessly trying to cover up the fact that there are no double standards involved in this nuclear proliferation debate, even though the treaty is as skewed as a windup clock that stops functioning at midnight. In this latest agonisingly hilarious episode, Washington has upped the ante – for the umpteen millionth time – on its sanctions on Tehran’s nuclear programme, with the former adamant on their stance of “you know you’re making a nuclear bomb” and the latter adamant on their stance of “you’ve got to be kidding me!” oh and the Us has stressed that these latest sanctions would be the “toughest to date,” – I mean you could imagine Mahmoud ahmadinijad sitting in his lounge with his feet up, watching this newsbreak and shaking his head with a smirk on his face. Friday’s decision declares that global oil markets could still get sufficient supply even if a huge share of the Iranian oil pie – which is around 2.3 million barrels a day – is removed from the equation. This would be the dagger in the Iranian exchequer and would force Iran into abandoning their uranium enrichment programme. Well, at least this is how Washington’s rose-tinted glasses see it unfolding. In the real world, where logic – and self-interest – governs most matters, it is hard to see nations going with Washington’s “because I say so” orders in lieu of their own interests. This move would allow Washington to sanction foreign banks that are involved in the fund-transfer apropos Iranian oil. and that in turn would force these countries to wave the Iranian oil goodbye or be ready to face the Us ‘wrath’. Washington is trying to isolate Iran’s central bank, which is responsible for processing nearly all of the Iranian oil purchases from the global economy. and while there are countries like south Korea who’d ostensibly be agreeing on shunning the biggest source of quenching its gargantuan oil needs, there are the likes of China as well that is paying no heed to the relentless american clamour. While the White House acknowledges the “tightness” in the oil market, it has apparently thrown all the
W
immediately stop 10 to 12 hours power outages in industrial areas. he hailed Punjab CM Shahbaz Sharif for raising voice against inequitable load management and supporting the cause of common man. he urged the government to share its future energy plan with industrial bodies because the highest-ever electricity tariff and more than 12 hours power outages have crippled trade and industry. he said that the industry needed a continuous supply of electricity to keep the units operational and to complete the export orders well within the given timeframe but only because of the shortage of electricity the exports were not up to the mark. PAAPAM Vice Chairman Munir K. Bana said that Pakistan had already lost a number of international markets and the now the prolonged power cuts would further aggravate the situation. he said that cheaper and uninterrupted power supply was the only way to achieve economic targets set for the year 2012 but neither the government was sharing its future plans to this regard nor paying any heed to the difficulties being faced by the trade and industry. Mr Bana said that unemployment, price-hikes and industrial closures always give birth to lawlessness and anarchy. Therefore, the government should understand the ground realities and reset its priorities regarding provision of electricity to the industry, he stated. he said that it is astonishing that on the one hand the government circles were talking of economic stability in 2012 while on the other hand they were not sharing any kind of roadmap to achieve this goal. Now the leading industrial units were experiencing losses despite being managed professionally, he said. he added that the most of industrial units had already reduced their working to single six-hour shift from the previous three shifts system. This had led to increased level of raw-material wastage leaving production process non-profitable.
