BUSINESS
RECORDER
Wednesday 27th January, 2016
Body formed to set
interest rates independently
RECORDER REPORT
An independent Monetary
Policy Committee (MPC),
empowered to make monetary
policy and its allied decisions,
was constituted on Tuesday.
In November 2015, the
Parliament
legislated
amendments to the State
Bank of Pakistan Act, 1956,
for the establishment of an
independent MPC to make
monetary policy decisions.
Previously, there was an
Advisory
Committee
on
Monetary Policy with a
mandate
to
make
recommendations to the SBP
Central Board of Directors,
which was entrusted with the
powers to make monetary
policy
decisions.
State Bank of Pakistan (SBP)
has achieved an important
landmark in terms of an
independent monetary policy
setting and announced the
formation of an independent
MPC on Tuesday. According
to SBP, MPC comprises 9
members, including three
members
of
the
Board
nominated by the Board itself,
three external members who
will
be
economist
and
appointed by the Federal
Government
on
recommendations
of
the
Board and three senior
executives of the State Bank
nominated by the Governor.
While, the Governor State
Bank is the Chairman of the
committee.
Pursuant to the establishment
of the said committee under
section 9D of the Act,
members
have
been
nominated
for
the
said
committee.
The
three
members of MPC from the
Board include Khawaja Iqbal
Hassan,
Muhammed
Hidayatullah
and
Zafar
Masud.
The
federal
government has appointed Dr
Asad Zaman and Dr Qazi
Masood Ahmed as the
external members while the
third position remains vacant.
The external members of the
MPC have been appointed for
a period of three years and
will
be
eligible
for
reappointment for another
term
of
three
years.
The governor has nominated
Riaz
Riazuddin
(Deputy
Governor
Policy),
Saeed
Ahmad (Deputy Governor,
Financial Markets, IB &SI) and
Jameel Ahmed (Executive
Director, Financial Stability
and
Banking
Supervision
Group) as members. Section
9E of the SBP Amendment
Act (2015) defines the powers
and functions of MPC as
follows: "The Monetary Policy
Committee
shall,
without
prejudice to its powers and
functions and those of the
Bank, support the general
economic policies of the
Federal Government and shall
(a) formulate, support and
recommend the monetary
policy,
including,
as
appropriate, decisions relating
to
intermediate
monetary
objectives, key interest rates
and the supply of reserves in
Pakistan and may make
regulations
for
their
implementation; (b) approve
and issue the monetary policy
statement and other monetary
policy measures; (c) perform
any other functions conferred
on it by law; and (d) carry out
any
ancillary
activities
incidental to the exercise of its
functions under this Act."
BUSINESS
RECORDER
Wednesday 27th January, 2016
Monetary Policy on January 30
RECORDER REPORT
State Bank of Pakistan (SBP)
to announce Monetary Policy
for next two months on 30th
January. According to SBP,
the first meeting of the
Monetary Policy Committee
(MPC) has been scheduled on
Saturday for key decision on
discount
rate.
As
per
amendments to the State
Bank of Pakistan Act 1956, an
independent MPC to make
monetary policy decisions
instead of SBP's central board
of
directors.
Previously,
an
Advisory
Committee
on
Monetary
Policy was mandated to make
recommendations to the SBP
Central Board of Directors,
which was entrusted with the
powers to make monetary
policy decisions. Analysts are
expecting another cut in the
upcoming monetary policy on
improved external account
and lower inflation. Inflation
for December 2015 remained
significantly
below
expectations at 3.2 percent.
Considering December 2015
number and lower oil and
commodity prices, analysts
now
expect
inflation to
average in the range 3.5
percent-4.0 percent for FY16.
"We expect SBP can further
revise down its inflation
estimate for FY16, which is
currently at 3.5-4.5 percent,"
said analysts at Topline
Securities. There are strong
chances of further reduction in
policy rate, which can be
potentially cut by 50 basis
points, they added. Already,
secondary market yields of Tbill and government bonds
have come down by 20-30
basis points since beginning
January-16, which further
strengthens the element of
surprise
in
December's
inflation and chances of
further rate cut, they said.
BUSINESS
RECORDER
Wednesday 27th January, 2016
Hopper wagons, bogie brake vans:
Rs 5.861 billion project approved by Dar
ZAHEER ABBASI
Finance Minister Ishaq Dar
has approved a project of Rs
5.861 billion for manufacturing
and procurement of 585
hopper wagons and 20 bogie
brake vans for transportation
of 6 million tons coal from
Karachi to Punjab for power
plants, it was learnt. Sources
in the Finance Ministry told
Business Recorder that the
project was submitted in the
meeting of the Executive
Committee
of
National
Economic Council (ECNEC)
chaired by Finance Minister
for
consideration
and
approval.
They added that the project
envisages
procurement/manufacture of
585
new
design
high
speed/high capacity hopper
wagons -285 completely built
unit (CBU) and 300 complete
knock down (CKD) - as well
as 20 brake vans (10 CBU &
10 CKD) to meet the demand
for the transportation of 6
million tons of coal from
Karachi port to upcountry in
Qadirabad district Sahiwal of
Punjab.
The meeting was informed
that the new wagons will be
equipped with air brakes,
central
couplers,
roller
bearings and with enhanced
pay load and improved turnround the availability of
wagons will increase, leading
to higher productivity. The
government is establishing
coal-based power plants in
different parts of the country to
generate
electricity
at
comparatively low cost and
Qadirabad Power plant near
Sahiwal is the first one to be
established.
The ECNEC in a proposal,
submitted by Ministry of
Planning and Development,
stated that in order to meet
the requirement of coal for the
power plants, the Pakistan
Railways
showed
its
commitment to transport coal
from port to said plant. The
project will be done in two
phases. Under phase I, 780
new design / high capacity
hopper wagons and 20 brake
vans will be manufactured and
procured, which has already
been approved by ECNEC on
13th May, 2015 at a total
estimated cost of Rs 8.863
million and at present it is in
tendering stage, while in
Phase II, 585 new vans will be
procured under the instant
PC-I.
