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How can a country achieve 280% jump in its export volume within three years amidst a large number of closed industrial units
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BUSINESS Sunday, 3 February, 2013
Auto parts SMEs complain of no access to bank credit KARACHI INP
Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) Chairman, Munir K. Bana has appealed to the government to declare Auto Industry as a “key industry”, as it provides livelihood to over 5% of the country’s population, saves valuable foreign exchange and contributes almost 3% of GDP. He clarified that the Auto Industry comprised of Assemblers of various vehicles (i.e. cars, motorcycles, tractors, buses & trucks), as well as the Auto Parts Manufacturers (APMs), who produce the entire spectrum of engineering technologies necessary for assembling an automobile. He said that a majority of the Auto Parts Manufacturers were SMEs, and this category unfortunately had no access to traditional bank credit. He stated that Governments in the West offer bailout packages for the auto industry in times of crisis, but unfortunately our government does not have the resources to support auto industries in Pakistan, even though these industries generate employment, save foreign exchange through import substitution and, being fully documented, honestly pay their fair share of taxes.
Rs93.908 billion waived off in fiscal year 2011-12 ISLAMABAD ONLINE
The government has granted a whopping relief of Rs 93.908 billion in income tax and sales taxes during fiscal year 201112. Sources told Online here yesterday told that 298.046 billion rupees of Income tax and Sales tax were waived off during last four years. Rs 203.514 billion income tax waived off from fiscal year 2008-09 to 2011-12 while Rs 94.532 billion sales taxes waived off in the same period. The source informed that Rs 40.864 billion income tax was waived off in fiscal year 40.864 and Rs 46.534 billion waived off in 2009-10. In fiscal year 2010-11 Rs 46.508 billion rupees were waived off and during last fiscal year 69.608 billion rupees of income tax were waived off. He further apprised that in fiscal year 2008-09, 17.500 billion rupees of sales tax were waived off and in 2009-10 Rs 27.409 billion were waived off. During fiscal year 2010-11 25.323 billion rupees while during last fiscal year 2011-12 24.300 billion rupees were waived off. The source said during last few years attempts have been made in the past to have reasonable estimates of quantum of tax evasion but such estimates were prone to error because of non availability of veritable information. He said that huge size of unorganised sector and non documentary of economy. As such any estimates will not be free from fallacy as it will be base on incorrect statistics. The source said that independent experts said that in a country like Pakistan, where not many people regularly paid taxes, the government should review its tax exemption schemes that were frequently manipulated, even abused.
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PPRECIATInG the cabinet decision of Pak-Iran gas pipe line approval and handing over of Gawadar Port to China, traders have insisted the federal government to continue this amended foreign policy, as the foreign policy is fundamental to improve export of any country. In a statement issued here yesterday, APAT General Secretary naeem Mir said that Pakistan can raise the current export volume of $5.36 billion to the EU by at least $2 billion through attaining GSP Plus status after implementing 27 conventions of the United nations, including complete fulfilment of human rights and labour laws. He said that the trade policy framework for 2009-12 was failed because of multiple reasons which were designed to provide assistance only to textile sector. He asked the government to solve the energy crisis if it wanted to achieve the targets, besides bringing down the policy rate as per the regional countries of 7% to support industry. He pointed out that worsening law and order situation was also discouraging both the local and foreign investors to put their money in new ventures abroad. He said that the muchdelayed Strategic Trade Policy Framework (STPF) 2012-15 with exports target of $95 billion was an ambitious one, as it had projected 280% increase from the prevailing export figure of about $25 billion while economy growth will remain
in the range of 4 per cent next year mainly due to prolonged severe energy crunch. With financial growth of just 3.7 per cent how a country can achieve 280% jump in its export volume within three years amidst a large number of closed industrial units, as power and gas load shedding had pushed the industry to the wall, asked naeem Mir. He said that the PPP-led coalition government had unveiled a three-year trade policy framework, at a time when few weeks have left of its ongoing tenure, though it was supposed to be announced in July or August last year. He suggested the government to immediately grant MFn status to India with all stakeholders onboard, as committed by the cabinet to achieve higher export target which cannot realised without enhanced regional trade. He said that Pakistan was reaping a clear peace dividend by opening up trade with India, as Pakistan’s exports to India grew by 66% between April and December 2012 over the same period in 2011. With a new liberalised visa regime in place, both countries can expect this figure to go up further, he said. He asked the government to focus on promoting non-traditional agro-processed exports, increasing exports from less developed regions, revamping export promotion agencies including TDAP, increasing green exports and pursuing product and market development and diversification. He said politicians were recklessly spending public funds, misusing powers and robbing masses to ensure victory in upcoming election despite their miserable performance over the years.
