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Wednesday, 29 August, 2012
What happened to the Korangi pipeline project? KARACHI
T
STAFF REPORT:
he industry representatives have demanded of the Karachi Water and Sewerage Board (KWSB) to execute the Rs38.4 million water pipeline project for Korangi’s Tannery Zone. In a joint statement issued Tuesday, Patron In-Chief Korangi Association of Trade and Industry (KATI), S M Muneer, President All Karachi Industrial Alliance Mian Zahid hussain, Chairman Pakistan Tanners Association (SZ) M Khurshid Ahmed and Vice Chairman, Fawad Javed while appreciating Governor Sindh Dr Ishratul ebad Khan’s special allocation of funds for the exclusive project of water pipeline to the tannery zone for supply of five million gallons per day, asked the KWSB Managing Director to order the contractor to execute the work without further delay as the project which was approved by the Governor Sindh on urgent basis is being delayed inordi-
‘Pakistani exporters utilize only 10% items under US GSP list’ KARACHI APP
Pakistani exporters were using only ten percent items from the list of 3,400 products which are allowed duty free in US market under Generalized System of Preference (GSP). This was stated by Deputy Assistant U.S. Trade Representative for South and Central Asia, Mara Burr while addressing Pakistan businessmen from USA via video link from Washington at a roundtable hosted by US Consulate in Karachi on “expanding and Diversifying Pakistan’s exports to the United States” at a local hotel on Tuesday. She said that lack of awareness about GSP among Pakistani exporters was the major reason for meager utilization of duty free trade access facility. She underlined the need for introduction of transparent laws and simple legal arbitration procedures to attract US investment into Pakistan. Ms Burr noted that Pakistan’s exports to USA can be expanded by supporting Pakistani women entrepreneurs and small and medium enterprises (SMes).
LCCI tells a horror story LAHORE APP
Lahore Chamber of Commerce and Industry Tuesday feared that dollar surge could reignite high inflation and halt growth by hitting all the important sectors of economy. The LCCI President Irfan Qaiser Sheikh said here that recent surge in the prices of greenback would not only jackup the input cost but also erode profit margins, therefore, State Bank of Pakistan needs to ascertain the factors weakening the value of rupee and check the possibilities of undue speculations and malpractice in the operation of foreign exchange markets in Pakistan to stabilize rupee and restore the confidence of the business community. he said though the weaker rupee benefitted the exporters by giving them more rupees per dollar, but this benefit was neutralized by the costly imported inputs of manufacturing sector including textiles thus eroding the financial advantage of a weaker rupee.
Industrialists call upon KWSB for execution of Rs38.4m water pipeline project nately by the KWSB staff and the contractor. They said that a delegation led by S M Muneer along with PTA Chief Khurshid Ahmed met with Governor Sindh a couple of months ago for release of funds and the Governor has very kindly released the funds required for the project and the KWSB has already received the full amount for the project for over two months.
They however said that KWSB is yet to start the laying of pipeline whereas the export oriented leather industry is suffering badly due to drought like situation in Tannery Zone. They said that water supply has remained suspended for the last few years and now the sub soil water too is not available in the area. Munir said that the second largest foreign exchange earning export industry is suffering badly due to the non-supply of water by KWSB despite the fact that waters is the lifeline of tanning and leather industry. Over billion dollar leather industry is dying due to the want of water and even the wells supplying sub soil water are drying up fast, PTA Chairman Khurshid warned. he said that Governor Sindh had instructed the KWSB MD to lay out a separate pipeline for 5 MGD water to the Tannery Zone so that the dying industry might survive from total collapse. he further asked the Commissioner Karachi to order ZMC east to immediately remove solid waste being piled up in the area due to suspension of municipal work in Tannery Zone since the abolition of city government.
Thai curry in The Trade cauldron BANGKOK APP
Pakistan and Thailand have urged the need to enhance bilateral cooperation in diverse fields, particularly in the areas of trade, investment and tourism for mutual benefit. This was highlighted during a seminar on “Six Decades of Thailand-Pakistan Friendship: Towards Building a Strong economic Partnership,” organized in close collaboration by the Thailand’s Ministry of Foreign Affairs and Pakistan’s embassy in Bangkok. The Seminar was part of the events celebrating the 60th anniversary of Pakistan-Thailand diplomatic relations. On this occasion, a special stamp marking the 50th anniversary of the State Visit of Their Majesties’ King Bhumibol Adulyadej and Queen Sirikit to Pakistan was also issued. Thailand’s Vice Foreign Minister Jullapong Nonsrichai delivered the opening statement, during which he highlighted the importance Thailand attaches to further deepening its relations with Pakistan as part of the “Look West” policy. he expressed the hope that bilateral relations will continue to expand in diverse fields in the years to come. Pakistan’s Ambassador to Thailand Sohail Mahmood delivered a comprehensive statement on the “Future of Thailand-Pakistan Relations.” he inter alia underscored that both sides must build a
Spanish recession set to deepen
substantive partnership, underpinned by a robust economic relationship, both on the bilateral and regional planes. The central focus of the Seminar was on trade, investment and tourism cooperation. Detailed presentations were made on Pakistan’s trade and FDI policies, experiences of doing business in Pakistan, and potential for tourism to Buddhist heritage sites in Pakistan dating back to the Gandhara period, including Taxila. A senior Buddhist monk, Venerable Dr. Anil Sakya, highlighted the religious significance of this shared heritage for the Thai people. Over 150 participants including senior Thai Government figures, members of the business community in both countries, and the media attended the Seminar. Thailand’s Trade Representative (TTR) Pichate Satrichaval (having a Ministerial rank) remained present throughout the seminar. As part of the proceedings, Thailand’s ICT Minister Anudith Nakornthap presided over the ceremony to formally launch the special stamp on the 50th anniversary of the Royal State to Pakistan (in 1962).
