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Pakistan endeavors to achieve GSP Plus status in European Union in which the Dutch govt’s support is imperative. — KCCI President Haroon Agar KARACHI: Women are busy in embroidery during Textile Asia Exhibition at Expo Center. ONLINE
BUSINESS Sunday, 10 March, 2013
Chambers’ collaboration must to boost economic activities: ICCI
ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) Saturday stressed the need for developing collaboration among all chambers of commerce of the country to boost economic activities. “Unity of the nation in general and business and industrial community in particular is vital for socio-economic development,” ICCI President, Zafar Bakhtawari said while addressing a luncheon meeting in the honor of President Federation of Pakistan chambers of Commerce and Industry, Haji Fazal Qadir Khan Shirani. Bakhtawari also highlighted the need of bringing consistency in policies to make long term business strategies to attract investment and achieve better economic growth. Speaking on the occasion, Haji Fazal Qadir Khan Shirani said chambers and associations must strengthen the hands of FPCCI so that this apex business body could play more effective in resolving businessmen problems. He lauded the role of ICCI, especially for the development of young entrepreneurs and women empowerment. Among others, Shakeel Dingra, Vice President FPCCI, Zubair Tufail, Former Vice President FPCCI, Mirza Abdul Rehman, Vice President FPCCI, Munawar Mughal, Former President ICCI and Atta Bajwa were also present on the occasion. APP
ECC takes all decisions with consensus
Inefficient CPPs inflict Rs 70b loss annually on country: APCNGA ISLAMABAD
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he All Pakistan CNG Association (APCNGA) on Saturday questioned the policy of providing cheap gas to captive power plants (CPPs) to gain political favours which is causing a loss of Rs 70 billion to the public exchequer per annum. The technology, efficiency, cost, consumption, production, and other parameters related to the CPPs are questionable, as industry has been using scrap plants in place of modern and better equipment, said Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA. The average efficiency of 113 CPPs, mostly installed in textile units, stands at 28 per cent meaning that they are wasting 72 per cent of the gas in the process of generating electricity, he said while speaking to APCNGA’s central executive committee. Ghiyas Abdullah Paracha said that data of SSGC and SNGPL shows that CPPs are getting 454 mmcfd gas per day out of which 327 mmcfd is lost to inefficiency
GOVERNMENT IS PLEASING OWNERS OF CPPS AT THE COST OF DOMESTIC CONSUMERS, CNG, FERTILISER AND GENERAL INDUSTRY. MANY INDUSTRIES CLOSED SINCE LONG ARE BEING PROVIDED GAS WHILE THE POWER GENERATED THROUGH THAT GAS IS BEING SOLD TO RUNNING INDUSTRIAL UNITS WITHOUT APPROVAL FROM NEPRA WHICH MUST BE PROBED. causing loss of around 19 crore per day. Planning Commission and Ministry of Water and Power have termed primitive CPPs a major drain of indigenous hydrocarbon resources but to no avail, he said, adding that statements of crackdown against wasteful CPPs by ministry of petroleum is mere eyewash. he said that government is pleasing owners of CPPs on the cost of domestic
consumers, CNG, fertiliser and general industry. Many industries closed since long are being provided gas while the power generated through that gas is being sold to running industrial units with-
out approval from Nepra which must be probed, he demanded. he said that the silence of concerned departments on the issue is not only amaz-
APBF CEC opposes increase in withholding tax ISLAMABAD: Finance Minister Saleem Mandviwala said on Saturday that all the decisions during his presidentship of the Economic Coordination Committee (ECC) were taken with consensus. Talking to a group of senior journalists here at his office, Mandviwala said the ECC has referred the matter of LNG export to the federal cabinet which will take a decision in this regard. He said the Finance Ministry issues funds to ministries, not individuals. He said he had opposed subsidy for agricultural tube wells in the federal cabinet meeting but it was the decision of the government. He said the ECC approved the subsidy but this will increase the budget deficit. The minister said the government should have forex reserves of six months, but currently it has the forex reserves of three months. To a question, he said the Tax Amnesty Bill is likely to be passed by the National Assembly on Monday. INP
