PRO 23-11-2012_Layout 1 11/22/2012 11:31 PM Page 1
Friday, 23 November, 2012
PTA with Pakistan in 15 days: Indonesian minister IslAmAbAd
I
OnLIne
NDONESIAN Minister for Trade Gita Wirjawan on Thursday said that the Preferential Trade Agreement (PTA) signed with Pakistan earlier this year would become operational in 15 days. He said the implementation of PTA signed on February 4, 2012 will not only improve relations between the two countries but also provide a level playing field to all exporters of edible oil who have vested interests in a lucrative Pakistani market. Wirjawan stated this while talking to a select group of edible oil importers led by Pakistan Vanaspati Manufacturers Association (PVMA) Senior Vice President Atif Ikram Sheikh who is also Islamabad FPCCI Capital Office Coordination Chairman. Akbar Iqbal Puri, Malik Sohail, Leonard F Hutabarat, Asia Pacific and African Affairs Director General Muhammad Hartantyo, Indonesian ministry of foreign affairs representa-
tives and others were also present in the meeting arranged by the Indonesian embassy. Wirjawan gave assurances that Indonesia will provide every possible facility to Pakistani importers. Sheikh and Puri, on the occasion said the imposition of PTA will provide incentives that will boost Indonesian exports into Pakistan. Initially, Pakistan will save 35 USD per ton on import of palm oil from Indonesia which will help the country save a total of 70 million dollars of precious foreign exchange per annum. Sheikh further said Indonesia imports will not only help importers save money but will assist manufacturers in clipping prices which will benefit the common man. He also stated that PTA will help Pakistani exporters gain enhanced access to Indonesian markets on 216 tariff lines at the preferential rate. This will be a great opportunity for Pakistani businessmen dealing in fresh fruits, cotton yarn, cotton fabrics, readymade garments, fans, sports
Argentine envoy stresses for enhanced Pak-Argentine trade relations IslAmAbAd Argentine Ambassador to Pakistan and Dean of Diplomatic Corps Rodolfo J Martin Saravia, while addressing the business community at Islamabad Chamber of Commerce & Industry (ICCI) said there was a need for increasing economic, commercial and political activities between Pakistan and Argentina to enhance bilateral trade relations between the business communities of both countries. He said his country had started joint ventures with Pakistani pharmaceutical companies to produce medicines for Cancer and Hepatitis C treatment in Pakistan. Saravia further said that Argentina is a leader in the use of CNG and Pakistan was already importing CNG equipment
from Argentina, adding that agriculture, alternative energies, pharmaceutics and CNG buses for passengers could serve as key sectors for starting joint venture. He said the bilateral trade volume between the two countries stood at $200 million in 2008 which dipped to around $130 million in recent years which implied there was a dire need to find ways and means through which the trade volume could be increased. He further stated that Pakistan had great potential in exporting fruits and vegetables in the international market, therefore, fruit processing plants should be developed on modern lines to avoid wastage of large quantities due to lack of proper packaging. In his welcome address, President ICCI Zafar Bakhtawari lauded Saravia’s efforts in playing a dynamic role to
strengthen bilateral relations in all spheres between the two countries. Bakhtawari said both countries should concentrate on existing opportunities and suggested that cooperation could be enhanced in agriculture, energy and pharmaceutical sectors. He stated that visits of business delegations should also be encouraged to explore markets. In this connection, he invited business delegations from Argentina for meeting with their Pakistani counterparts. Bakhtawari said Pakistan’s exports to Argentina did not make significant improvements in recent years which meant there was a need to undertake frequent activities such as people to people contacts, organising country exhibitions, participation in fairs, seminars and workshops to ensure a continuous liaison.
goods, leather goods and other industrial products, he said. He observed that this crucial development will help
stakeholders anticipate future developments in an increasingly challenging global economy and enable diversifica-
tion of exports, thereby increasing their resilience amidst the current economic meltdown.
OnLIne
Iran offers energy at 10 cents to Pakistan, says progress on IP gas pipeline slow Embargoed Tehran wants banking ties with Pakistan g KCCI sees need for Karachi-Tehran Joint Chamber of Commerce and Industry g
KARACHI ISMAIL DILAWAR
Iran Thursday said progress on the mega project of Iran-Pakistan (IP) pipeline project was slow and being affected by international pressure and other factors. Further, Tehran expressed a strong desire for establishing banking channels with the neighbouring Pakistan for which Iranian side had held several meetings with last four governors of the State Bank of Pakistan. Also, the Karachi Chamber of Commerce and Industry (KCCI) called for the setting up of Karachi-Tehran Joint Chamber of Commerce and Industry to explore the huge trading potential between the two bordering countries. “The progress on mega project on cost sharing basis between the two countries is slow,” Consul General of Iran in Karachi Abbas Ali Abdollahi told a farewell reception held here by KCCI in honour of the outgoing consul general on the completion of his 29 months assignment in the city. Abbas said Iran had laid 1200 kilometres pipelines from Bander Abbas up to Balochistan border, but international pressure and other factors were affecting the progress on the “peace pipeline”. He said Iran being next door neighbour could give energy in 10 cents to Pakistan. The consul general hoped that international sanctions against his country won’t affect historical relations between the two brotherly Muslim countries. “In future a lot of avenues of mutual cooperation would open,” he said adding Pak-Iran friendship would further strengthen in future. Abbas, however, said unlike political relations bilateral trade ties between Pakistan and Iran were not reflecting the existing potentials due to the sanctions. The consul general said he had held several meetings with last four governors of the SBP on the establishment of banking channel between the two countries. The Bank Milli of Iran could open its branches in Pakistan and in reciprocity National Bank of Pakistan could do the same in Iran, he said.