The ECNEC was told that the
costs are based on the
process received in the last
tender of 780 hopper wagons
and 20 brake vans in phase-I
and updated according to
Planning
Commission's
formula and keeping in view
the existing price hike in the
steel market the government
of Punjab will provide Rs
1,227 million including Rs
1,195
million
Foreign
Exchange Component (FEC)
for the year (2015-16).
The project was submitted to
the
Central
Development
Working Party (CDWP) at the
total cost of Rs 6,000 million
including
FEC
of
Rs
4,011.438 million on 30th
September, 2015 and the
meeting approved the project
in
principle
subject
to
rationalisation of scope and
cost.
The CDWP also observed that
procurement of bogie vans is
a commercial transaction;
hence its financing mode
should also be on commercial
lines. The meeting also
decided that the committee
will also consider other modes
of financing for the project
such
as
Public
Private
Partnership (PPP) and Built
Operate and Transfer (BOT)
as well as requirement of
Viability Gap Funding (VGF)
or
loan
from
Finance
Department
without
compromising the time lines of
the project. The project is
submitted to the ECNEC at
the rationalised cost of Rs
5,86l million including FEC of
Rs
3,950.997milion
for
consideration and approval.
BUSINESS
RECORDER
Wednesday 27th January, 2016
Locations for CPEC industrial zones being
identified; National Assembly body told
MUSHTAQ GHUMMAN
Secretary,
Ministry
of
Industries and Production
(MoI&P),
Arif
Azim
on
Tuesday said that the Ministry
has started the process to
identify locations for countrywide industrial zones to be
established under the China
Pakistan Economic Corridor.
He shared this information
with the members of Standing
Committee on Industries and
Production which met with
Asad Umar in the chair in the
committee room of the
Ministry. Minister for Industries
and
Production.
Ghulam Murtaza Jatoi did not
attend the meeting due to
other prior engagements.
Commenting
on
the
controversy with respect to
industrial zones or special
economic zones, Asad Umar
said that the government is
talking about CPEC for the
last two years and seven
months but he still does not
know where industrial zones
will be established. Asad
Umar, who is extending
support to KP government in
industrial sector, maintained
that there is zero consultations
with the "Pathans" on CPEC
projects.
The committee did not go into
details of proposed industrial
zones being considered by
the under pressure federal
government.
However,
Secretary MoI&P spoke very
little on the subject. "In house,
planning is underway in the
Ministry of Industries and
Production to identify the
locations for industrial zones,"
he added. The committee also
discussed
the
PSDP
allocations for the ongoing
fiscal year (2015-16) and next
fiscal year 2016-17 and
expressed
serious
reservations on allocation of
Rs 22.9994 billion for the
current
fiscal
year
and
projected allocation of Rs
22.773 billion in 2016-17.
The
committee
members
including
the
standing
committee Chairman argued
that Rs 22 billion is being
given to Punjab whereas the
share of other provinces and
FATA is neglected. One of the
committee
members,
Muzammal
Qureshi,
registered his protest on the
PSDP's
allocations.
The
committee was informed that
out of Rs 22.7 billion Rs 21
billion is being allocated for
the
Heavy
Mechanical
Complex
(HMC)
which
according to Secretary MoI&P
is
a
national
asset.
"The HMC is a national asset,
we cannot say it is a province
specific project. We are trying
to turn it around. We need to
save the HMC," Azim added.
The Secretary Industries,
however,
failed
to
sell
arguments to the committee
members
as
opposition
members opposed heavy
allocations to the HMC meant
for
up-gradation
whereas
treasury members opted to
remain
silent.
The government is making
efforts to upgrade the HMC to
develop local design and
engineering capabilities for
complete
power
plants.
Presently, the HMC has won
boiler contracts for two power
projects. Asad Umar argued
that he was not against the
revival of the HMC but
national resources should be
given evenly. He pointed out
that the PSM is also a national
asset which is shut for the last
seven
months
and
the
government is not giving
money
to
revamp
it.
The committee recommended
that the PSDP allocations for
projects be undertaken by the
Ministry of Industries and
Production should be based
on
National
Finance
Commission (NFC) awards.
The Standing Committee also
discussed issues being faced
by
the
Utility
Stores
Corporation
(USC)
with
respect
to
taxes.
The
chairman standing committee
argued that tax amnesty
scheme announced for the
private sector should also be
extended to the USC which is
paying 4 per cent turnover tax
on
sale
and
purchase.
"It seems very unfair that state
institutions pay much higher
rates due to the scheme.
Demand of equitability is that
whatever rate is applicable to
the private sector should also
be given to the USC," he
added. If the tax amnesty
scheme is applied to the USC,
its turn over tax will be around
0.5 per cent, which is much
lower as compared to the
current tax. The committee
recommended to the Finance
Ministry that rate of tax on
USC should be at par with the
private sector. The committee
further recommended that Rs
1 billion should be allocated
for
skill
development.
BUSINESS
RECORDER
Wednesday 27th January, 2016
The
Chairman
Standing
Committee also decided to
write a letter to Chairman
National
Accountability
Bureau (NAB) for not sending
any officer to update the
committee on the inquiry into
sugar inland subsidy case.
During the meeting, briefing
was given by the Chief
Executive
Officer
(CEO),
Pakistan Stone Development
Company (PASDEC), about
the
functioning
of
the
Company and issues of
salaries of its employees.
Alhaj Shah Jee Gul Afridi
proposed that the government
also focus on FATA which is
rich in marble and granite. The
committee discussed "The
Factories (Amendment) Bill,
2016"
(Amendments
in
sections 2 & 33Q, Act XXV of
1934) {moved by Ms Asiya
Naz Tanoli, MNA}" and
Scrutiny of the budgetary
proposals of the Ministry,
regarding the Public Sector
Development
Program
(PSDP) for the Financial Year
2016-17.
