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The government should not introduce any economic policy without due consultation with the stakeholders. — LCCI President Farooq Iftikhar
buSINeSS Sunday, 17 March, 2013
KP governor vows setting up of industrial estate in Darra Adamkhel
LAHORE: European Union Ambassador Lars-Gunnar Wigemark, Punjab Board of Investment and Trade (PBIT) CEO Javed Akbar and heads of several other authorities hold a meeting on Saturday. NNI PESHAWAR: Khyber Pakhtunkhwa Governor Engr Shaukatullah on Saturday formally launched natural gas project, costing Rs.76.468 at Darra Adam Khal in F.R. Kohat on Saturday and has also declared to establish an industrial estate in the area. The 17 kilometer long main pipeline laying project for supply of natural gas on completion within next couple of months will offer 50 connections for commercial purposes besides providing 3,500 domestic links to a population of about 45,000 of the area. He also announced to expedite efforts for establishment of a grid station, besides exploring possibility for launching socio-economic uplift project in the area which also included up-gradation of a historic high school at Zarghunkhel, working since prepartition era. Principal Secretary to Governor Muhammad Abid Majeed, Secretary Social Sector, FATA, Aftab Akbar Durrani, Commissioner Kohat, Sahibzada Muhammad Anis and Deputy Commissioner Kohat Saadat Hassan who also acts as Political Agent for the region, Ex-Federal Minister, Senator Abdul Razzaq, exParliamentarians Haji Noor Sher Afridi and Haji Baz Gul Afridi were present on the occasion. Initiation of gas supply project coupled with commitment for establishment of an industrial estate in the area will lead to launch of more projects of similar nature in rest of FATA in a gradual way, he said. Responding to the demands put forward by a tribal elder, Haji Noor Zaman Afridi, the Governor further stated that the FATA Development Authority has already completed feasibility study with regard to establishment of the Industrial Estate and funds will be allocated for this purpose under the ensuing Annual Development Program. APP
Economy suffering since 2006 due to bad policies: Ex-FBR chief LAHORE
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ormer FBr Chairman Abdullah Yousaf has said that the economic growth of the country had slide down since 2006 owing to the inconsistent tax system lack of business-friendly policies. While speaking during to a session at the Lahore Chamber of Commerce and Industry on Saturday, Former Chairman Federal Bureau of revenue (FBr) pointed out that Foreign Direct Investment (FDI) stood at $ 8.5 billion that has now come down to $500 million, depicting sliding of the economy in 2013. He noted that Pakistan has a great growth potential that could not be tapped so far because of inconsistency in policies, distortion in tax system, cumbersome taxation procedures and absence of businessfriendly policies. LCCI office-bearers including LCCI President Farooq Iftikhar, Senior Vice President Irfan Iqbal Sheikh, Vice President mian Abuzar Shad, former Presidents and executive Committee members spoke on various challenges being faced by the economy. He said that although there are a number of factors that could be blamed for this unlikely situation but frequent changes at policy level, regional instability and bureaucratic hurdles are the major reasons of
this decline. He said that we would have rs.63 billion when the dollar gains rs.1. He said that out of total rs.2 trillion to look into these issues to attract much government revenues, 58% goes to needed foreign investment. provinces under NFC award He called for increase in while out of remaining tax to GDP ratio to over42%, rs. 1 trillion is come the issue of fisAlthough there utilized for debt cal deficit. He said servicing, that the phenomeare a number of factors rs.600 billion nal increase in that could be blamed for defence country’s overand rs.500 all debts from for this unlikely billion are rs.6 trillion in situation, frequent spent on 2008 to rs.14 public sector trillion in changes at policy level, enterprises 2013 has also regional instability and including affected the railways, economic acbureaucratic hurdles PIA, Pakistan are the major reasons Steel mills and WAPDA etc. of this decline He suggested resource mobilization and privatization of public sector enterprises to ensure economic recovery. He said that the right taxation policies coupled with good tax administration would help ensure resource mobilization. He said that the documentation of cash economy would help resolve low tax to GDP ration phenomena and for docuFormer FBR Chairman Abdullah Yousaf mentation, the creation of data warehouse tivities to much extent. He said that the of potential sectors and third party inforheavy government borrowing and cur- mation are of prime importance. He said that Tax-to-GDP ratio of Pakrency devaluation could be blamed for huge debt that increases by more than istan is lowest in the world, which stands
