PRO 15-07-2012_Layout 1 7/15/2012 5:12 AM Page 1
Sunday, 15 July, 2012
Sorry
Counsul general offers increasing trade to $ 10b
brother Pakistan, your wheat’s
KARACHI
bad quality: Iran ISLAMABAD
W
ONLINE
HILE citing reservations over Pakistani’s wheat quality, Iran has finally rebuffed to import one million tonnes wheat from Pakistan under a barter trade deal, said reliable sources. According to sources familiar with the development told that Iran has conveyed to Pakistani authorities that it can only buy wheat with zero per cent karnal bunt content while Pakistani wheat is of 3 per cent content which is not acceptable for Iran. “Iran has not officially conveyed Pakistani authorities so far about its refusal to import one million tonnes wheat under barter trade arrangements,” said an official working in Ministry of National Food Security and Research. “Ministry of National Food Security and Research has been regularly contacting the Iranian authorities to finalise the modalities for exporting one million tonnes of wheat to Iran,” said an official, adding that Pakistan has not received any response from Iranian side so far to complete the deal which was earlier agreed to be finalized till May 14, 2014. Finalisation of Pakistan and Iran barter trade deal had already been facing delay as Iranian authorities showed disinterest in importing wheat from Pakistan. Earlier the matter could not be resolved in meeting of the Economic Coordination Committee (ECC) of the Cabinet because Pakistan Agriculture Storage
Refuses to import wheat from Pakistan Supplies Corporation (PASSCO) wanted to export wheat at the price of $315 per tonne then the ECC had constituted a sub- committee under the chair of then Federal Minister for Water and Power Syed Naveed Qamar to resolve the issue. In the sub-committee meeting held on May 5, 2012 the committee was of the view that wheat should be exported according to the international price. But later, the committee agreed to export the wheat at the price o f $275 p e r tonne. In the meeting of sub-committee Naveed Qamar had asked PASSCO to finalise the deal on the basis of talks held at Tehran between Pakistani and Iranian authorities in April this year. In the meeting it had been decided in principle that one million tonnes of surplus wheat from PASSCO stocks and rice will be exported to Iran on barter trade
FBR to try harder to get money back from defaulters LAHORE ONLINE
The Lahore Chamber of Commerce and Industry (LCCI) President Irfan Qaiser Sheikh has said that the new FBR Chairman would have to take special measures to expedite the refund cases pending with the Board for a long time. In a letter to the new FBR Chairman, the LCCI President Irfan Qaiser Sheikh said that the business community has attached very hopes with Ali
NNI
Arshad Hakeem because of his excellent performance as Chairman National Database Registration Authority (NADRA). He said FBR blocked huge cash flow of the business community already perturbed due to serious energy crisis. The LCCI President said that the New Chairman would have to utilize his best abilities to facilitate the businessmen who are generating revenues for the government despite all odds. The LCCI President said that the new
arrangement. At that time Iran has expressed its desire to import both the items from Pakistan and in exchange urea will be imported from there.
Chairman has big responsibility on his shoulders as the in the budget 2012-13 the revenue target has been enhanced. He said that like previous year the business community would continue to support the FBR revenue collection drive but the Chairman would have to focus on the expansion of tax net as there area number of sectors that are still out of net despite earning handsome revenues. The LCCI President said that a number of businessmen had brought to the LCCI notice many issues that need an early attention of the FBR Chairman. Irfan Qaiser Sheikh also urged the FBR Chairman to take steps to expedite liaison with the business community that has always supported the Federal Board of Revenue in every thick and thin.
Make LNG import transparent! ISLAMABAD ONLINE
The Pakistan Economy Watch (PEW) on Saturday said government is planning to buy LNG on inflated rates under the garb of resolving energy crisis. All rules and regulations are being relaxed for the import of 500 million cubic feet of LNG per day under a long-term contract, it said. If the deal to import LNG from Qatar is finalised, Pakistan will have to pay some five million dollars daily for fifteen years while some influential politicians will get Rs 400 billion in kickbacks, said PEW, SVP, Abdullah Tariq. Secretary Petroleum Mr. Muhammad Ejaz Chaudhry has been fired for resisting the deal while efforts are underway to penalise Oil Gas Regulatory Authority (Ogra), another opponent of the LNG import on hefty price, he added. Tariq said Qatar seems to be the only option as a vessel from Doha takes 36 hours to reach Karachi, gas transportation from Malaysia take 14 days while it will take one month from Algeria. It may be mentioned that apart from Ogra the power companies and private sector has also opposed the import of costly LNG while the government is yet to consider using cheap alternative of Thar coal. End consumers will have to brave over 200 per cent hike in the price of gas in case deal is nailed down.