Members,
who
attended
the
meeting,
included
Isphanyar
M
Bhandara, MNA, Chaudhry
Riaz-ul-Haq,
MNA,
Muhammad
Muzammil
Qureshi,
MNA,
Maulana
Muhammad Gohar Shah and
Iftikhar-ud-din.
BUSINESS
RECORDER
Wednesday 27th January, 2016
Ministry of Textile being run
without person in command
TAHIR AMIN
The country''s textile sector,
which accounts for 55 percent
of total exports, is being run
on an adhoc basis as there
has been no textile minister
for the last ten months. The
officials at the ministry of
textile industry told Business
Recorder that the ministry''s
performance
lacks
coordination
after
Senator
Abbas Khan Afridi left as
Minister on completion of his
tenure in March 2015 as
senator
and
no
new
appointment has so far been
made
to
fill
the
slot.
According to the latest figures
of
Pakistan
Bureau
of
Statistics
(PBS),
textile
exports fell by 8.9 percent to
$6.269 billion in the first half of
current fiscal year (2015-16)
as compared to exports of
$6.884 billion in the same
period of last year. On monthon-month basis, the textile
group exports increased by
8.2 percent to $1.04 billion in
December as compared to the
previous month''s (November,
2016) exports of $961.455
million. On year-on-year basis
the exports also decreased by
11.21 percent in December
against exports of $1.171
billion in December, 2014.
Officials revealed that Prime
Minister Nawaz Sharif - the
Minister-In Charge of the
ministry of textile industry in
the absence of a federal
minister - has designated
Federal
Minister
for
Commerce Khurram Dastagir
Khan as chairman Federal
Textile Board (FTB). The FTB
was restructured and notified
to facilitate the textile sector
stakeholders. The platform
was supposed to be used to
monitor the implementation of
textile
policy
(2014-19)
including rationalisation of
cess/surcharges applicable on
textiles value chain industry
and its exports and its
utilisation. Dastagir was also
given the additional charge to
look into the parliamentary
affairs
of
the
ministry.
However, the absence of a
regular minister who can
provide policy guidelines with
changing
domestic
and
international
scenarios
is
resulting in serious problems
for the sector, said officials,
adding that some important
decisions regarding textile
policy
and
Export
Development Fund (EDF) are
pending since long. Textile
policy (2014-19) envisaged
increasing textile exports to
$26 billion in five years,
however the implementation
of the policy hangs in the
balance and little work has so
far been done in this regard.
The concerns of the industry
about the pending sales tax
refunds, withdrawal of various
surcharges on electricity like
tariff rationalisation surcharge,
gas and power availability at
competitive prices with other
regional countries, withdrawal
of
Gas
Infrastructure
Development Cess (GIDC)
and restoring zero rated
facility are still pending.
Sources revealed that in the
absence of a dedicated
minister there is no single
forum where the stakeholders
can engage the government
to resolve their problems.
BUSINESS
RECORDER
Wednesday 27th January, 2016
Causes behind cotton production decline:
PCGA for setting up judicial commission
RECORDER REPORT
Central Executive Committee
(CEC) of Pakistan Cotton
Ginners Association (PCGA)
has demanded that a highlevel
probe
commission
headed by a former judge of
the
Supreme
Court
be
constituted to investigate the
real causes of decline in
cotton
production
and
incurring a huge loss of Rs 50
billion.
Presiding over a meeting,
PCGA
chairman
Nawab
Shahzad Ali Khan said that it
was a national tragedy that
national cotton policy could
not be framed so far and
approval of the cotton seed
act and breeders proprietary
rights act were delayed. He
said that Punjab Chief Minister
Shahbaz Sharif should come
forward to save the Rs 1500
billion cotton economy and he
should fix the production
target at 20 million bales for
the next season and wellgerminated and internationally
certified seed be provided to
farmers to achieve the targets.
He said that farmers have
suffered a loss of Rs 50 billion
during this season and they
are forced to sell their cattle
heads to meet their daily
expenses. He warned that
entire cotton economy would
be collapsed in Pakistan and
all ginning factories, textile
mills, power looms would
come to a standstill if the
proposals of PCGA were not
accepted in letter and in spirit.
He said that farmers were
forced to shift themselves to
other crops if incentives were
not given to them. He
suggested the government
should provide qualitative
seed, fertilisers and other
inputs on subsidize rates to
stand them on their own feet.
He further suggested that
Chief Minister Punjab should
organise an emergency task
force and a monitoring cell to
ensure the proper cultivation
of cotton in the belt. He urged
upon the government to
approve the cotton seed act
and
breeders
proprietary
rights act forthwith to protect
the interest of the growers
who had suffered a huge loss
at the hands of unscrupulous
elements and seed mafia.
He held the ministry of textiles
responsible for all ills and it
failed
to
redress
the
grievances of all stakeholders
of cotton. He demanded for
constitution of an advisory
council
comprising
all
stakeholders of the cotton.
The meeting was attended by
Haji
Muhammad
Akram,
Group
Chairman,
ExChairmen Haji Hafeez Anwar,
Mukhtar
Ahmed
Baloch,
Amanullah Qureshi, Mahesh
Kumar, Sheikh Muhammad
Saeed and member of Central
Executive
Committee.
BUSINESS
RECORDER
Wednesday 27th January, 2016
Slowing emerging markets hamper
oil recovery: World Bank
RECORDER REPORT
The World Bank warned
Tuesday
that
slowing
emerging-market economies
were
hampering
an
oil
recovery, and prices could
sink further in a blow to a
"fragile"
global
economy.
Crude oil in 2016 is projected
to come in at $37 a barrel,
down
from
its
October
estimate of $51, the World
Bank said in a new quarterly
report.
"A
faster-thanexpected slowdown in major
emerging markets economies
- especially if combined with
financial stress - could further
reduce
commodity prices
considerably, setting back
growth
in
commodity
exporters and the global
economy," it said in the
Commodity Markets Outlook
report.