permutations, combinations, probability formulae, and mathematical equations into the drawing board before coming up with this decision. a White House statement on Friday stated, that the determination had been made “taking into account current estimates of demand, increased production by some countries, private inventories of crude oil and petroleum products, and available strategic petroleum reserves.” In simple words, even if there is a significant dent in oil fulfillment for nations that would be abandoning Iranian oil, they’d be wrong because the White House drawing board would suggest other wise. Congress’ decision in december meant that obama needed to come up with the final decision by March 30 – and also after every six months then onwards. and surprise, surprise! obama decides on taking the sanctions up a few notches. The Us has vowed to increase its oil supply and lower the prices to control the soaring oil prices, and it is getting over the top support from the saudis in this quest as well. The EU embargo, which was agreed upon in January takes effect in July, and these latest sanctions would be implemented in June. and while on the surface things seems like going according to the plan for the american hierarchy, maybe, just maybe when the allies begin locating holes in their wallets, the sanctions would end up falling flat on their head. The writer is Sub-Editor Pakistan Today. He can be reached at khulduneshahid@gmail.com
PRO 01-04-2012_Layout 1 4/1/2012 12:29 AM Page 3
Sunday, 01 April, 2012
news
massive surge in PoL, cnG prices jolts trade, industry: IccI ISLAMABAD ONLINE
I
slaMaBad Chamber of Commerce and Industry (ICCI) saturday strongly criticized the massive surge in the Pol product and CnG prices. Rejecting another unjust increase in the petroleum and CnG prices, Yassar sakhi Butt, President ICCI said that massive increase in Pol and CnG prices would have a crushing impact on poor masses and shatter all segments of society. The President ICCI was of the view that over the past four years, petrol prices in the country have gone up by 51 percent as oppose to an increase of 15 percent in the international market followed by CnG price which has alarmingly increased by almost 110 percent to Rs88.70 per kg from Rs31 per kg in 2008. He expressed deep concern upon sluggish production activities in the industrial units due to power load shedding and said that the recent increase in petroleum products prices would give a big blow to the industry and have devastating impact on other sectors as well. Yassar sakhi Butt said that due to inappropriate and badly chosen policies of the Government the prices of essential commodities are going higher day by day. In such a critical situation, the announced increase in prices on Pol products would jack up the graph of inflation further high and hit the common man hard as our citizens were already burdened with bleak economic conditions, he added. Commenting upon the international oil prices, the ICCI president said that there has not been much of an increase in the international price of oil since 2008. on contrary, Government was continued to give excuse of international oil price hike to justify high power prices being charged domestically, he opinioned. He said that Islamabad Chamber of Commerce and industry for the last many months had been calling the concerned government circles to take measures for the promotion of alternate fuels as trade deficit was fast widening due to heavy imports under the head of petroleum products.
You’ve got to be kidding us! APcnGA rejects increase in cnG prices ISLAMABAD: all Pakistan CnG association strongly rejected exorbitant increase in CnG price and called its CEC meeting to review the situation. Chairman aPCnGa Ghyas Paracha told online that this increase is illogical and unacceptable and it will invite inflation storm and will ignite fire in Masses. He said that countries all around the world rapidly adopting CnG fuel while we are going to ruin ours. He said CnG consumers have already been disturbed by unjust three days load shedding and now this price hike is in addition to it. CnG sector which is paying highest tariff has been facing severe Gas load shedding for three days a week, facing low gas pressure for another 2 days and facing severe power outages in rest of 2 days. He said this kind of treatment never with held to CnG sector before but now and government is grabbing taxes through CnG beyond limits and repaying not a single relief to public CnG fuel is being promoted all around the world especially in Europe and Usa. american President himself promoting CnG campaign but on the other side we are, full of natural gas resources, possessing largest infrastructure, highest nos. of CnG stations and CnG vehicles, are now going to ruin our wealth and investment. He said we have called upon an urgent meeting of aPCnGa Central Executive committee and will announce our line of action after its decisions. ONLINE
03
‘Sort out politics, and you’d stop economic deterioration’ ISLAMABAD ONLINE
T
HE country’s economy is deteriorating day by day due to incompetent economic team and bad governance for which some unpopular decisions on political front is needed in the larger national interest. While talking to online on saturday, the president Pakistan Economy Watch dr. Murtaza Mughal said that incompetent economic team and bad governance have brought the country’s nascent economy on verge of destruction for which political leadership is needed to be taken some unpopular decision so that some improvements could be brought in ailing economy of the country. He said that unpopular reforms will take time to produce results but will restore the market’s confidence which is diminishing due to impression that rulers are willing to risk everything to prolong rule and protect personal wealth. “doubts, uncertainty, panic and pain has become part of the life for commoners as well as business community,” said dr. Mughal, adding that loss of confidence is a very serious issue taken lightly by the politicians while the experience shows that it is impossible for a country to regain the faith of market once lost and our leaders must act boldly and swiftly through parliament to boost lackluster growth rate. He said that economic team has failed so far to bring ailing economy on track because of their incompetence and lack of decision making powers, coordination and consistency in economic policies. President Economy Watch said that this was the right time for taking some tough decisions from political side so that the present government will be able to face the masses boldly in upcoming elections.