EXPORT TARGET OF $95 BILLION NOT POSSIBLE TO ACHIEVE WITHOUT UNINTERRUPTED SUPPLY OF ELECTRICITY AND GAS: FCCI ISLAMABAD: Export target of $ 95 billion would be difficult to achieve, envisaged by the Strategic Trade Policy Framework (STPF) 2012-15, without uninterrupted supply of electricity and gas and improving the law and order situation, said Faisalabad Chamber of Commerce & Industry (FCCI) President Mian Zahid Aslam here yesterday. He said that statistics reveal unhealthy trend in the growth of Large Scale Manufacturing (LSM) and relocation of industries to other countries notably Bangladesh was getting hot due to loadshedding, high input costs and low credit availability to the private sector, an engine of growth, due to heavy borrowings by the Government from banking sector. It was evident that natural gas plays a dominant role in the country’s energy mix and textile sector largely depends for full scale production process on the uninterrupted supply of gas also, he added. Depending on the forecasts for gas demand -supply gap in the following years, he apprehended that production capacity utilisation of industries will remain hostage to the lowest ebb if load-shedding of gas and electricity was not overcome by the Government now and in future. He appreciated the positive steps as to establish Exim Bank, Pakistan Land Port Authority and other export-oriented measures in STPF 2012-15. He, however, said that $ 95 billion export target would be difficult to achieve without uninterrupted supply of electricity and gas and improving the law and order situation in the country. Chamber chief said owing to this severe shortage of electricity and gas, it will be difficult even to meet the export target of $ 16 billion for the year 2012-13 which was evident from 60 percent less orders received by Pakistani exporters in the recent ‘Heimtex’ Germany as foreign buyers lack trust for on time shipment of their orders. He urged the Government to provide uninterrupted supply of gas and electricity to the textile industries particularly in Punjab, lowering the cost of doing business, reduced cost of raw materials and improved law and order situation to achieve the export target envisaged in the STPF 2012-15. INP
Lahore becomes 2nd largest jewellery production hub ISLAMABAD APP
Lahore has become the 2nd largest jewellery production hub of Pakistan after Karachi, as more than 25000 business enterprises related to gems and jewellery are operating in Punjab, providing employment to more than 20,0000 individuals. Traditionally Lahore had always been a land of finesse artisans and this tradition had transcended in the jewellery industry as well. Continuing its progress on the mandate of development of gems and jewellery industry, Pakistan Gems and Jewellery Development Company (PGJDC) had established a Gems and Jewellery Training and Manufacturing Centre (GJTMC) at Lahore. The centre is successfully providing training and common facility services to the gems and jewellery industry of Punjab. Talking to APP, an official said the training center was not only for the jewellers but for everybody who wanted to learn to design jewellery. “With its new approach in jewellery making, GJTMC will help refine artistic abilities to making jewellery while working in a creative and rewarding jewellery profession”. Classes are taught through live demonstrations, as well as though lecture supported by multimedia presentations and comprehensive exercises which provide students with rich and rewarding learning experience in the best suited environment. Official said GJTMC Lahore possesses a highly qualified, immensely experienced and very dedicated faculty who helps the students to bring forth their creativity and convert dream ideas into beautiful jewellery pieces. In an effort to further support the growing industrialisation of the
