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Wednesday, 10 October, 2012
Neighborly love in flight Indian airline to operate in Pakistan in due course, trade HCP in New Delhi tells KCCI g Pakistani businessmen want Karachi-Mumbai connected via sea, air links g Air India flights to Pakistan in due course g Private Indian airlines keen to start operations g Negative list to go by December 2012 g Current 800 tariff lines of SAFTA to be cut to 100 tariff lines in April 2013 g Pakistan considering to allowing all tradable items through Wagah g Textiles, agri based and agro processed products eyed as potential Pakistani exports to India g Businessmen categorized as small, big ones under new visa policy g
KARACHI ISMAIL DILAWAR
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NDIAN airlines, led by the Air India, would soon be starting flights to and from Pakistan as the two countries have achieved new milestones on the trade liberalization front in recent months. Also, Pakistani traders and industrialists want New Delhi and Islamabad to connect Mumbai with Karachi through air and sea links as businesspersons on this side of the Line of Control were serious to import from India what they have been importing from China and other countries. “Consequent to the commerce-secretary-level talks between India and Pakistan, air connections between the two neighbors would be increased,” said Naeem Anwar, Minister (Trade) High Commission of Pakistan in New Delhi, who visited the Karachi Chamber of Commerce and Industry (KCCI) on Tuesday. Linking air frequency to visa issuance, the minister said since the policy was being liberalized, Air India would be starting flights to Pakistan in due course. While private Indian airlines had also shown interest to start operations in Pakistan, he added. Minister (Trade) Pakistan High Commission in New Delhi Naeem Anwer, while exchanging views at KCCI, recognized the vibrant role of KCCI and industrial activities and for socio-economic development of Pakistan. Highlighting latest developments by Indo-Pak governments on bilateral relations, he said the two governments had prioritized the opening of banks branches across the border by March 2013. The National Bank of Pakistan and United Bank would open branches in India while branches State Bank of India, Bank of India and Punjab National Bank would open branches in Pakistan. New Delhi has allowed Pakistani investment in India through Indian Board of Investment Promotion. Investors across the LoC were keen to invest in this regard, said Naeem. He said the Secretary Commerce had instructed him to brief the country’s chambers of commerce about the latest developments on bilateral trade. He said the negative list would be abolished by December 2012 and in April 2013 current 800 tariff lines of SAFTA would also reduce to 100 tariff lines. Also, by year 2017 SAFTA sensitive list would be reduced to 100 items. The government of Pakistan was also considering to allowing all tradable items through Wagah, he said adding recently three agreements were signed by the two governments on customs cooperation, mutual recognition and redressal of grievances that would be implemented after completion of all legal formalities. He said according to new visa policy, business visa for small category businessmen having net income of five to 30 lacs would be given one year visa of five cities by four multiple entries with po-
lice reporting. For big category businessmen having net income beyond 30 lacs would be given one year visa of 10 cities by multiple entries with exemption of police reporting. The authority to verify income was under consideration. Naeem said that potential Pakistani products for export to India were textiles (home textiles, fabric), agricultural based products and agro processed products. Urging the manufacturers to capture their share of Indian markets, the minister said Islamabad had urged to rationalize tariffs of products which are on higher sides. Information on tariffs was available online on various Indian websites, he added. Consequent to talks of Indo-Pak commerce secretaries, air connections would be increased. Linking air frequency to visa issuance, Naeem said since the policy was being liberalized, Air India would be starting flights to Pakistan in due course, while private Indian airlines had also shown interest to start operations in Pakistan. He also sought proposals from KCCI to identify products, logistics data, warehousing facilitates, information on required infrastructure with regards to trade from Khokrapar Monabao border which was under consideration by two governments. He informed that in India the role of chambers had transformed and they were less dependent on subscription and were generating income in billions of rupees from exhibitions, fairs and event management. He urged the chambers of commerce in Pakistan to focus on research and development which Pakistani chambers were lacking as compared to their Indian counterparts. Naeem also elaborated on the role of National Tariff Commission and educated the members of KCCI to opt for legal formalities in case of anti-
dumping or injury to domestic industry. He said India was offering huge subsidies for exportable items, therefore, Pakistani business community should be cautious of influx of Indian goods keeping in view viability and price competitiveness of identical domestic items. He also asked the KCCI members to study the Indian models of business joint ventures if they were interested for same with Indian counterparts. The minister also assured support from Pakistan High Commission in New Delhi on policy matters. One Indian company offered Karachi Metropolitan Corporation produce 8MW energy by processing the solid waste here at Karachi, he said. Earlier in his welcome address, President KCCI Muhammad Haroon Agar said fostering the process of regional trade and economic cooperation between the two countries would augur well for peace and prosperity in the South Asian region. The KCCI chief said it was the need of the hour that both governments, besides opening new land routes, should positively consider to connect Mumbai with Karachi through air and sea links. He said Pakistani businesspersons were serious to import from India instead of China and other countries located outside the South Asian region. Agar also urged to formalize the informal trade which is higher than formal trade of $2.7 billion achieved in year 2011. Anjum Nisar, former KCCI President, stressed the need for successful branding of logos “Made in Pakistan” in India and capturing its potential market. Majyd Aziz, another ex-president of KCCI, said there should be no discrimination of categories of small or big businessmen with regard to issuance of visas. He also urged the need for opening KhokraparMonabao route for trade purposes.