at 9.0 percent of the GDP, however, lowincome countries normally have tax-toGDP ratio between 15 percent of the GDP to 18 percent of the GDP. middle-income countries have tax-to-GDP ratio ranging between 22 percent of the GDP to 25 percent of the GDP and tax-to-GDP ratio in high income countries is recorded at 40 percent of the GDP. Speaking on the occasion, LCCI President Farooq Iftikhar said that the business community understands that the government should not introduce any economic policy without due consultation with the stakeholders for true implementation. The LCCI President said that repeated issuance of Sros by the FBr is creating multiple problem for the business community therefore, in the larger interest of the economy, culture of Sros should be done away. He said that all sectors of the economy should be taxed. He said that the agriculture having 20.1% share in GDP is contributing only 1.2% to the national taxes. on the other hand, manufacturing sector has 25.5% share in GDP and is contributing 62.2% in the national taxes. Services sector share is 54.4% in GDP while is paying only one third of its share in the national taxes. Farooq Iftikhar said that under invoicing and smuggling are hitting the businesses hard and stringent measures are needed to weed out these evils.
India hopes Pakistan will soon give it MFN status Indian ambassador Nirupama Rao
NEW DELHI AGENCIES
Despite threats and clashes between the two arch-rivals, India still hoping that Pakistan would soon grant the most Favoured Nation (mFN) status to India, India’s top diplomat to the US has said that such a move would clear the ways for closer trade ties between the two neighbours. “Pakistan has assured us that it is going to provide most favoured nation status to India. We are waiting for that decision to actually be announced formally and implemented. That would certainly be a boost not only to confidence but also would clear the ways for much closer trade ties between the two countries,” Indian ambassador Nirupama rao said. She was responding to questions after delivering remarks on ‘US-India economic Agenda in 2013′ at the Centre for Strategic and International Studies (CSIS), a Washington-based eminent think-tank. “India and Pakistan are two close neighbours. We cannot disregard that basic fact, whatever the differences between us may be. We have put in place a process of dialogue between India and Pakistan and
significant part of that process does focus on how we may build better trade ties between the two countries. And there has been considerable movement on that front in the last 18 months,” she said. The business constituency, especially in Pakistan, rao argued, has a bigger desire to open trade with India. “They see benefit. They see good thing flowing out of that process. That itself is very encouraging,” she said. Noting that Afghanistan is a hub of Asia, the heart of Asia, the connective tissue between South and Central Asia, rao said: “We have to ensure that Afghanistan plays that role, for its own well-being, for our own well-being.” Transit and trade with Afghanistan through Pakistan into India is important in that context, she added. “I am not saying this because I have been authorised at the policy level to say this. I am saying this from my own knowledge of the subject and the constraints that we have faced and to allow Afghanistan to come into its own to really make its debut in terms of being trading partner for other South Asian nations, to enable free flow of goods and services to the rest of the region,” she said. responding to questions, rao said New Delhi is committed to expeditious conclusion of the negotia-
tions on bilateral inPakistan has vestment treaty (BIT). “It is assured us that it is going fairly a comto provide most favoured p l e x process. nation status to India. We are We are waiting for that decision to getting to a stage actually be announced where formally and implemented. we are examinThat would certainly be a i n g boost not only to confidence m o d e l texts, are ments, we are headed in the right but also would clear the ways talking to direction,” for much closer trade each other at once the BIT is in place, this the technical would set the stage for closer economic ties between the level. The goal is arrangement, rao said, in response to a two countries shared by two sides question on possibility of free trade agreement that we need to complete with the US. India has entered into discussion and this negotiation as quickly as looking into comprehensively into regional economic possible. So I am reasonably optimistic that the given partnership for ties with the ASeAN and with other the direction and the political will by the two govern- major economies in Asia.