LAHORE INP
The All Pakistan Business Forum has opposed the decision of substantial raise in withholding tax on import of industrial raw material from one per cent to five per cent without talking business community into confidence and without realizing the trade imbalance of the country. Raising serious concerns on anti-industry and anti-export policy of the FBR, Central executive Committee meeting held here on Saturday, observed that authorities have taken short sighted decision at a time when trade deficit of the country has already crossed the figure of $ 21.27 billion in 2011-12 due to high imports of $ 44.92 billion against $ 23.64 low export. All Pakistan Business Forum CeC meeting, which was chaired by its chairman Syed Nabeel hashmi, was attended among others by APBF central president Rashid Mehr, central SVP Imtiaz Rastgar, Punjab president Asad Shuja-ur-Rehman, Sindh president
Shariq Suhail, FATA president Shah Faisal Afridi and KPK president Fahim Khan. The meeting urged the Federal Board of Revenue to withdraw anti-industry SROs, as on one hand, SRO 98(I) 2013 subjects industries to withholding tax of 20 per cent of sales tax payable on purchases, and on the other hand, SRO 140(I) 2013 increases withholding tax from 1 per cent to 5 per cent on imports of industrial raw materials. Addressing the meeting, Mr. hashmi said that export-oriented industry is already in shambles due to acute energy crisis coupled with impact of war on terror and the recent SROs will add further difficulties, creating liquidity problems for the exporters. he observed that manufacturers were already facing severe cash flow issues due to deduction of 3.5 per cent withholding tax on supplies to customers as well as withholding
ing but also criminal at a time when whole nation is reeling under power crisis. The country would not have faced energy shortages of such magnitude if decision were taken on merit and the gas allocated to CPPs was provided to efficient power houses, he said. Power generation companies are facing heavy losses as gas consumption as well as some 2000 mw load has been shifted to the unregulated gas gulping CPP sector which do not require a licence and have no performance and efficiency checks. The policy has hiked operation and maintenance cost of the Discos, average tariff is going up while average sale declines causing losses to the government while CPPs thrive on economical gas and support of petroleum ministry. Criticising the move to lower the efficiency benchmark for CPPs, Ghiyas Abdullah Paracha demanded a probe into the issue to fix responsibility on those who played havoc with the country for their personal welfare.
tax at imports. APBF chairman said that authorities should have done proper homework before issuing such policies. he further added the economic planners have never calculated the amount of money being paid on borrowings from IMF and other institutions in shape of interest and cost of technical assistance. After deduction of expenses and installments of previous loans the net transfer to Pakistan is most of the time in minus resulting into debt trap for the country. Central president Rashid Mehr talking to the CeC participants explained that all countries keep their export sector free of all taxes, direct or indirect. It is well known principal all over the world that any export item must shed all duties and taxes and logic of FBR to apply uniform rate of 5% withholding tax at import stage is myopic. Textile sector representatives said this measure would unnecessarily burden the textile exporters with Rs10 billion of refund claims, as textile industry annually imports cotton worth $1 billion and fibers worth $1 billion. highlighting auto sector condition, representatives said that the local auto industry is already at its lowest web as car sector’s production has declined by 30% in first half of the current fiscal year, while tractor industry is still trying to recover from last year’s recession. In this scenario, these new withholding taxes will leave no working capital for carrying on routine The CeC meeting unanimously asked the FBR to concentrate on expansion of tax base by bringing the undocumented sectors into the tax net, rather than squeezing the sectors which were already documented. The APBF leadership supported the chairman’s efforts to boost tax revenues, saying the business community would do it best to help the board in collection of taxes.