province, PGJDC intends to open a GJTMC in thriving gems and jewellery industry of Sargodha in near future as well. Gem exhibition attract people in larGe number: The third annual Islamabad Gem Exhibition, featuring Pakistan’s minerals, precious gemstones and jewellery, remained the point of attraction for residents of twin cities of Rawalpindi and Islamabad, here yesterday. Third Islamabad Gem exhibition commenced here on Friday, showcasing the best of Pakistan’s Gems and Jewellery products, both traditional and contemporary class. Pakistan Gems & Jewellery Development Company (PGJDC) is organising the grand event of international standard, a 3 day extravaganza from February 1-3. The event highlighted Pakistani Gems and Jewellery products in the most versatile manner, where the international buyers were introduced to the rich Pakistani market. According to an official in PGJDC Abdul Ahad this event focused on exhibiting Gems and Jewellery produced through latest technology and skills. He said the intricately crafted jewellery and precious/semi-precious gemstones found in Pakistan were being revealed to an entire new market and foreign buyers. The exhibition provided a lucrative platform to the thriving gems and jewellery sector of the country, where enabling environment was created both for local and international traders to interact and promote business. “Jewellers, gem dealers and manufacturers of sectoral machinery, tools, equipment and accessories have displayed their products during the Show”. Ministry of production Secretary Gul Muhammad Rind inaugurated the exhibition here on February 1.
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Sindh could become future powerhouse of the world due to huge coal reserves, wind corridor and availability of ever-present sunlight to produce solar energy — Muhammad Zubair Motiwala
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TuRkEy EyES ThAR CoAl foR powER gEnERATion TURKISH DELEGATION DUE IN PAKISTAN TO EXPLORE INVESTMENT OPPORTUNITIES KARACHI STAFF REPORT
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URKEy is seeking an energy delegation to visit Sindh to further explore investment opportunities in Thar Coal and energy sector of Sindh.
This was expressed by Sindh Board of Investment Chairman Muhammad Zubair Motiwala while giving briefing on opportunities and investment potential of energy sector in Sindh during a meeting with Ministry of Energy, Government of Turkey at the office of Ministry of Energy Government of Turkey, Ankara. Speaking on the occasion, Motiwala said the SBI welcomed the kind cooperation and facilitation from the Turkish authorities. He invited the Turkish investors to come and invest in Sindh which could become future power house of the world due to huge coal reserves, wind corridor and availability of ever-present sunlight to produce solar energy.
He said Sindh was blessed with the world’s best wind corridor which had average wind speed of 7-8 m/sec. Two companies M/s Zorlu and M/s Fina of Turkey had already invested in wind energy power project in Thatta district of Sindh. During the meeting the Turkish government showed keen interest in the Thar coal region. The meeting was attended by the representative of Ministry of Energy (Turkey), directorate general of Energy, Investment Planning and Power Generation Corporation (Turkey), general directorate of Coordination of European Union (EU), Turkish Oil Enterprises, Modern Research and In-
vestment Institution (Turkey) and Geological Research Department of General Directorate of Energy. Dr. nevzat Kavakli, Turkish under Secretary at the Ministry of Energy, said Turkey had an intention to increase bilateral cooperation with Pakistan. He said his country required huge volumes of coal for electricity and power generation. He said Turkey’s annual coal imports were more than 22.0 million tonnes to cater domestic needs. Turkey was producing more than 8000MW of power from lignite coal. The Ministry of Energy proposed to enhance cooperation with Sindh through con-
tinuous efforts and showed keen interest to explore Thar coal in more detail. Government of Sindh Secretary Coal and Energy Development Department Ajaz Ali Khan who is a member of the delegation, briefed the meeting on the quality and quantity of the coal and the opportunities of investment in Thar region. He also highlighted the incentives announced by the government of Pakistan to support investment in Thar Coal. The Turkish side highly appreciated the technical details of the lignite coal at Thar and reaffirmed that in short time a team of technical experts would visit Sindh to further explore the opportunity.
