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Wednesday, 5 December, 2012
CNG associations under the gun CCP constitutes inquiry committee to check associations ISLAMABAD STAFF REPORT
C
OMPETITION Commission of Pakistan (CCP), has appointed an enquiry committee with a mandate to conduct an enquiry as to whether CNG associations and/or their members are engaged in anticompetitive practices in violation of Section 4 of the Competition Act, 2010 (the ‘Act’). The Commission also authorized a team of officers to conduct search and inspection of the premises of the associations namely: All Pakistan CNG Association, CNG Dealers Association and CNG Station Owner Association of Pakistan under Section 34 of the Act. The search and inspection was duly conducted by the authorized officers both in Islamabad and in Karachi. The Commission has expressed appreciation for the cooperation extended by the staff of the association in con-
ducting the lawful search and inspection. The documents have been impounded from the premises of the associations and will be duly scrutinized by the enquiry committee in order to submit its findings before the Commission, says a press release issued here on Tuesday. It said that
section 4 of the Act prohibits trade associations from taking decisions on commercial matters such as production, pricing and provision of goods and services. The enquiry committee has further been entrusted to review the policy framework in the CNG sector in order to identify policy distortions (if any) that are preventing, restricting or reducing competition in the market. The enquiry officers are required to submit their findings for consideration of the Commission within a period of 8 weeks. While the prices were being fixed by OGRA with the approval of Federal Government, it needs to be verified as to what is the role of CNG associations in negotiating a price with the Federal Government and OGRA on behalf of CNG stations. Furthermore, CCP
needs to verify whether the boycott is an individual decision of member undertakings or a collective withdrawal of services through associations to get their demands fulfilled; leading to the suspension of services from CNG stations. Closure of these stations has been witnessed across the country causing immense hardship to consumer. In light of negotiations on price fixing and withdrawal/suspension of services by various gas stations, leading to the current crises i.e. nonavailability of CNG to the general public, if it is proven that the crises is an outcome of any collective boycott organized by CNG associations or by competing undertakings (CNG licensees) for getting an economic advantage; which has resulted in output limitation placing pressure on other competitors, suppliers as well as buyers. Such conduct may fall within the purview of Section 4 of the Act. The CNG sector is an important part of the national economy with over 2.85 million vehicles using CNG. Approximately over 35% of all vehicles in Pakistan run on CNG. There are around 3300 CNG refuelling stations out of 20,000 gas fuelling station in the world (out of which approximately 17% are in Pakistan - a large number compared to the size and population of Pakistan vis-à-vis the world). The ‘Natural Gas Allocation and Management Policy’ places CNG fifth in the priority order for supply of natural gas and CNG sector takes approximately 9% of the total natural gas resource.
Forecasted Pakistan-Indonesia trade volume = $2bn KARACHI STAFF REPORT
President Karachi Chamber of Commerce and Industry (KCCI) Muhammad Haroon Agar Tuesday said the implementation of Pakistan-Indonesia Preferential Trade Agreement (PTA) would open new chapters of economic and commercial cooperation between the two countries. The KCCI believes that the PTA would bring closure the business communities of both countries and would give a strong boost to the bilateral trade ties. Pak-Indonesia bilateral trade could escalate up to $2 billion in coming years from the trade volume in year 2011 stood to around $ 1.2 billion. Indonesia would be able to increase its export of crude palm oil to Pakistan whereas Pakistan can export to Indonesia its value added textiles, carpets, fabrics, leather and export goods, chemicals, surgical etc. He also enlightened the Consul General about the key role of Karachi Chamber in the socioeconomic development of Pakistan and informed about the aims of KCCI to develop regional trade. He urged the Consul General to suggest and convince the Jakarta Chamber to form joint Chamber with KCCI on the pattern of Pakistan-Afghanistan Joint Chamber which KCCI formed last year. He extended invitation to Consul General to invite Indonesian Exhibitors in MyKarachi Exhibition 2013 and also organize a cultural event on that occasion. To further strengthen the relations and cooperation between Indonesian Consulate General in Karachi and Karachi Chamber of Commerce and Industry (KCCI), Indonesian consul General, Mr. Rossalis R. Adenan, on Tuesday, December4, 2012, made a visit to KCCI. The Consul General met the President of KCCI, Mr. Muhammad Haroon Agar who accompanied by other managing Committee members
of KCCI. The Indonesian Consul General on the occasion extended warmest and sincerest felicitation to Mr. Agar for his presidency of KCCI and hoped the relations and cooperation between KCCI and Indonesian Consulate General in Karachi would be further strengthened in the years ahead. He emphasized that Indonesia and Pakistan are brotherly countries that have been enjoying excellent and long-standing relations that have been transformed into a multifacet and mutually rewarding partnership encompassing all field of interests. He mentioned what the Indonesian Consulate General in Karachi has been carrying out in promoting bilateral economic, trade, social and cultural cooperation, including organizing Indonesian Products Solo Exhibition and Cultural Performance in Karachi and other cites in Sindh Province, such as Sukkur and Hyderabad, which he believes as an important contribution to increase the bilateral trade volume of the two countries. He reiterated the fact that Pakistan and Indonesia have some similarities and huge potentials, not only in economic and trade but also in socio-culture. The Indonesian Consul General shortly elaborated the development that has been achieved by Indonesia after its independence sixty seven years ago, characterized by remarkable progress and significant achievement in political, economic, social and cultural sectors. He said that Indonesia’s economy, which represents 40 percent of ASEAN’s aggregate economy,