Oil prices fell below $30 a
barrel in mid-January to lows
last seen more than 12 years
ago amid a global oversupply
and weakening demand. The
World
Bank
recently
downgraded
the
growth
projections
for
emergingmarket
and
developing
economies, after they slowed
to a 3.3 percent pace last
year, their weakest showing
since 2010. Emerging-market
economies have been the
main drivers of commodity
demand growth since 2000, a
reason why their weakening
growth prospects are weighing
on commodity prices, the
World
Bank
said.
"Low commodity prices are a
double-edged sword, where
consumers
in
importing
countries stand to benefit
while
producers
in
net
exporting countries suffer,"
said Ayhan Kose, director of
the Bank''''s Development
Prospects
Group.
"It takes time for the benefits
of lower commodity prices to
be transformed into stronger
economic
growth
among
importers, but commodity
exporters are feeling the pain
right away." The World Bank
explained its stiff 27.5 percent
downgrade on 2016 oil prices
reflects a number of supply
and demand factors that
emerged in the past three
months. US oil production has
shown greater resilience due
to cost cuts and efficiency
gains,
it
said.
Other factors cited include the
"sooner-than-expected"
resumption of Iranian oil
exports after international
sanctions were lifted and mild
winter weather in the northern
hemisphere
that
reduced
demand for heating. Oil
prices, which fell by 47
percent in 2015, are expected
to decline at a slower pace, by
an additional 27 percent this
year,
the
report
said.
"The sharp oil price drop in
early 2016 does not appear
fully
warranted
by
fundamental drivers of oil
demand and supply, and is
likely to partly reverse," it said.
A recovery in the market
would be gradual, the World
Bank predicted. It projected oil
prices would rise to $48 a
barrel in 2017, but that
remains still well below $104
in 2013 before the market
began its nosedive in the
middle of the following year.
BUSINESS
RECORDER
Wednesday 27th January, 2016
THE RUPEE: bears dominate open market
RECORDER REPORT
Bears dominated the open
currency market on Tuesday
in the process of trading,
dealers said. Some analysts
said that due to increase in
dollars' rise, at a time during
the day, the rupee breached
Rs 105 barrier versus the
dollar.
OPEN MARKET RATES: The
rupee extended overnight fall,
losing more 10-paisa in
relation to the dollar for buying
and selling at Rs 106.30 and
at Rs 106.60 respectively, and
it also dropped by 10-paisa in
terms of the euro for buying
and selling at Rs 115.60 and
Rs 116.60, they added.
INTERBANK
MARKET
RATES: Despite surge in
demand, the rupee somehow,
managed to halt last levels
against the dollar for buying
and selling at Rs 104.94 and
Rs 104.95 respectively, they
said.
In the second Asian trade, the
dollar held close to recent
trading ranges, with investors
cautiously
awaiting
the
outcome of the Federal
Reserve's
two-day
policy
meeting amid the backdrop of
stressed financial markets and
slackening global growth. US
interest rates futures implied
traders placed a mere 13
percent chance the Fed will
hike
rates
this
week.
The euro was steady at
$1.0851, above last week's
two-week low of $1.0776 but
still undermined by growing
expectations
that
the
European Central Bank is
gearing up to take more
easing steps of its own. The
dollar was trading against the
Indian rupee at Rs 67.83, the
greenback was at 4.2890
versus the Malaysian ringgit
and the US currency was at
6.5796 in terms of the
Chinese
yuan.
Interbank
buy/sell rates for the taka
against the dollar on Tuesday:
78.50-78.50 (previous 78.5078.50.
Open Bid
Open Offer
Rs. 106.30
Rs. 106.60
Interbank Closing Rates:
Interbank Closing Rates For
Dollar on Tuesday.
Bid Rate
Offer Rate
Rs. 104.94
Rs. 104.95
RUPEE IN LAHORE: The Pak
rupee remained unchanged
against the US dollar on the
local currency market on
Tuesday.
According to the currency
dealers, the dollar did not
witness any change in its
buying and selling rate as it
was traded at its day earlier
closing of Rs 106.45 and Rs
106.70 on buying and selling
side,
respectively.
However, the rupee remained
strong
and
appreciated
against the pound sterling.
The pound's buying and
selling rate slipped from the
Monday closing of Rs 152.50
and Rs 153.30 to Rs 152.00
and Rs 153.00, respectively,
the
dealers
said.
RUPEE IN ISLAMABAD AND
RAWALPINDI: The dollar
further
gained
strength
against the Pak rupee at the
open currency markets of
Islamabad and Rawalpindi
here
on
Tuesday.
The dollar opened at Rs 106
(buying) and Rs 106.20
(selling) against same last
rate. It did not observe further
change in the second session
and closed at Rs 106 (buying)
and Rs 106.20 (selling).
Pound Sterling opened at Rs
158 (buying) and Rs 158.50
(selling)
against
same
overnight value. It did not
observe further change in the
evening session and closed at
Rs 158 (buying) and Rs
158.50
(selling).
BUSINESS
RECORDER
Wednesday 27th January, 2016
Framework of money market funds, income funds:
AMCs asked to comply with
additional requirements
SOHAIL SARFRAZ
The Securities and Exchange
Commission
of
Pakistan
(SECP) has directed all Asset
Management
Companies
(AMCs) to comply with the
additional requirements in
order to further strengthen the
regulatory
framework
of
Money Market Funds and
Income
Funds.
According to the SECP
direction No 01 of 2016 issued
here on Tuesday, the SECP
has issued categorization of
Open-End
Collective
Investments Schemes (CIS).
This is further to Circular NO.7
of 2009 dated March 6, 2009,
Circular No 16 of 2010 dated
July 07, 2010, Circular No 32
of 2012 dated October 18,
2012 and Circular No 09 of
2013 dated June 11, 2013 on
"Categorization of Open End
Collective
Investment
Schemes".
In order to further strengthen
the regulatory framework of
Money Market Funds and
Income Funds, the Securities
and Exchange Commission of
Pakistan in exercise of its
powers
conferred
under
Section 282 of the Companies
Ordinance,
1984
hereby
directs all Asset Management
Companies (AMCs) to comply
with the following additional
requirements:
First, AMCs shall at all times
maintain at least 10% of net
assets of Money Market
Funds in cash and treasury
bills that can be readily
converted
into
cash.