Shipping activity at Port Qasim KARACHI APP
T
HREE ships arrived at Port Qasim on Friday 30 March, 2012. carrying containers at QICT chemicals at EVTl and fertilizer at FaP. Berth occupancy was managed at the Port at 50% on Friday where a total of seven ships namely M.V Csd Batang annai, M.V CMa CGM Eiffel, M.V MsC sena, M.V UMM ad dalkh, M.T Bunga angelica, M.T Harsandi, M.T al soor-II are currently occupying berths to load/offload palm oil, containers, diesel oil, Fertilizer, chemical was handled at Port last 24 hours. Cargo handling operation were carried out smoothly at the Port where a Cargo volume of 58253 tonnes comprises 44044 tonnes imports 14209 tonnes exports, 1887 Tues was handled at the Port during last 24 hours. M.V MsC sina and M.T alsoor-II sailed at Friday afternoon. M.V CMa CGM Eiffel sailed at saturday morning. M.T Golden dynasty at lCT arrive on 31 March 2012.
OIC Ambassadors Conference will be a landmark: LCCI LAHORE
T
STAFF REPORT
HE oIC ambassadors Conference being arranged by the lahore Chamber of Commerce and Industry would be a great landmark therefore the government of Pakistan fully endorses it and would extend every possible help to make it a big success. This was stated by additional Foreign secretary Munawar saeed while talking to the lCCI President Irfan Qaiser sheikh at the lahore Chamber of Commerce and Industry on saturday. director General oIC ayaz Khan, lCCI former Presidents Bashir a Buksh, Mian anjum nisar, former senior Vice President sohail lashari, former Vice Presidents aftab ahmad Vohra, sohail azhar, Executive Committee members Husnain Reza Mirza, Mehmood Ghaznvi, Zeeshan Khalil, Fahimur Rehman sehgal, Ch Wajid ali, sheikh Mohammad ayub also spoke on
the occasion. The top Foreign Ministry official said that the government is focused on and committed towards the promotion of intraregional trade and lCCI oIC ambassadors Conference, scheduled for april 14, 2012, would be supplementing the government efforts in a big way. He said that since early 1970s, member states of the organisation of the Islamic Conference (oIC) have been pursuing the goal of enhancing economic and commercial cooperation to improve the economic linkages and coordination among themselves and to jointly act against the global challenges facing them. special attention has been given to trade and considerable efforts have been exerted at various oIC forums to develop ways and means of joint cooperative action to increase trade among the oIC countries. He, however, stressed the need for market diversification as there are seven countries in the african region that have attained the status of the
fastest growing economies of the world and offers huge business opportunities to Pakistani entrepreneurs. “We need to look at africa and latin america as in north african region Pakistan’s presence is very week.” Talking about Iran-Pakistan gas pipeline, the additional Foreign secretary said that work is in progress on this project of national importance that is an answer to our energy woes. He also spoke about potential exists in Thar coal, saying that some coal gasification projects are well on way despite the fact that there are technical issues that are coming in the way. speaking on the occasion, the lCCI President Irfan Qaiser sheikh said that the oIC ambassadors Conference would help explore and exploit the potential of trade and investment among member countries of the oIC. The lCCI President said that it is high time that we should change the direction of our foreign policy towards economic diplomacy. For that matter the role of chambers of commerce cannot
be overlooked. “We will certainly like to contribute by also participating in Bilateral and Multilateral Committees.” Irfan Qaiser sheikh said that all Preferential Trade agreements which are yet to be finalized should be completed on priority basis. The lCCI President sought the Foreign office intervention for early finalization of currency swap agreement with Iran as only because of the absence of banking channels a lot of trade activity can not be materialized. The lCCI president said that with the passage of time the regional trade has emerged very successful around the globe. Comparing to various economic blocs around the globe, we have been least active and successful in forming an effective bloc. He said that the idea of launching a strategic Joint Chamber of five countries including Pakistan, Iran, Turkey, China and Russia was mutually agreed by the lCCI and the Foreign office and now there is a dire need to decide about the action plan.