Not enough ATMs, we’re afraid… SBP says availability of ATMs “quite low” in country KARACHI STAFF REPORT
The central bank Tuesday expressed its concern over the availability of Automatic Teller Machines (ATMs) in the country that the regulator said was “quite low”. “There are only 5600 ATMs in the country,” Deputy Governor State Bank of Pakistan (SBP) Kazi Abdul Muktadir told journalists during his visit to Karachi Press Club. He also inaugurated at the KPC an ATM which was installed by the Summit Bank. Flanked by Acting President Summit Bank Asif Ali, President KPC Tahir Hasan Khan, General Secretary Moosa Kaleem and Treasurer Rizwan Bhatti, the deputy governor said presently there were about one ATM against two bank branches while in developed countries, there were three ATMs against one bank branch. The SBP has recently issued policy instructions to all banks which bind them to expand their ATM network in a phased manner so as to achieve a target level of one ATM for each bank branch.
“Once this target is achieved, we have plans to gradually raise the bar so as to meet the international levels,” he said. The deputy governor also expressed his resolve to provide banking services to all segments of the society. “With the concerted efforts of all, we will be able to achieve the desired goal of ‘Banking for All’,” he said. Emphasizing the need for an efficient and thriving banking system, he said that the State Bank was providing regulatory environment to financial institutions to enhance financial inclusion in the country. “Providing people with access to finance is a challenging task, not just for the central bank but also for all the stakeholders,” he observed. The central bank, he said, was trying to make the banking services available at the door step of the people and that promoting access to banking services was the corner stone of SBP’s policy framework. He said the State Bank under its Branch Licensing Policy had made it compulsory for the banks to open at least 20 percent of their new branches in rural and under-
served areas. The deputy governor said branchless banking was helping in reaching out to the low income, unbanked people through more than 30,000 access points throughout the country. Nearly 30 million transactions worth Rs 115 billion had been processed during the fourth quarter of FY12 through branchless banking and the average daily transactions had been reported at 315,178 while the total number of branchless banking accounts had increased to 1.7 million. “According to the World Bank’s Consultative Group to Assist the Poor (CGAP), Pakistan is the fastest growing branchless banking market in the world,” said he. Abdul Muktadir said the banking industry of Pakistan had tremendous growth potential to deliver lot more than what it was delivering right now. “The significance of e-banking and m-commerce cannot be
Pakistan-Afghanistan trade balance reaches $1.5b KABUL ONLINE
Balance of trade between Afghanistan and Pakistan has reached one and a half billion US dollars. This was revealed by Khanjan Alekozai deputy chairman of the chambers of commerce and industries of Afghanistan and deputy head of joint chambers of Afghanistan and Pakistan in a joint meeting of the Afghan and Pakistan traders held in Kabul, reported BNA news agency. The aim of the meeting was to seek ways for overcoming the problems of traders’ further expansion of trade and economic relations between Afghanistan and Pakistan. At the start of the meeting Khanjan Alekozai deputy chairman of the chambers of commerce and industries of Afghanistan and deputy head of joint chambers of Afghanistan and Pakistan said that the balance of trade between Afghanistan and Pakistan reaches one and half billion US dollars, the major portion of which is import of Pakistan goods to Afghanistan and Afghanistan’s exports makes around USD 200 million. Zabeer Motiwal head of the delegation and chairman of the chambers of commerce of Pakistan talked of the trade facilities for foreign investments in Afghanistan and added that the Pakistan traders and investors are prepared to jointly and individually invest in Afghanistan. He added that the present problems in trade sphere can be resolved by the government authorities.
Chopped! (again) IMF cuts global growth forecast; prods Europe, US TOKYO AGENCIES
The IMF cut its global growth forecast on Tuesday for the second time since April and warned U.S. and European policymakers that failure to fix their economic ills would prolong the slump. Global growth is too weak to bring down unemployment and what little momentum exists is coming primarily from central banks, the International Monetary Fund said in its World Economic Outlook, released ahead of its twice-yearly meeting, which will be held in Tokyo later this week. “A key issue is whether the global economy is just hitting another bout of turbulence in what was always expected to be a slow and bumpy recovery or whether the current slowdown has a more lasting component,” it said. “The answer depends on whether European and U.S. policymakers deal proactively with their major short-term economic challenges.” For 2012, the IMF now expects global output to grow just 3.3 percent, down from its July estimate of 3.5 percent, making it the slowest year of growth since 2009. It predicted only a modest pickup next year to 3.6 percent, below its July estimate of 3.9 percent. overemphasized because of the fact that both have brought about remarkable changes in the ways people think and do their banking business today.” He said the transformation from traditional to modern ways of banking was taking place at a fast pace. A number of alternate delivery channels for provision of banking services like ATMs, Credit Cards, POS terminals, Internet banking, Debit Cards were already existed in Pakistan to benefit the masses. “Currently, 93 percent of the total bank branches are offering Real-Time Online services,” he said. Earlier, Summit Bank Acting President Asif Ali said his bank was planning to add more services like the cash deposit and cheque deposit to its current ATM network. He said the “technology savvy” Summit Bank was operating 168 online bank branches countrywide to advantage its valuable customers. “We are further improving our services through ATMs,” said Ali, who was officiating in place of Hussain Lawai, the chief executive and president of Summit Bank who was presently abroad. President KPC Tahir Hasan Khan also expressed his gratitude towards Lawai who he said had always been cooperative towards the journalist fraternity. Khan also announced life membership of the KPC for Lawai.