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Sunday, 15 July, 2012
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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.
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Sunday, 15 July, 2012
Asia cannot be ignored ISLAMABAD ONLINE
Asia has a growing stake in the global economy and the global economy has a growing stake in Asia,” says International Monetary Fund (IMF) Managing Director Christine Lagarde said on the last leg of a three-country Asian trip. “Asia is a linchpin for global economic stability and is being heard, both through its growing stature in the global economy, and also in the corridors of the Fund,” she said. Her remarks came at the end of a weekand-a-half long trip which took the IMF head to Japan, Indonesia and Thailand where she met with top officials, women leaders, and also held a town hall discussion with Japanese students. Dynamic Asia Lagarde reflected on her impressions of the region following this, her third trip to Asia since becoming IMF Managing Director a year ago. “Asia does not stand still—it is constantly reshaping itself and each time I am here, I see a new, improved, upgraded version,” she said. The IMF chief said Asia’s stronger bank balance sheets and fiscal positions had allowed the region to avoid the downward spiral of debt and weak banks that is threatening Europe. But Lagarde warned that the repercussions of the European debt crisis remained a threat. The main near-term challenge for policymakers across Asia was to decide how far to loosen policies in support of growth, she said. At the same time, they needed to continue encouraging domestic investment and consumption to promote growth. “Asia’s economies are central to global economic stability, and the region has emerged from the global crisis with its economic standing enhanced,” she added.
Business 02
Pakistan, india
Major Gainers ComPany Rafhan Maize Prod. Colgate Palmolive Nestle Pakistan Ltd. Sanofi-Aventis Pak ICI Pakistan
discuss parameters to ‘pump up’ petroleum trade
oPen 3200.00 1202.88 4104.00 184.50 131.07
HigH 3359.89 1239.99 4149.00 193.70 137.62
Low 3224.00 1200.00 4050.01 185.00 137.62
CLose 3327.73 1239.95 4135.00 193.22 137.62
CHange turnover 127.73 172 37.07 246 31.00 27 8.72 1,931 6.55 6,689
Major Losers UniLever Pak Siemens Pakistan Akzo Nobel Pak. Millat Tractors Engro Foods Ltd.
7213.50 680.40 131.07 491.97 69.86
7200.00 680.00 124.52 494.00 70.34
7110.00 665.00 124.52 475.00 66.37
7110.00 666.57 124.52 486.91 66.50
-103.50 23 -13.83 1,183 -6.55 563 -5.06 15,576 -3.36 6,398,960
Volume Leaders D.G.K.Cement Fauji Fert Bin Fatima Fertilizer Co Engro Foods Ltd. NIB Bank Limited
43.06 40.60 25.09 69.86 2.19
44.30 40.80 25.34 70.34 2.35
43.07 38.61 24.85 66.37 2.15
43.49 38.72 25.00 66.50 2.32
0.43 24,177,207 -1.88 10,554,509 -0.09 7,423,303 -3.36 6,398,960 0.13 6,104,879
Interbank Rates US Dollar UK Pound Japanese Yen Euro
94.3568 145.7530 1.1906 115.1342
Dollar East NEW DELHI
I
ONLINE
n an attempt to give a big push to trade in petroleum products, both India and Pakistan have decided to take up a focused approach on the issue of identifying possible supply routes rail, road, pipeline and sea source and point of supply for petroleum products, regulatory framework, enhancement of direct banking and postal services between the two nations. The two sides have decided to chalk out a road map to take the talks further in a focused manner. The Pakistan side has been invited by the India to visit New Delhi this month-end to work out in detail all parameters for giving petroleum trade a new direction in the interests of both the countries, reported PTI. In the previous round of talks held in Islamabad last month, the Indian side was led by Petroleum Ministry’s Director (IC) P. Kalyansundaram. The Pakistan side was led by Ministry of Petroleum and Natural Resource’s Joint Secretary Shabbir Ahmad. The Indian side offered range of petroleum products including pet coke, sulphur, bitumen, lubricants
as per quality requirements of Pakistan side. It was decided that before the commencement of formal trade in petroleum products between the two countries, harmonisation and recognition of standards/procedures and regulatory framework in vogue need to be examined in detail. Both sides felt that banking services should be enhanced to facilitate business through letters of credit; direct routing of postal/courier services was also discussed. It was felt that SAPTA certificate recognition system be made online; multi-city and multiple entry nonreporting visas for businessmen on both sides should be introduced and warehousing and tankage facilities with infrastructure facilities like cranes, fork lifts and other machinery should be set up at the Wagah border. The meeting also discussed the possibility of import of petroleum, oil and lubricant (POL) products from India and specifications for furnace oil, diesel, Jet-I and petrol. The Pakistan side sought to know the capacity and supply position of Indian side for exports to Pakistan. The possibility of movement of petroleum products from the rail, road, lying of new pipelines and sea was also discussed along with sustainability of supplies.