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Resource mobilisation and privatisation of public sector enterprises will ensure economic recovery. — Former FBR chairman Abdullah Yousaf
‘Gwadar can be win-win project for all stakeholders’ ANALYST SAYS HANDING OVER OF GWADAR TO CHINA HAS OFFERED OPPORTUNITY TO UNDO SOME OF MISTAKES PAKISTAN HAS MADE IN PAST ISLAMABAD
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iewing Gwadar as a strategic location for China to the disadvantage of other global powers was a mere misperception. The economic prospects were definitely there for both the countries and it will be mutually beneficial for Pakistan and China as well as for many other countries across the region. This was the crux of a roundtable discussion held at the Institute of Policy Studies on the topic of “Gwadar: Current Status and Future Prospects” in collaboration with Pakistan Study Centre, Sichuan University, China. Senior research associate of IPS, Commander (r) Azhar Ahmad and Chinese analyst Professor Zhou rong were the main speakers while former ambassador Arif Ayub chaired the session. The participants viewed that if China was interested in establishing its
strategic presence in the Arabian Sea, it could have availed other options already available to it. China maintains one of the largest merchant ship fleet and if the management of port operations was with Chinese and related infrastructure was provided by the government, then Gwadar was such that it will definitely attract Chinese ships which would trans-ship into the Persian Gulf. Hence, a Chinese company was best suited for the port operations at Gwadar, while the predecessor company had no such interest with respect to this port. Presenting a survey of historical and geostrategic significance of Gwadar, Azhar Ahmed said that Pakistan had always neglected its maritime sector and had paid the price in a number of ways, including economic and strategic. Gwadar possesses great potential and its handing over to a Chinese company has offered an opportunity to undo some of the mistakes Pakistan has made in past years and should not be missed. Pakistan needs
to proceed on the project on war-foot- tion for international trade to western ing and start using the port to the part of China which lays at long disfullest of its potential. The leadership tance from Chinese ports in the east as needs to show political will and deter- well as for Gulf countries and Central Asian states. mination to national interests. The government needs to build He said further the port’s close proximity to Persian Gulf, which pro- road and railway linkages to use Gwadar as an alternative port for vides 60 percent of world’s oil the country and to offer its and overlooking the utilities to regional strategic lines of land-locked states. A communication The leadership comparison was adds value to made with other the port. It was needs to show regional coasts to much less vulpolitical will and show that the port nerable in is located at a case of any determination to place where it ofstrategic achieve national fers the best option threat. Several for trans-shipment. reports have interests There were a shown the econumber of other aspects nomic viability of the too which came under disport but to meet the envicussion, including putting up a sioned targets, the port needs further development of its infrastruc- coastal refinery and it was recalled that ture and connectivity with the hinter- such a project was jointly conceived by land. Contrary to what was generally Pakistan and Iran. It was suggested that projected, local population in the area the idea could be translated into operwas not averse to the port project and ation through assistance of China. see it as window of opportunity and Khalid rahman, DG-IPS, concluded employment for their future, he in- that the Gwadar port project, if handled with wisdom and dedication, would formed. other analysts said the transit contribute significantly to the developroute through China towards Central ment and security of the whole counAsia would offer the most viable op- try, particularly of Balochistan.
TAPI pipeline counts on oil and gas companies’ support ASTANA INP
For implementation of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline, as was the case with realisation of the project of Baku-Tbilisi-Ceyhan oil pipeline, support for oil and gas companies is necessary, KazTransoil JSC General manager Kairgeldy Kabyldin said. “TAPI is a very good project, which will have international repercussions. And its implementation requires support of oil and gas companies, as was the case with realisation of Baku-Tbilisi–Ceyhan oil pipeline. That is, the agreements must be signed among the resource owners who should ensure stability of supplies and security,” Kabyldin said, responding to questions here. According to him, gas not only from the western regions of Kazakhstan in case of industrial production, but also from russia can go by transit to get to the fast growing market of South Asia. “In my opinion, there is nothing better than such economically attractive projects that actually help to stabilise the situation in Afghanistan and Pakistan. After all, a lot of money for transit will go to social projects in these transit countries,” he said.
