PRO 20-04-2012_Layout 1 4/19/2012 11:58 PM Page 1
It’s the final countdown
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profit.com.pk
Friday, 20 April, 2012
cOMMENT
Spanner in the works
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THE MISSING LINK
It’s not just any port in a storm NA body for making Gwadar Port functional Recommends allocation of Rs 8 billion for road infrastructure linking to the port NHA covers the bases in terms of construction work g
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ISLAMABAD
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ONLINE
he National Assembly Standing Committee on Ports and Shipping, Thursday, appealed to ensure maintenance of law and order in Balochistan to make Gwadar Port functional. Committee also recommended allocation of Rs 8 billions funds for the completion of road infrastructure linking Gawadar Port to the rest of the country. Gwadar Port Authority (GPA) demanded of release of Rs 350 millions for maintenance of dredging channel, however, Finance Division raised the objection on the demand arguing that GPA’s expenditures were higher by many times than earning. Committee members also questioned transparency in agreement of leasing Gwadar Port to Singapore Port.
NA body also summoned Chief Minister, Chief Secretary, Inspector General Police Balochistan and Divisional Inspector Generals of restive districts to next meeting scheduled to be held in next month to brief the committee on possible steps for ensure law and order in disturbed districts. The Standing Committee met here under the chairmanship of acting Chairman Khawaja Sohail Mansoor to discus comprehensive plan of action in cooperation with Communications and Finance Ministries for development of Gwadar Port on priority basis. National highway Authority (NhA) Member Construction Aurang Zeb Khan briefed the house that constitution work on roads linking Gwadar Port to other areas of the country was almost stopped due to worst law and order situation in Panjgore, Turbat and Khuzdar and few others districts. “even, local contractors from Balochistan are not willing to carryout
construction projects in those areas” he said adding that moreover, Finance Division was not releasing allocated funds so development work on ongoing projects would also be closed by the end of this month. he further apprised the committee that Frontier Works Organization (FWO) had been mobilized for development work on KhuzdarRatodero section, but worst law and order situation was hampering contractors for carrying work. To a question from the panel of lawmakers, he observed that NhA and GPA officials held two meetings with Chief Minister Balochistan over the issue of law and order situation, but no positive development had been made so far. however, he maintained that NhA could complete road infrastructure linking Gwadar Port to other areas in 2013, provided with required funds. NA body while showing concerns over delayed completion of roads and
THROWING TOYS OUT OF THE PRAM
Textile tantrums, Act 5, Scene 11 Exposure of Pak textile to Indian exports will play havoc sooner than later: APTMA chairman g Mohsin Aziz moans about (insert stereotypical issue), whines about (insert over-hyped problem) g
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STAFF REPORT
hAIRMAN All Pakistan Textile Mills Association (APTMA) Mohsin Aziz has said the declining textile exports amidst unbearable interest rate regime and exposure of local industry to the Indian textile exports under normalization of trade arrangement would play havoc sooner than later.
expressing his concerns, he said there is a worrisome decline in textile exports both in value (22%) and quantity terms in March 2012 comparing with the corresponding period, slashing down overall exports by $1 billion during first nine months of current fiscal year against same period last year.Chairman APTMA lamented that textile industry was fast losing its strength in a situation when talks on Indo-Pak bilateral trade are near to finalization without addressing the concerns of APTMA.
he said it is quite amazing that yarn and synthetic fibre are put in positive list whereas the Polyester Staple Fibre (PSF), the raw material for syntheticsbased textile products, has been placed in the negative list. According to him, the government should ensure level playing field for cross border trade by equalizing not only import duties but domestic duties as well. For example, he said, the duty inclusive taxes on yarn is over 25% in India as against 10% duty on synthetic
highways linking Gwadar Port to other areas, recommended allocation of Rs 8 billions for NhA to be spent purely said on road infrastructure in next PSDP. GPA Chairman demanded support from the committee in allocation of Rs 350 millions for maintenance of dredging channel saying that as per agreement with Singapore Port Authority, maintenance of the port was responsibility GPA, and committee recommended immediate release of required funds, but Finance Division representative contracted the GPA demand on account that expenditures of PA higher by many times than the earnings. At this members of the committee questioned into the justification for signing such an agreement of losses with Singapore Port Authority, but MQM members defended the agreement saying that no other company or firm had participated in bid, so accord was signed with Singapore Port Authority.
and zero percent duty on cotton yarn in Pakistan. Further, he said, the PSF should also be in the positive list with same duty structure. And if not, then the synthetic fibre and yarn should also be in the negative list. Mohsin said that in order to give Pakistan industry a fair chance for enhancing exports and also allowing India to enter in export to Pakistan on a level playing term. Otherwise, he said, it would lead to opening up of flood gates for Indian exports while Pakistan will not be benefiting from these new arrangements. he said exclusion of PSF from the negative list of items not importable from India is necessary to ensure provision of this basic raw material to the textile industry specially in the present scenario of acute domestic demand-supply shortfall of more than 150,000 tons due to the complete shutdown of Dewan Salman Fibres
T is noted with serious concern that counter productive and possibly deliberate bottlenecks on the Indian side threaten to put the classical spanner in the works with regard to the muchtrumpeted trade liberalisation process. And that too even before it has properly begun. It cannot be stressed enough that this exercise must not be allowed to degenerate into non-significance reminiscent of CBMs Mr Manmohan Singh initiated with General Musharraf. Then, too, it was New Delhi’s reluctance to incorporate the agreed advance to debating politically contentious issues once popular goodwill was established that wasted diplomatic and financial efforts. News reports of ridiculous new restrictions on Pakistani exports – uninformed bars on tonnage, etc – that jack up transportation costs clearly indicate New Delhi’s inability to tame influential lobbies. Clearly India’s cement industry remains politically powerful, obstructing Pakistan’s best bet long enough to render it uncompetitive. And since such absurdities were obviously not part of the negotiations, all else remaining constant, they betray cunning that is not only not chivalrous, but also in poor diplomatic taste, not to mention downright illegal. Islamabad should respond, but not in kind, for the sake of the last few months’ diplomacy, if not the face value of Anand Sharma’s remarks recently, that we must do this for our children, etc, etc. There is clearly a wedge right at the heart of Delhi’s decision making machinery, a tug of war between those forever locked in a senseless confrontation from a bygone era, and those that look to move ahead for mutual benefit, just as we have here. It’s the side that shows most support for progressive elements across the divide that will do both a huge favour. If the high, and low, of the recent past prompts a suggestion, it’s that Pakistan and India must keep talking, preferably at the highest level, and remove irregularities personally, at least initially.
Limited, one of the largest PSF manufacturers of the country. exclusion of PSF from the negative list assumes an added urgency in view of the fact that value-added items of PSF are not on the negative list and are freely importable from India and as such a situation whereby value-addition in the country is discouraged. Chairman APTMA said in spite of energy shortage and supply-side constraints the textile industry still manages to be internationally competitive. With the patronage of Ministry of Commerce we welcome the opening up of trade between the two countries and only wish for equitable and fair trading terms, he said, adding: To secure these terms we look forward to the Ministry of Commerce and urge to take up the issue with Indian Counterpart and also with the Ministry of Finance and Federal Board of Revenue to provide level playing field to the local industry.