MADRID AGENCIES
The Spanish economy is falling deeper into recession and depositors are pulling their money out of the banks, figures published on Tuesday showed, as the government moves closer to seeking a european rescue package. The recession grew stronger in the second quarter of the year and is expected to get worse as austerity measures introduced in response to the euro zone debt crisis cut into demand for goods and services. A rush by consumers and firms to withdraw their money from Spanish banks intensified in July, with private sector deposits falling almost 5 percent, to 1.509 trillion euros at end-July from 1.583 trillion a month earlier. Analysts believe it is inevitable that Spain will soon have to call for
‘New gas policy to encourage investments, boost industrial progress’ ISLAMABAD APP
Gas is ultimate need of industry and the government should restrict utilization of Compressed Natural Gas (CNG) in public transport and use reservoirs to revive industrial sector through providing fuel to power houses. “No country can progress without revival of industry and gas resources should be focused for running industry”, said Samina Fazil, founding member of Women Chamber of Commerce and Industry while talking to APP here on Tuesday. She said one single industry would give job opportunities to hundreds of people and move the country towards the path of progress and socioeconomic prosperity so it should be prime responsibility of the government to take steps in this regard. A number of industrialists and business community of twin cities of Rawalpindi and Islamabad appreciated the government for announcing new incentive based petroleum policy to attract investors in this sector. They expressed the hope that this policy would help produce more oil and gas reservoirs for the country and help resolve the current energy crisis being faced by the country.
Uncle Sam upbeat about our exports Senior US trade officials visit Karachi to promote Pakistani exports
Pakistan, Thailand for enhanced trade, investment, tourism cooperation
AUSTERITY BITES
Gaseous pleasures
KARACHI STAFF REPORT
The U.S. Consulate General, Michael Dodman, hosted an export workshop and discussion with the U.S. Department of Commerce, Office of the U.S. Trade Representative, Senior Pakistani officials and local business leaders. The U.S. representatives are promoting greater U.S.-Pakistan trade relations by explaining how customs regulations and the Generalized System of Preferences can expand trade between our countries. The goal of the program is to expand and diversify Pakistani exports to the U.S. under existing programs. In his opening remarks, CG Dodman noted that “First and most important, U.S. markets are open. The United States is by far Pakistan’s single biggest export market, taking 16% of Pakistan’s total exports. Annually, Pakistan exports over $3 billion to the U.S. and enjoys a large trade surplus with the US.
a european rescue package to help bring its debt costs down as austerity measures designed to slash the public deficit push the economy deeper into recession. Against this background, Prime Minister Mariano Rajoy will meet european Council President herman Van Rompuy in Madrid later on Tuesday, a week before the european Central Bank discusses new measures to help debt costs in european nations hardest-hit by the crisis. The eCB meeting on Sept. 6 also coincides with a visit by German Chancellor Angela Merkel to the Spanish capital and a key longer-term bond auction. “With much more fiscal austerity in the pipeline and unemployment at astronomic highs, the risks are clearly tilted towards a more protracted recession,” said Martin van Vliet, an economist at ING. he expected Spain to formally request additional external financing in mid-September or October. Spain has already negotiated up to 100 billion euros in aid for its ailing banks. BLOATED DEFICIT: Spain’s economy fell back into recession in the first quarter of the year, when output fell 0.3 percent, and government estimates show GDP will probably fall this year and next.
The data came a day after Spain said its economy performed worse than expected in both of the last two years. economists said the outlook could test Spain’s ability to slash its deficit this year to 6.3 percent from 8.9 percent in 2011. “The economy is much weaker than previously thought and this could make it more challenging for the government to achieve the ambitious fiscal targets,” said Tullia Bucco, an economist at UniCredit. Tuesday’s data showed exports provided a degree of support for the economy, growing by 3.3 percent year-on-year in the second quarter. That compared with a fall of 3.9 percent in national demand, after a revised fall of 3.2 percent in the first quarter. The government is hoping that exports will put the economy on the road to recovery. But a slowdown in the wider euro zone, where most of Spain’s goods are shipped, could put that theory at risk. More encouragingly, the Treasury managed to sell 3.6 billion euros ($4.5 billion) of short-term debt, and paid far less to investors than a month ago. The yield on the 3-month bill was 0.946 percent, down from 2.434 percent a month ago, and was 2.026 percent on the 6-month bill, down from from 3.691 percent in July.