Secondly,
AMCs
shall
periodically
conduct
appropriate stress testing on
the portfolios of Money Market
and Income Funds under their
management based on certain
hypothetical and/or historical
events, such as rise in shortterm interest rate, an increase
in redemptions, a downgrade
or series of downgrades in
rating of portfolio securities, or
credit event etc. Thirdly, the
AMCs
shall
conduct
independent assessment of
credit worthiness of the
counter party while taking
credit exposure against any
party or in any security other
than Government Securities
on behalf of CIS as external
ratings are only one element
to take into consideration
when assessing the credit
quality of an instrument/entity.
Fourthly, AMCs shall develop
procedures
to
identify
investors whose redemption
request may pose risk to the
funds
under
their
management. AMCs must
ensure that appropriate efforts
are undertaken to identify
patterns in unit holders' cash
needs, sophistication, risk
aversion, as well as to assess
the concentration of the
investor base. All Asset
Management
Companies
must ensure compliance with
these requirements within 30
days of the date of this
Direction, the SECP added.
BUSINESS
RECORDER
Wednesday 27th January, 2016
Chinese delegation shows interest
in various projects
RECORDER REPORT
A delegation of Sino-Hydro
and Power China company
called on Sindh Chief Minister
Syed Qaim Ali Shah on
Tuesday and showed interest
in installing a coal-based
power plant, a cement factory,
a water project and a red line
transport project worth over $4
billion.
The
Chinese
delegation was led by Zhang
Ping and Jiang Ning'an. The
Sindh
government
was
represented by the Chief
Minister, Senator Saleem
Mandviwala,
Principal
Secretary to CM Alamuddin
Bullo, Secretary Transport
Taha Farooqui and other
concerned
officers.
The
Chief
Minister
was
informed that the company
had constructed the K-3 water
project in Karachi and was
again
interested
in
constructing the K-4 water
project. They said that the
company had already applied
for installation a coal-fired
power project of 600MW at
Port Qasim. "We have almost
completed all the formalities
and awaiting an NOC from the
government to start work on
the project," they said. They
also said that the project of
cement factory was also at in
the
final
stages
of
implementation.
The Chief Minister directed
Senior Member Board of
Revenue
Mohammad
Waseem to hold a meeting
with the Chinese investors, as
their application for the land
acquisition was already in
process. "The investors must
be facilitated on priority basis,"
he
said.
The
Chinese
investors said that they
wanted to establish a cement
factory at Super Highway.
The Chief Minister directed his
principal
secretary
to
personally co-ordinate with the
Board of Investment, transport
and water board so that the
proposed
investment
of
around $4 billion could be
brought in smoothly. "I want to
give them a one-window
facility in terms of filing papers
and getting NOCs," he said.
BUSINESS
RECORDER
Wednesday 27th January, 2016
Parliamentary panel informed:
Ban on new gas supply schemes
may be lifted
ABDUL RASHEED AZAD
A parliamentary panel on
Tuesday was informed that
the ban on new gas supply
schemes is likely to be lifted in
near future as the Ministry of
Petroleum
and
Natural
Resources has forwarded a
summary to the Council of
Common Interests (CCI). The
Senate Standing Committee
on Petroleum met here under
the chairmanship of Senator
Mir Israrullah Khan Zehri, but
he had to pacify the members
at the start of the meeting due
to absence of Secretary
Petroleum from the meeting.
Senator Nisar Muhammad
and other members of the
committee strongly expressed
his displeasure over absence
of
Federal
Minister
for
Petroleum Shahid Khaqan
Abbasi
and
Secretary
Petroleum
Arshid
Mirza.
However,
the
Committee
members raised the issue of
delay in resumption of gas
connections to new schemes
across the country. The
officials of Petroleum Ministry
said that the prime minister
has imposed a ban on all new
schemes and both the gas
utility companies were not
undertaking any new project.
.
meeting
The committee was informed
that the decision was taken as
the country was facing serious
gas shortage, and a summary
has been forwarded to the
CCI in this regard. CCI is a
constitutional body headed by
the prime minister and all the
chief ministers among others
are its members. The officials
told the Senate Committee
that summary regarding new
schemes worth around Rs
5.60
billion
has
been
forwarded to the CCI, which
includes
the
schemes
forwarded by Maulana Fazal
Ur
Rehman.
Senator
Baz
Muhammad
Khan asked the chairman of
the committee to include the
schemes proposed by him in
the
summary.
However,
Senator Mohsin Aziz decried
the
response
of
the
government in this regard and
said that the future of the
summary was still ambiguous.
"This is because nobody
knows when the next CCI
meeting will be held," he said
adding, "The CCI meeting has
to be called in after every
three months but there has
not been any single CCI
for
one
year."
The meeting also discussed
the status of employment for
the locals of oil producing
areas
in
the
relevant
companies. The committee
was informed that in Khyber
Pakhtunkhwa's three oil/gas
producing districts out of 529
total employees of different
Exploration and Production
(E&P)
companies
364
employees
were
locals.
Moreover, the public E&P
companies are finalising a
plan to regularise around
4,000 work charge employees
in near future. The meeting
discussed issues relating to
LPG royalty from the Khyber
Pakhtunkhwa (KPK) besides
questions asked by Senator
Mohsin Aziz regarding PSO
Board of Directors, injured
labourers of Hungarian oil/gas
E&P Company Mol in district
Karak, agreement between
ODGCL and owners of land of
productive
areas,
service
quota of locals of Karak and
Kohat in ODGCL, welfare
projects in Karak and Kohat,
provision of gas to 12 Union
Council of district Bannu came
under
discussion
BUSINESS
RECORDER
Wednesday 27th January, 2016
Non-professionals being allowed
to use WeBOC: APCAA
MUHAMMAD ALI
Customs department, which is
supposed to take all possible
measures to avoid security
risks,
is
said
granting
permissions to operate Web
Based
One
Customs
(WeBOC) for self-clearance of
imports
or
exports
consignments
to
nonprofessionals against undue
gains.