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I had opposed subsidy for agricultural tube wells in the federal cabinet meeting but the government decided to go ahead with its decision. — Finance Minister Saleem Mandviwalla
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China offers great opportunities in stone, marble sector: envoy BEIJING
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he stone and marble sector offers tremendous opportunities to Pakistani businessmen as China is a huge market keeping in view its spectacular infrastructure development, said Ambassador Masood Khalid. The Ambassador expressed these view while observing the Increased participation of Pakistani traders in a recently held international stone fair. A total of 10 Pakistanis entrepreneurs participated in the 13th Xiamen International Stone Fair held from March 6-9. Last year, five companies from Pakistan took part in the event. This year, one company participated on its own. The products displayed were granite and onyx, blocks & slabs, marble handicrafts and gemstones. “Participation of our companies in such fairs would contribute in strengthening economic relations between Pakistan and China and boost bilateral trade among the two countries” Ambassador Khalid noted. Ambassador Masood Khalid said
that Pakistan is blessed with one of the largest marble and granite reserves. Pakistan’s participation presented an opportunity to our exhibitors to display their products to the rest of the world he said adding that China, because of its close proximity to Pakistan, and the excellent relations between the two countries is an ideal market in this regard.
The booths for the fair were booked by the Trade Development Authority of Pakistan (TDAP) with the support of the embassy of Pakistan, Beijing. The Xiamen Stone Fair is the world’s largest stone exhibition which attracts a number of international and
local companies. The Fair has over the years grown in stature and is now considered as a key international trade event.
Participation of our companies in trade fairs would contribute in strengthening economic relations between Pakistan and China and boost bilateral trade among the two countries. It offers an opportunity for the stone industry to showcase their products and build new partnerships. This year around 2,000 of the world’s lead-
ing suppliers and manufacturers participated in the event. Xiamen is the hub of stone business in China. According to the available data, Xiamen has become the world’s largest stone trading center with transaction volume representing over 60% in China and 15% around the world. China is one the major importers of Pakistani marble. Similarly, China also imports granite, basalt and sandstone from Pakistan. The Pakistan companies attracted a lot of attention at the event. The exhibitors were of the opinion that participation in such fairs would boost their business and help establish new contacts which would also be beneficial to the economy of Pakistan. They expressed hope that companies from Pakistan can attend such events in future also with the help of the government of Pakistan. Ms. Roubina Taufiq Shah represented Trade Development Authority of Pakistan at the event and visited the stalls to encourage the exhibitors and ascertain the response of the local and international companies for their products.
KCCI chief welcomes Netherlands’ paradigm shift of trade with Pakistan KARACHI APP
President Karachi Chamber of Commerce and Industry (KCCI) Muhammad haroon Agar has welcomed the paradigm policy-shift to focus on trade with Pakistan in contrast to its policy of development aid. haroon Agar said the new policy of Netherlands will multiply the reciprocal trade volume between two friendly countries. he said Pakistan endeavours to achieve GSP Plus status in european Union in which the Dutch Government’s support is imperative. According to a KCCI statement here on Saturday the Chamber chief while exchanging views with First Secretary/ head of economic Affairs, embassy of the Kingdom of the Netherlands, Robert Dresen, at a meeting stated that Pakistan and Netherlands enjoy deep friendly relations and have common views on international and regional issues. The Netherlands, haroon Agar said helped Pakistan in various social and educational projects, however, the business community appreciates the Dutch policy-shift from aid to trade, which has been aspired by KCCI for long. It will act as a cornerstone to promote entrepreneurship
development in Pakistan. he pointed out that in 1982, Pakistan and the Netherlands had signed a bilateral Double Taxation Agreement, to promote business activities in both the countries. Pakistan is the 6th largest non-european economic partner and world’s 13th largest economic and trading partner of the Netherlands, he said. Pakistan and the Netherlands established bilateral relations soon after the independence of Pakistan. Netherlands is among top five investors in Pakistan and had invested about US$ 8 million till 2012. There is huge potential of enhancing Pakistani exports of textile, mangoes, rice and other products to Netherlands. Pakistan imports boilers, organic chemicals, plastic and its articles, iron and
steel products, technical and medical equipment etc. Serious efforts are required to enhance bilateral trade. exchange of business delegations, participation in exhibitions, exchange of trade information is vital, the KCCI said. Geographical both the countries enjoy an important location and can act as a gateway for trade to many countries. Joint efforts are required to benefit from this edge. The statement said haroon Agar also opined that The Royal Dutch Airlines (KLM) may resume its operations in Pakistan. KCCI can sign MoU with Amsterdam Chamber of Commerce for mutual cooperation, haroon Agar said. he also invited Dutch exhibitors to participate in KCCI annual `My-Karachi, Oasis of harmony’ exhibition scheduled to be held in July 2013 which is a showcase and B2B & B2C platform wherein local and foreign exhibitors participate.