Pak-Iran relations are deeply rooted in the history and heritage, common culture and shared traditions. Geographical proximity linking their security interests, gives added depth and meaning to bilateral ties stated by Federation of Pakistan Chambers of Commerce and Industry (FPCCI), President, Haji Fazal Kadir Khan Sherani while talking to visiting Iranian Consul General at Federation House Karachi. Iran, Consul General, Mr. Abbas Ali Abdollahi visited FPCCI to share bilateral relations between the two countries. Haji Fazal Kadir Khan Sherani said that Pakistan and Iran have always maintained a close cooperative relationship. Both countries are amongst the founding members of ECO & OIC, he said. “The Iranian Government has pledge $ 330 million through the Friends of Democratic Pakistan (FoDP) Initiative. Pakistan and Iran have implemented PTA in 2006; however, the current volume of bilateral trade between the two countries is not reflective of the true potentials of the two countries. Current volume of bilateral trade is US $ 265 million approximately during 2011. Pakistan’s exports to Iran during the same period are US $ 136 million while imports are $ 129 million. New items in present PTA should be included and increase extent of concession on some items already in the PTA. Both countries should enhance trade promotion activities under the existing Preferential Trade Agreement”, he said. Sherani also emphasized the harmonisation between the rules and regulations of the two countries required to determine the balanced strategies regarding trade cooperation. He further added that Iran-Pakistan Gas Pipeline between energy deficient Pakistan and energy rich Iran is a feasible and doable project. Visa for businessmen on the recommendation of Chambers should be issued immediately and also establishment of separate counters for business visa also proposed by the President FPCCI. Iran, Consul General, Mr. Abbas Ali Abdollahi said that Iran and Pakistan can increase trade up to 10 billion dollar.
ICCI suggests decrease in interest rates ISLAMABAD ONLINE
The government should reduce the high banking spread and bring down the mark up rates to encourage savings, investment and easy credit facility for growth of business activities. This was stated by Islamabad Chamber of Commerce and Industry (ICCI), President, Yassar Sakhi Butt in a statement issued here on Saturday. He said high banking spread in Pakistan is one of the major causes of low savings, dwindling investment and sluggish business growth in Pakistan. He said that banking spread in Pakistan was more than 7 percent which was one of the highest while it was 3 percent in USA, 1.7 percent in Japan, 4 percent in India, 4.4 percent in Sir Lanka and 5.5 percent in Nepal and demanded that the State Bank of Pakistan must direct commercial banks to narrow down the gap between lending and deposit rates for providing better returns to the depositors and encouraging savings. ICCI President said that the banking sector was earning significant mark-up income on the basis of high spreads and high interest rates, which was not a wise approach to facilitate the growth of private sector in the country. He said that banks should reinvest the
depositor’s money in private sector's development and business activities rather than investing it in zero risk government securities. Yassar Sakhi Butt said that the high interest rate was pushing up cost of doing business in Pakistan and was also discouraging new investment as investors are very sensitive to the movement in interest rates. In such circumstances, the increased cost of production would make our products more uncompetitive both in national and international markets, he maintained. He said that Pakistan was witnessing a sharp decline in private sector investment and it was the high time that SBP should change its tight monetary policy approach and reduce key policy discount rate to encourage the private sector investment and growth of business activities. ICCI President also criticised the heavy borrowing approach of the Government from the banking sector, which was crowding out the private sector from credit facility. He stressed that instead of resorting to heavy borrowing from banks to reduce fiscal deficit, Government should take measures to expand the tax base by bringing untaxed sectors of economy into the tax net, which was the right approach to generate more revenue and overcome the fiscal deficit.