CORPORATE CORNER Samsung organising ‘Creative guru’ to celebrate success of galaxy note ii
demonstrate their creative talents by using the S-Pen and uploading their finished art-works through the “Note-II Creative Guru” application on Samsung’s facebook page. Samsung fans from all over the country can view the Gallery and vote for their favorite drawings, whereby the contest winners will be given valuable prizes including Galaxy Note-II smartphone. PRESS RELEASE
BBC urdu’s Sairbeen to launch on local TV channel from 11th LAHORE: Samsung Electronics Co. LTD the global technology leader is celebrating the overwhelming global success of the “Samsung Galaxy Note II” by holding “Creative Guru” activity at various cafes across Pakistan. Launched in October 2012, the Galaxy Note-II is an intuitive smartphone and a fascinatingly creative device. Worldwide sales of the S-Pen enabled Galaxy Note-II had exceeded five million units within two months of the launch, while the figure continue to grow rapidly .This Smartphone is consistently selling at more than three time the pace of the Note-I its predecessor. The inauguration ceremony was held at the Atrium in Mall of Lahore on 1st February, 2013 attended by prominent personalities along with the Television, Print, Radio and online Media .During the ceremony, a Qualified sketch artist from the National College of Arts, was engaged to use the creative feature of Note II, and draw a sketch of Humaima Malik the renowned TV & film star and guest of honor at the ceremony. Humaima was delighted to receive a Note-II smartphone from Samsung as a gift. After being rolled out from Café Zouk Lahore, the Note-II ‘Creative Guru” events will hit various top Cafes and Art Institutes in Lahore. Later this contest will continue its journey through trendy cafes in Karachi and Islamabad. The highlight of these shows will be the opportunities for participants to win free Galaxy Note-II smartphone. The Business Head of the Mobile Phones (Pakistan & Afghanistan ) of Samsung EC Pakistan Private LTD Mr Farid Ullah Jan said “ A great customer response is generated by the comprehensive mobile experience and delightful expressive freedom delivered by the Note-II. Users can create personalized, complex and highly expressive content for instant sharing, through a wide range of social networks. It gives unmatched ease in capturing those “big ideas” using Samsung ‘s creative “S-pen” technology, to accurately digitize sketches, artworks and handwritten text, besides offering a revolutionary “Caricature” feature”. Note-II “Creative Guru” contest invites every one, to
KARACHI: BBC World Service has announced the upcoming launch of the first ever BBC Urdu TV programme, Sairbeen, which will be broadcast from Monday 11 February on Express News channel in Pakistan. The new BBC TV programme builds on the longstanding success of the flagship daily BBC Urdu radio programme brand, Sairbeen, which is a household name in Pakistan. The launch of the new TV programme with the same name further strengthens the BBC’s offer to the region and commitment to audiences in Pakistan. Sairbeen will showcase BBC Urdu talent and regularly feature well-known BBC Urdu journalists, as well as harness the regional knowledge of the BBC Urdu correspondents working in Pakistan and across the world. Working closely with Express News TV, BBC Urdu will share this journalistic expertise whilst also benefiting from Express News’ broadcast and newsgathering operations. BBC Urdu, which has been broadcasting to the region since 1940, is a news and information service providing audio, video, text and graphic content across a number of platforms including MW, FM, mobile handheld devices and online via. PRESS RELEASE
innovative Energy Solutions Expo & young Energy leaders Award KARACHI: In its bid to overcome power generation crisis, promote innovative energy solutions, and empower the youth, Pakistan’s premier magazine Energy Update, in collaboration with, Alternative Energy Development Board (AEDB), Ministry of Water & Power Govt. of Pakistan, Renewable and Alternative Energy Association of Pakistan (REAP), Institute of Research Promotion (IRP), Pakistan German Business Forum (PGBF), Young Engineers’ Association (YEA), and Solarization Welfare Organization (SWO) has planned to recognize those brilliant engineers working on projects that could