Govt should not accept pressure on IP gas pipeline project: FCCI president FAISALABAD: Iran-Pakistan (IP) Gas pipeline is very crucial for economic growth of the country, and the Government need not to accept any pressure, said Mian Zahid Aslam, President, Faisalabad Chamber of Commerce and Industry (FCCI) here on Saturday. He appreciated the signing of the project and hoped that the gas shortage would be overcome to a greater extent with the commencement of supplies as planned. Quoting on future shortage of gas he said, Pakistan will face shortfall of gas to 1445 mmcfd in the year 2013-14 against demand of 3638 mmcfd. There would be increased shortfall of 1872 mmcfd in 2014-15. He said that IP Gas Pipeline would usher in further prospects of investment opportunities and closer economic ties in the area. He continued that Pakistan should take benefit of the gas resources available with Iran to meet its energy needs and overcome the looming energy crisis. The FCCI President said that natural gas is the basic raw material in use by the industries and clean fuel for domestic needs and there is no alternative fuel available of comparative cost. He said that GDP growth of the economy has lowered down to the extent of 2-3 percent per annum owing to the severe shortage of gas and electricity retarding the industrial and business activities in the country. Chamber Chief further said that the industrial sector particularly the textile sector which is the largest contributor in the national exports and the largest provider of employment in the country needs special attention of the Government. He urged that SRO culture needs to be discouraged as it is hampering the industrial and business activities badly. Frequent Issuance of SROs by Federal Board of Revenue (FBR) is never acceptable as it deteriorates the industrial planning and production cost unfeasible. He urged the Government to withdraw SRO 154(1)/2013 and SRO 98(1)2013 immediately as these SROs have been issued without consultation with the business community The business community is completely in a fix with the issuance of such SROs causing seriously to choke the industrial and business activities particularly for textile sector. INP
CORPORATE CORNER
Millennials share with community ISLAMABAD: The students from Roots Millennium Schools, Millennium Campus I-9/3, Islamabad visited Kalyal Public School as part of the “social responsibility by empowering public private partnership venture. They were accompanied by their subject teacher and a representative Changein Education which is a social sector initiative of Roots Millennium Schools, Pakistan. The Millennials conducted various activities including drawing and colouring, Chinese whispers,
ISLAMABAD: Ten Sports arranged screening of UEFA Match - Manchester United vs Real Madrid at Cafe Costa Lahore, Cafe Le Grande Karachi, Nishtar Medical College Multan and Kuch Khaas Cultural Center Islamabad. PR
LAHORE: Azfar Hasan, CEO Matrix Sourcing, Umer Lodhi, Director Metro, students and faculty members at a seminar on international marketing at The Lahore School of Economics. PR
general knowledge, hide the flag, and a couple of quick competitions. The visitors were pleasantly surprised to discover that the children at the school
could easily comprehend instructions in English and most of them surpassed their intellectual expectations, which is a direct consequence of the
investment in the school by the management of Change in Education, who have adopted the school since 2011. PRESS RELEASE