Talking to Business Recorder,
Arshad Jamal, Vice Chairman
All Pakistan Customs Agents
Association (APCAA), said
that WeBOC, which customs
claimed as automated system,
was not working as per
standards,
following
its
manual Risk Management
System (RMS). He said that
non-professionals were being
allowed to use the system for
selfclearance
of
consignments against undue
gains creating serious security
risks to the country's imports
and
exports.
On one hand, the Federal
Board of Revenue (FBR) has
made a six-month diploma
mandatory for the license
renewal of custom agents,
which he termed as justified
because it is technical & lawful
system. On the other hand,
the customs department is
giving permissions for selfclearance to non-license or
unprofessional
persons
against undue gains, he
maintained.
He alleged that the ID's of
WeBOC system were being
used by non-professionals,
who didn't even know about
the tariffs and customs related
laws. Moreover, he said that
customs
department
was
protecting the said illicit
activity as no mechanism had
so far been evolved to monitor
the process of issuing user
IDs of the system. Resultantly,
actual taxpayers are facing
immense difficulties while
dealing with customs related
affairs,
he
added.
Arshad
said
requested
member custom to look into
the matter and evolve a
proper mechanism for the
clearance of goods on self
clearance and suggested that
the process of the issuance of
IDs for self clearance should
be done as per licensing rules
with the aim to eliminate such
malpractices.
He
also
recommended the authorities
to monitor the performance of
the
self
clearance
and
categorise the sector of import
through audit and added that
member customs should issue
instructions to all concerned
offices to evolve criterion for
evaluating the performance of
customs
agents
in
coordination with APCAA for
license
renewal.
BUSINESS
RECORDER
Wednesday 27th January, 2016
Inland Revenue Inspectors:
FBR considering revised job description
RECORDER REPORT
The Federal Board of Revenue
(FBR) is considering the revised
job description of Inland Revenue
Inspectors taking into account
their powers, functions and
jurisdiction
issued
by
the
Regional Tax Office (RTO)
Rawalpindi. It is learnt that the
FBR Policy Wing is analysing the
revised Job description of Inland
Revenue Inspectors issued by
the said RTO for its replication
across the country. Following
approval of the FBR, the revised
Job
description
of
Inland
Revenue Inspectors may be
implemented in other RTOs on
the
same
pattern.
According to the office Order of
the RTO Rawalpindi received at
the FBR House here on Tuesday,
the tier of IIR is one of the most
vital components of Inland
Revenue (IR) department's field
staff. Over the last 10/15 years,
this tier which for a long used to
be our (FBR) premier "Teeth
staff" has been relegated to
sheer clerical pedestal. Though
rapid growth of universal self
assessment scheme (USAS) and
FBR's
internal
Reform
Programme, both necessitated
certain internal checks, drastically
curtailed
field
enforcement
activities and discouraged the
frequent interface between tax
collectors and tax payers, yet
erosion in the relevance of this
tier is unprecedented. In the
recent past some efforts have
been made to restore this lost
relevance by upgrading the post
of IIR to BS-16 but even this
elevation has not entailed any
meaningful change. It is need of
the time to revisit the job
description of IIR with the view to
convert this hitherto dormant tier
into a vibrant field force. This
order aiming at professional
realignment of IIR elaborates its
contours.
IIR- As Field Officer:-Financial
Intelligence & Vigilance Exercise
(FIVE): For the field assignments,
IIR needs to be recognised as the
field officer and for this purpose
the whole territorial jurisdiction of
RTO shall be divided into distinct
tax areas, assigning specific
areas to different IIRs. Thus each
IIR is assigned a specific
territorial jurisdiction wherein
he/she shall be responsible
following field tax activities.
He/she shall keep a vigilant eye
on all taxable activities in the
assigned area. This assignment,
which is in addition to the
routine/regular duties of all IIRs
shall be conducted on weekends
and would obligate IIRs to
discreetly observe and report, on
weekly basis, any noticeable
business venture, campaign,
activity, investment or scheme
taking place in the given
jurisdiction. These weekly reports
shall be made the basis for
various tax operations like BTB,
selection for Audit u/s 177,
remedial
measures
under
withholding tax provisions and
action under various sub sections
of section 122 of Income Tax
Ordinance, 2001. Following areas
shall
be
however
focused
specifically: Marriage & Wedding
Halls, Marquees and other
actionable cases u/s 236D;
businesses
liable
to
withhold/collect deduction at
source under withholding tax
regime;
private
schools,
especially which attract section
236I; private Hospitals, Clinics,
Nursing
Homes;
diagnostic
centres,
Laboratories
and
pharmacies; small and medium
manufacturing units liable to
sales tax; posh food outlets;
beauty parlours, Boutiques and
health centres and housing
schemes/societies, new shopping
malls & markets and luxury
apartments.
Throughout this exercise any
direct contact with the taxpayers
is strictly prohibited, it said. IIRAs Recovery Officer: In cases of
current and arrear demand,
involving amount Rs 500000 &
above all recovery measures
shall
be
undertaken
by
concerned IIR. Concerned CIRs
may delegate the powers u/s 210
of Income Tax Ordinance, 2001.
Similar delegation under Sales
Tax Act 1990 and FED Act 2005
shall be made by Chief
Commissioner under sections 32
and 29 of the respective statutes.
Service of Notices: In all potential
revenue yielding cases service of
material notices and orders shall
be
served
through
IIRs.
Field Inquiries & information
gathering:
IIRs
shall
be
extensively utilised for discreet
ground
check,
field
visits,
information gathering and field
inquiries. Raids, Confiscation and
arrests: IIR shall constitute the
integral component of all criminal
investigations,
proceedings
especially under Sales Tax and
FED. Operational parameters:
For all the aforesaid functions,
except
for
assignments
mentioned at Para 1 above, CIR,
ADCIR or Unit In charge
concerned
would
authorise
respective
IIRs
in
writing,
delegating the powers, wherever
so required. All assignments as
Field Officer shall be assigned by
the Chief Commissioner. At RTO
Rawalpindi HQs the order shall
be implemented with immediate
effect. After addressing their
peculiar problems similar order
for the Districts/Mufassal shall be
issued later on, office order of
RTO
Rawalpindi
added.