make a difference to society. This event shall take place at the prestigious forum of its 6th Power Generation Conference & Exhibition (PowerGenPak2013 scheduled at Karachi Marriott on Feb 26, 2013). The Management of University Industry Partnership (UIP) has urged young engineers (students and professionals) to actively participate in UIP Exhibition on INNOVATIVE POWER SOLUTIONS, ENERGY CONSERVATION & ENERGY EFFICIENCY. The UIP Exhibition aims to facilitate university students and faculty through R&D based liaisons with industries, so as to provide the industries in particular, and the country in general, with efficient and innovative energy solutions. Furthermore, the participants will also have opportunities to meet decision makers and leaders in the energy sector, and also get their projects funded at the forum. Their projects shall be analyzed by a panel of scientists and engineers, to determine the recipients of the Young Energy Leaders Award (YELA ’13). Top three projects shall be awarded cash prizes worth PKR 100,000 along with mementos, certificates and media coverage. PRESS RELEASE
Bok assets reach net worth of Rs 82 billion
LAHORE: The Bank of Khyber (BOK) assets reached to Rs. 82 Billion by December 31 December showing growth of 20% over Rs. 68 billion of cross pending period of last year. This was stated by Mr. Bilal Mustafa Managing Director BOK in his key note address at BOK Operational Performance Review Manager’s Conference-2013 held this morning in Lahore. The Conference was attended by Mir Javed Hashmat Executive Director BOK, Mr. Imran Samad Group Head Credits Management, Mr. Kamran Masood Khan Group Head Islamic Banking, Muhammad Tariq Naseem Group Head HRD apart from Divisional Heads from Head Office, Chief Managers and Managers from across the country. Mr. Bilal Mustafa lauded the growth in all operational areas of the BOK during 2012 and expressed his confidence over the field staff and Head office supporting team, adding that
we have to work with more devotion and diligently to achieve the targets of MCR set by the State Bank of Pakistan out of which by December 2012 we achieve Rs. 9 plus Paid-up Capital target successfully and remaining we will achieved as and when time comes. Mr. Bilal Mustafa Managing Director BOK declared 2013 as “Year of Excellence” to ensure efficient services to the customers, with a touch of professionalism and to facilitate trade & business community with extending loans focused on small & medium enterprises. He said that due to increase in branches network, we could attract more clientage which would alternatively help us to grow our deposit and advance base. He also welcomed the Chief Managers, Managers and field staff newly opened branches of BOK start operations in 2012 .Mr. Bilal Mustafa mentioned that in-spite of unfavorable economic conditions across the country specially in our Province, BOK total deposits shows 32% growth while advances shows 20%. Mir Javed Hashmat Executive Director in his address said that professionalism is a key to success and presently in financial sector the competition required that we should be services oriented financial institution in order to achieve the desired goals. PRESS RELEASE
MD terms campaign against nESpAk a personal vendetta LAHORE: In its meeting held on 24th Jan 2013, the PAC forwarded a report of its Sub-Committee on NESPAK’s internal matters and alleged irregularities purported to have been made in promotions and appointments. All this, was on the behest of one MNA Ayaz Sadiq, whose demand for promotion of two NESPAK employees was not favoured by the Managing Director. Thus began the relentless assault on NESPAK by the PAC Sub-Committee, particularly just two members out of seven, casting aspersions on NESPAK’s purely administrative matters and questioning actions and decisions taken by the MD. A blatant case of personal vendetta against the MD, was pursued with relish, by MNA Ayaz Sadiq, single handedly, spearheading the entire smear campaign against NESPAK and its Management - for the only purpose to see the MD removed from office for his fully exposed ulterior motives and paving the way for a Vice President, who unbecomingly is already in cahoots with him. That NESPAK, which is a Private Limited Company established under the Companies Ordinance 1984, is entirely lost to most members of the PAC, who were repeatedly informed that NESPAK employees are not government servants and therefore not subject to scrutiny under government rules. PRESS RELEASE