is projected to grow by 6 to 6.5 per cent in 2012. According to the UNCTAD, Indonesia is one of the top ten most attractive FDI destinations in the 2010-2012 period. He further said that with the population of more than 240 million, 50 million of which are middle-class, Indonesia under the dynamic leadership of President Susilo Bamband Yudhoyono, has made steady progress at every front. He further mentioned that Indonesia’s economy has proven resilient to the global slowdown as it is driven by soaring in-
vestment and strong domestic consumption by its population of 240 million. He shared about Indonesian government economic policy which implementing, among others, prudent fiscal policy through efficient budget; increasing revenue from export; improving the quality of domestic economic infrastructure; fighting against corruption and strengthening law enforcement. He further explained that Indonesia’s economy is predicted to be better in the years ahead as it has, among others, stable economic growth in the last few years; less dependence on natural resources; and more that 60% of economic growth supported by productivity improvement. Touching upon the bilateral economic relations between Indonesia and Pakistan, he reiterated that the bilateral trade relations has been fluctuated but increased. In 2011, it is recorded US$ 1.2 billion which is still far below the real potentials. He also mentioned about the Preferential Trade Agreement (PTA) of the two countries that was signed in Jakarta in February 2012. He stated that Indonesia has already ratified the PTA on 19 November 2012 and hopefully that the two governments would soon decide the time for the PTA to enter into force. The Consul General also mentioned that during the D-8 Summit in Islamabad November 2012, the Indonesian Trade Minister met his Pakistani counterpart and discussed some bilateral issues, including the PTA which is hoped to be implemented soon and the common efforts to expand the scope of the bilateral Comprehensive Economic Partnership Agreement (CEPA) and to gradually decrease the bilateral trade barriers. By implementing the PTA, it is hoped that the bilateral volume would be doubled or redoubled in the near coming years.
No need to reschedule repayments of loans to IMF: NA body ISLAMABAD APP
The National Assembly Standing Committee on Finance and Economic Affairs was informed on Tuesday that there was no need for the government to reschedule repayments of loans to the International Monetary Fund (IMF). During a meeting of the committee, held with Khawaja Sohail Mansoor in the chair, the finance additional secretary said Pakistan could easily repay the loans to the IMF because the government had sufficient reserves available. He said of the $7.87 billion in loans taken from the IMF, Pakistan had already repaid $2.40 billion while $1.70 billion had still to be repaid in the current year. Regarding the imports of used cars, the committee was of the view that some ambiguities were found in the matter of imports of the three years used cars in the country. Besides, the Competition Commission of Pakistan (CCP) and the National Tariff Commission of Pakistan (NTC) were also working on the report in this regard and it would be revealed soon, the committee said. The committee chairman said the services of oversees Pakistanis could not forgotten because they were sending huge remittances to make the country financially stable. A member of the committee, Abdul Rashid Godil said if the incentives were to be announced for oversees Pakistanis, the remittances could be increased from $13 billion to $20 billion per year. However, it was told to the committee that the remittances of $47 billion had been recorded in the past five years.
PSO goes global g
Vies to become international energy firm, Senate body told KARACHI STAFF REPORT
Committee on Petroleum and Natural Resources headed by Senator Mohammad Yousaf visited PSO House Tuesday to review the performance and receive a briefing on the operational activities of the national energy giant. Speaking at the briefing, Naeem Yahya Mir, CEO and MD PSO, appreciated the senators’ visit saying being a national company it was important for PSO to take all steps to benefit Pakistan. The MD said it was his vision to establish PSO amongst the leading oil conglomerates of the world and the best company in Pakistan. He also apprised the visitors that as part of this plan, he wished to change PSO from a simple marketing and distribution company to a global energy company by developing an integrated supply chain which incorporates aspects of exploration, refining, transportation and shipping. Following the welcome note, company officials provided the elected representatives with an overview of the oil industry including the supply and demand situation for various POL products amongst different sectors. They also provided a brief synopsis of the oil pricing mechanism in place and the notification process for the same. The MD PSO followed this overview with some highlights of the recent initiatives and savings undertaken at PSO. This includes establishment of a refinery in Khyber Pakhtunwa and development of Corporate Social Pumps (2 in each province) and has also initiated the Street Sponsorship Program whereby 2 streets in low income areas of each province would be developed with state-ofthe-art facilities and infrastructure to enhance the living standards of the inhabitants of the area. He also said that the stories appearing in the media regarding the award of a fuel supply contract to Bakri trading without open tendering were baseless as this was the only company with blending facilities in Pakistan.