US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
Buy
seLL
94.50 115.34 146.76 1.1859 92.81 12.01 25.66 25.16 96.13
95.10 116.37 148.08 1.1965 94.76 12.18 25.91 25.36 97.30
Conference on ‘doing Business with Pakistan’ HOUSTON: A Conference on "Doing Business with Pakistan" was held at the Federal Reserve, in downtown Houston on July 12. The objective was to motivate the Texas business community about potential, benefits and opportunities of business with Pakistan. The key note speakers were Muhammad Aqil Nadeem, the Consul General of Pakistan and Ed Emmett, the Harris County Judge. PRESS RELEASE
CORPORATE CORNER etihad announces flights to nigeria
ISLAmAbAd: PTCL President / CEO mr. Walid Irshaid presenting Exceptional Performance awards to EVP Wire-line business, Aasif Inam (left) and EVP International business, muhammad Imran Ali (Right) at the occasion of PTCL Way forward 2012.
mobilink super engineer Competition LAHORE Mobilink announced the results of the ‘Mobilink Super Engineer Competition 2012’, which is an inter-university competition involving teams of students from the leading engineering universities of Pakistan, in which the students attempted real-life engineering projects, assigned by the Mobilink Technical Team. The winning team was presented with an award titled “Mobilink Super Engineer 2012”, while the 1st and 2nd runners up teams also received recognition from senior management. Only winning team gets internship and job interview confirmation. Each of these students will get an opportunity for a job interview at Mobilink. PRESS RELEASE
LAHORE: Etihad Airways, the national airline of the United Arab Emirates, recently announced its 6 flights a week service between the airline’s Abu Dhabi home-base and the Nigerian city, Lagos. The six flights per week Lagos will be operated by an A330-200 aircraft, configured to carry 22 passengers in Pearl Business class and 240 passengers Coral Economy class. PRESS RELEASE
vocational facilities of the Program to the people of FATA and Balochistan. PRESS RELEASE
Bahria dastarkhawan all set to serve at iftar
various offices of Bahria Town as well. This is keeping in lieu with the decade old ritual of serving the poor and under-privileged class of the society with quality and healthy meals at Bahria Dastarkhawans nationwide. The management of Bahria Dastarkhawan is eager to serve their fellow men wholeheartedly. PRESS RELEASE
air university holds convocaton ceremony
Fata and Balochistan receive soft hand from Zardari
ISLAMABAD: Farzana Raja, Federal Minister for Benazir Income Support Programme, calls on President Asif Ali Zardari at presidency. The President directed Chairperson BISP to especially focus on providing educational and
ISLAmAbAd: Shell Pakistan conducted its TIdE program at bahria University Islamabad to promote the social enterprise development, bridge the gap between industry and academia and equip students with skills, essential to professional excellence and leadership.
RAwALpINDI/ LAHORE: Bahria Dastarkhawan is all set and looking forward to serve thousands of its guests in the up-coming Ramazan. Special menus and arrangements are made and in addition to the regular dastarkhawans, additional dastarkhawan will be set up nationwide including
ISLAMABAD: The third convocation ceremony of the Air University was held at Jinnah Convention Centre, Islamabad on Saturday. Air Chief Marshal Tahir Rafique Butt, Chief of the Air Staff, Pakistan Air Force who is also Chairman Board of Governors of the Air University was the Chief Guest on the occasion. Bachelors and Masters Degrees of various educational disciplines in engineering and administration programs were conferred upon 595 students. The Chief Guest awarded 26 Gold and 19 silver medals to the position holders. PRESS RELEASE
LAhORE: mian Amer mahmood, Chairman Punjab group of colleges and Resource Academia and Prof. Sohail Afzal, Executive director with NWAs on mOU award ceremony of Resource Academia System for International Education.