He viewed Pakistan’s banking channels were established with various countries worldwide thus with Iran should not be neglected. He said top leadership and ministers do have the will to cement ties whereas progress on the implementation side was slow. He asserted that initiatives were required to formalize undocumented trade between the two countries. About the regional blocks, the Iranian consul general said the ECO was not much vibrant as compared to RCD. He opined that there should be no embargo on Pak-Iran trade as other countries of the world were doing trade with Iran. He said Iran’s trade with other regional countries was higher as compared to Pakistan. Pakistani rice, wheat, fruits, dry fruits, mangoes, textiles items, petrochemical, livestock, meat, dairy had a great demand in Iran. Talking to Abbas, President KCCI Muhammad Haroon Agar stressed the need for the establishment of Karachi-Tehran Joint Chamber of Commerce and Industry. Agar urged the governments of Pakistan and Iran to introduce banking channel and make arrangements for currency swap to enhance bilateral trade. He said the business transactions between Iran and Pakistan were routed through Asian Clearing Union which was more time-consuming than a normal Letter of Credit. While opening an LC through
Iran’s sister companies in Dubai also adds to cost, he said. The KCCI chief also stressed the need for taking measures such as economic integration and reduction in transaction costs, port-to-port activities and customs mechanism to expand the volume of bilateral trade. He urged to activate and develop regional trading block of ECO countries, particularly between Pakistan, Iran and Turkey. He proposed that the trade between Pakistan and Iran should be permitted in local currencies instead of dollars and the trade through railways and road be regularized. Agar viewed that Pakistan being energy-hungry country should seriously consider implementation of Iran-Pakistan Gas pipeline project which is burning need for Pakistan to overcome the energy crisis and for industrialization. He also called for deepening of the existing Preferential Trade Agreement which was signed in 2004 to be followed by a Free Trade Agreement. Upon agreement or on arrangements of barter trade Iran may export electricity and petroleum products to Pakistan. He underscored the need of regular exchange of trade delegations and organizing of exhibitions to enhance bilateral trade. He emphasized on the need of documentation of trade and formalize it through Balochistan border from where presently barter trade was in practice.
ECC meeting: Wheat support price and sugar export allowance increased g g
Weekly POL price adjustment abandoned Balochistan gets subsidy on tube wells IslAmAbAd StAff RepORt
Economic Coordination Committee (ECC) of the cabinet met on Thursday following which the support price of wheat for the next crop was increased to Rs 1200 per 40 kilogrammes against last year’s price of Rs 1050. Under the chairmanship of Federal Minister for Finance and Economic Affairs Dr Abdul Hafeez Sheikh, the members were informed that international prices of wheat were much higher which resulted in smuggling to neighbouring countries. It was brought to the committee’s notice that prices of inputs had risen during the last year and therefore to facilitate and encourage wheat growers it was essential to increase the support price. The ECC also approved the commerce ministry’s recommendation for reduction in the age limit of importing used cars from five to three years. The ECC decided that the decision will be effective from December 15, 2012 in order to facilitate the in process orders. The measure will provide relief to the local auto vendors industry which was deteriorating due to the import of used cars. The ECC allowed export of a total of 400,000 Mega Tonnes (MT) of sugar, an increase of 64,166 MT over its previous decision. The committee was informed that there was a huge surplus of sugar in the country and a bumper crop of sugarcane was expected this year. The measure has been approved in order to improve the liquidity position of sugar mills so that sugarcane growers are paid on time at the rate fixed by the government. The ECC further restored the agricultural tube wells subsidy in Balochistan. Under the approved procedure the tube well owners would pay Rs 6,000 per month. The federal government would pay 40 percent, and the Balochistan government 60 percent of the remaining amount. For bills over Rs 50,000, the excess would be paid by the tube well owner. The number of tube wells would remain static at 15,660. The decision will be effective from December 1, 2012. The shares assigned in the above arrangement will be reviewed after two years to lessen the burden on the federal government and transfer it onto the Balochistan government corresponding to the provincial share it receives from the divisible pool. Additionally, existing tube wells are to be replaced by solar tube wells. In line with the National Assembly’s resolution to discontinue the weekly price adjustment system of petroleum products, the ECC decided to abandon the prevailing weekly pricing system. However, a committee comprising of ministers for law and justice, petroleum and science and technology was formed to consider and suggest a pragmatic mechanism for POL pricing that will be considered in the next ECC meeting. The ECC also considered the summary of ministry of port and shipping to strengthen the Pakistan National Shipping Corporation (PNSC) and to make it a vibrant national carrier. The committee decided to reenforce the recommendations of the Kazi Committee with full force which included all public sector cargoes to be carried by PNSC and all government departments, autonomous and semiautonomous organisations to utilise the services of PNSC for carrying their cargoes. PNSC is to act as the shipping agency for all ministries, autonomous and semiautonomous departments of the government. Organisations like PSO, TCP and PSM should have long term contracts of shipping on a market based formula as was being done successfully with refineries.