BUSINESS
RECORDER
Wednesday 27th January, 2016
Construction of Karachi Garment City:
National Assembly body concerned over
non-provision of land
RECORDER REPORT
National Assembly Standing
Committee on Textile Industry
met in Karachi on Tuesday
under the chairmanship of
Khawaja
Ghulam
Rasool
Koreja, MNA. A statement
issued here said that it
discussed
the
issue
of
allotment of land for the
Karachi Garment City with the
Land Utilisation Department,
Government
of
Sindh.
It said that the Committee was
informed that the federal
government has released Rs
300 million but there is a
dispute between Pakistan
Steel Mills, Government of
Sindh and the Textile City
regarding provision of land.
The Committee expressed
concern
over
the
nonprovision of land for the
construction
of
Karachi
Garment City. The Committee
directed the Ministry to invite
the Chief Secretary Sindh
along
with
Deputy
Commissioner concerned to
brief the Committee on the
said issue at the next meeting.
The Committee also directed
that representative of Steel
Mills and Secretary Industries
should also be called in the
next meeting so that matter
could be resolved at the
earliest.
The
Chairman,
Pakistan
Textile City Limited (PTCL)
briefed the Committee about
the problem faced by its
management
regarding
establishment of Textile City.
The Committee decided to
approach
Prime
Minister
Secretariat for the supply of
natural gas in textile city. The
statement further pointed out
that the Committee also found
misappropriation
in
the
construction of water pipeline
as out of 24 KM only 3.5 KM
line was constructed with the
huge amount of Rs 700
million.
It said that the Committee
directed the management of
PTCL to submit the complete
break-up of the project to the
Standing Committee in its next
meeting. The following MNAs
Sardar Muhammad Shafqat
Hayat Khan, Rana Umer Nazir
Khan, Haji Muhammad Akram
Ansari, Mian Shahid Hussain
Khan Bhatti, Malik Shakir
Bashir
Awan,
Jamshaid
Ahamd
Dasti,
Romina
Khurshid Alam were present
in
the
meeting.
BUSINESS
RECORDER
Wednesday 27th January, 2016
Cotton market:
Firmness prevails on moderate trade
RECORDER REPORT
Firmness prevailed on the
cotton market on Tuesday in
the process of moderate
trading, dealers said. The
official
spot
rate
was
unchanged at Rs 5,400,
dealers confirmed on phone.
In Sindh, prices of seed cotton
were at Rs 2000 and Rs 3000
and in the Punjab, rates were
at Rs 2300 and Rs 3150, they
said. In the ready business,
around 7000 bales of cotton
changed hands between Rs
5350 and Rs 5700, they said.
According to the market
sources,
needy
buyers
covered
their
immediate
requirements despite higher
rates. Cotton analyst, Naseem
Usman said that downward
trend in the international
market may be a negative
factor behind the lack of
buying
interest
among
spinners in the near future. In
an effort to achieve better
result in cotton production and
quality, a two-day workshop
on avoidance and settlement
of cotton dispute by the
International
Cotton
Association (ICA) started on
Tuesday in Karachi, confirmed
on
phone.
Reuters adds: Cotton futures
had their sharpest singlesession decline in six weeks
on Monday, dragged down by
declines in crude oil and
across
the
commodities
complex,
as
uncertainty
remained around China's
potential plans to offload its
massive
cotton
stockpile.
"There's no real supportive
news out there," said Ron
Lawson,
a
partner
at
commodity investment firm
Logic Advisors in Sonoma,
California. "The wind's blowing
south - (cotton) is going to
head that way." March cotton
on ICE Futures US settled
down 0.85 cent, or 1.36
percent, at 61.60 cents per lb,
marking the sharpest day of
losses since December 10. It
traded within a range of 61.41
and 62.49 cents a lb.
Total futures market volume
rose by 9,601 to 27,253 lots.
Data showed total open
interest gained 1,517 to
191,991 contracts in the
previous
session.
The
following deals finalised: 1000
bales of cotton from Faqirwali
at Rs 5350, 400 bales from
Lyyah at the same rate, 600
bales from Haroonabad at the
same rate, 400 bales from
Borewala at Rs 5375, 1000
bales from Fort Abbas at Rs
5375, 600 bales from Yazman
Mandi at Rs 5425, 400 bales
from Fazilpur at Rs 5500, 600
bales from Khenewal at the
Rs 5700, 600 bales from
Rahim Yar Khan at the same
rate, 600 bales from Saleput
at Rs 5500 and same figure
from Khediro at Rs 5125, they
said.
THE FOLLOWING ARE THE KCA OFFICIAL SPOT RATES FOR 2015-16 FOR LOCAL
DEALINGS IN PAK RUPEES FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
Spot Rate
Difference
Rate
Ex-Gin
Upcountry
Spot Rate
Ex-Karachi
Ex-Karachi in
For
Price
Expenses
Ex-Karachi
As on 25.01.2016
Rupees
37.324 Kgs
5,535
5,400
135
5,535
NIL
Equivalent
40 Kgs
5,932
5,787
145
5,932
NIL
BUSINESS
RECORDER
Wednesday 27th January, 2016
Cotton futures fall in commodities
rout as China uncertainty lingers
RECORDER REPORT
Cotton futures had their
sharpest
single-session
decline in six weeks on
Monday, dragged down by
declines in crude oil and
across
the
commodities
complex,
as
uncertainty
remained around China's
potential plans to offload its
massive
cotton
stockpile.