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Pakistan names 15 members for Joint Business Council with India ISLAMABAD ONLINE
The Pakistan government has nominated 15 members for the Pakistan-India Joint Business Council following a decision by the two countries to create the body to boost commerce and economic ties. Bashir Ali muhammad, the chairman of Gul Ahmed Textiles, Lucky Cement Ceo muhammad Ali Tabba, Habib Bank President and Ceo Nauman Dar, Iftikhar Ali malik, the owner of the Guard Group of Companies, Farmers Associates president muhammad Tariq Bucha and Pakistan-India Business Council chairman Noor muhammad Kasuri are among the nominated members. A notification regarding the nominated members has been issued by the Commerce ministry here in line with a decision made by the Commerce ministers of India and Pakistan in April last year to set up the Joint Business Council, officials said. The Commerce ministry will facilitate the first meeting of the Joint Business Council and the Foreign ministry has been asked to arrange dates for the meet.
Nishat hotel, shopping mall inaugurated LAHORE StAff rEPOrt
Chairman Nishat Group mian muhammad mansha performed ground breaking of Nishat Hotel and Shopping mall, a project on around 15 Acres (around 120 Kanals) by Nishat Hotels & Properties Limited, a Nishat Group company, in Lahore on Friday. The Lahore Development Authority had auctioned this piece of land a couple of months ago to the Nishat group. The project consists of a high quality state of the art hotel and shopping mall of international standard as well as large banquet hall catering to the needs of the surrounding areas. Located near expo Center (Trade and Finance Centre), m.A. Johar Town, the project will be completed within the next 2 to 3 years. The proposed building has a covered area of 2.75 million square feet comprising 11 levels (i.e. eight floors plus three basements with adequate parking bays) housing 4 Star 100 beds hotel, banquet halls, shopping malls and stores with food courts, cineplex, health and leisure zones etc.
CORPORATE CORNER LG recognized with red Dot and iF design awards LAHORE: Twenty seven of LG Electronics’ (LG) 2013 products were recognized by the red dot design awards for their excellence in the field of design. A panel of 37 independent judges considered over 4,662 products from 1,865 manufacturers, designers and architects from 54 countries. LG took top honors by receiving the coveted red dot: best of the best award for its new curved OLED TV. LG also received 24 other red dot design awards in addition to two honorable mentions. “Design has always been an important part of our DNA and in recent years it’s become even more important that we differentiate our products in
an industry that has become synonymous with great looking products,” said Dr. Scott Ahn, head of Corporate Design at LG Electronics. “Our ultimate philosophy is to incorporate designs that work but also evoke an emotional response. The design awards are a testament to the company’s success in this regard.” PrESS rELEASE
Bank of Punjab opens first Islamic Banking branch in Lahore
LAHORE: The Bank of Punjab (BOP) has launched Islamic Banking to provide its customers with Shariah compliant services under licence issued by the State Bank of Pakistan. The first of BOP’s Islamic Banking branches was inaugurated on March 15, 2013, by Hon. Chief Minister of Punjab, Mian Shahbaz Sharif at a ceremony held at BOP’s branch in Main Boulevard
New Garden Town, Lahore. While addressing the guests at the inauguration ceremony, the President of BOP, Mr. Naeemuddin Khan said that Pakistan has always been positioned to promote Islamic Banking considering its constitutional obligation to establish a riba-free economic system as well as its population of 95 percent Muslims serving as a promising prospect. The start of Islamic Banking at BOP comes in the wake of four years of committed hard work by the management to turn the bank around. Even though BOP has entered the Islamic Banking industry much later than a number of other banks, it aspires to catch up with its peers in the not too distant future and become the bank of choice for Shariah conscious customers. PrESS rELEASE
KARACHI: Girls participate in Pak Suzuki’s beach cleaning campaign at Sea View Clifton. StAff PHOtO
KARACHI: Zong arranged a training workshop for journalists on branchless banking at Institute of Business Administration. Pr