"There's no real supportive
news out there," said Ron
Lawson,
a
partner
at
commodity investment firm
Logic Advisors in Sonoma,
California. "The wind's blowing
south - (cotton) is going to
head that way." March cotton
on ICE Futures US settled
down 0.85 cent, or 1.36
percent, at 61.60 cents per lb,
marking the sharpest day of
losses since December 10. It
traded within a range of 61.41
and 62.49 cents a lb. Total
futures market volume rose by
9,601 to 27,253 lots. Data
showed total open interest
gained 1,517 to 191,991
contracts in the previous
session. Certificated cotton
stocks deliverable as of
January 25 totalled 58,627
480-lb bales, down from
61,303
in
the
previous
session.
The dollar index was down
0.31 percent. The Thomson
Reuters CoreCommodity CRB
Index,
which
tracks 19
commodities, was down 2.04
percent. Speculators raised
their net long position to
22,806 contracts, from 16,479
in the latest week. The
Relative Strength Index in the
most-active contract fell to
42.337.
New York cotton
RECORDER REPORT
The fluctuations observed during the day:
Current Session
Prior Day
Open
High
Low
Last
Time
Set
Chg
Vol
Set
Mar’16
61.45
61.75
60.96
61.36
14:00
Jan 26
-
-0.24
17007
61.60
May’16
62.10
62.25
61.55
61.96
14:00
Jan 26
-
-0.14
6690
62.10
Jul’16
62.23
62.59
61.96
62.37
14:00
Jan 26
-
-0.11
2742
62.48
Wednesday 27th January, 2016
Ginners want commission on falling cotton output
APP
MULTAN:
Central
executive
committee of the Pakistan Cotton
Ginners Association (PCGA) has
urged the government to set up a
commission headed by a retired
judge of the Supreme Court to
investigate the cause of decline in
cotton production.
Presiding over a meeting, PCGA
Chairman Nawab Shehzad Ali
Khan regretted that national
cotton policy could not be framed
so far and approval of the Cotton
Seed
Act
And
Breeders
Proprietary Rights Act was
pending.
He said that Punjab Chief
Minister Shahbaz Sharif should
come forward to save the Rs1.5
trillion cotton economy and fix the
production target at 20 million
bales for the next season.
He asked the government to
provide
farmers
with
wellgerminated and internationally
certified seeds to achieve the
targets. Farmers had suffered a
loss of Rs50 billion this season
and they were forced to sell their
cattle heads to meet their daily
expenses,
he
added.
Wednesday 27th January, 2016
Non-textile exports fall 22pc
THE NEWSPAPER'S STAFF REPORTER
ISLAMABAD: Pakistan’s nonCarpets and rugs exports fell by
textile exports fell by 21.81 per
21.52pc and exports of sports
cent to $4.045 billion during the
goods dipped 3.27pc year-onfirst half (July-December) of
year. Exports of tanned leather
2015-16 from $5.173bn in the
dropped 26.04pc and leather
same period last year, Pakistan
products by 15.56pc.
Bureau of Statistics data showed
Footwear
exports
dipped
on Tuesday.
23.49pc, primarily due to 28.84pc
Product-wise details showed a
decline in exports of leather
decline of 77.47pc year-on-year
footwear.
in exports of overall petroleum
Exports of surgical goods and
products, mainly due to a 99.48pc
medical instruments went up by
drop in petroleum naphtha
4.38pc, while engineering goods
exports. Crude exports also
exports dipped 23.54pc during
declined by 60.64pc.
the period under review.
On a year-on-year basis, exports
of gur declined by 59.84pc,
cement
36.54pc,
handicraft
99.74pc,
molasses
42.84pc,
furniture 32.78pc, gem 58.09pc.
However, exports of jewellery
increased by 0.30pc.
In the food basket, rice (basmati
and
non-basmati)
exports
dropped by 11.04pc. Exports of
oil, tobacco also witnessed a
decline
during
the
period.
However, exports of vegetables,
spices,
wheat
and
meat
witnessed
a
growth.
Wednesday 27th January, 2016
IMF wants 27pc cut in development spending for
meeting fiscal targets
KHALEEQ KIANI
ISLAMABAD: The International
Monetary Fund (IMF) wants
Pakistan
cut
its
overall
development budget by 27 per cent
to keep fiscal deficit within limits
and make up for revenue shortfall
during the current fiscal year.
committed to
consolidation”.
sustained
fiscal
Based on discussions with the
authorities led by Finance Minister
Ishaq Dar, the IMF expected the
government
to
limit
the
development
programme
by
26.56pc or at Rs1.111 trillion
against Rs1.513tr approved by
parliament and four provincial
assemblies in June 2015.
To place the debt-to-GDP ratio on
a firm downward trajectory, bolster
macroeconomic stability, and set
the stage for sustainable and
inclusive growth, the government
assured the IMF to remain
determined to lowering the budget
deficit excluding grants to 4.3pc of
GDP this fiscal year and to 3.5pc
by the end of the IMF programme
in 2016-17, mainly through revenue
mobilisation
and
expenditure
rationalisation across all layers of
government.
For achieving this target, the Fund
has estimated that the federal
government will need to limit Public
Sector Development Programme
(PSDP) expenditure at Rs611bn,
down 13pc, against Rs700bn
authorised by the parliament.
This was aimed at creating the
much-desired fiscal space for
priority spending on infrastructure,
education, healthcare, and targeted
social assistance to improve living
standards and to protect the most
vulnerable segments of society.
On the other hand, the cumulative
annual development plans of the
four provinces would be reduced to
Rs500bn, down 38.5pc against
Rs813bn announced by the four
provincial assemblies.
Towards that end, the government
reported to the IMF that provincial
governments had given in writing to
contain their expenditures and
continue to manage budgetary
spending prudently and strive to
achieve their contribution to fiscal
consolidation.
As part of the IMF programme, the
government has set a limit on the
country’s overall fiscal deficit at
4.3pc of GDP including 0.3pc
expenses for military operations
against terrorists in the tribal region
and resettlement of temporary
displaced persons (TDPs).
To facilitate completion of ninth
quarterly review and secure
disbursement of $500m tranche in
December 2015, the government
had confirmed to the IMF last
month that it had missed budget
deficit target in the first quarter of
2015-16 but promised to “remain
“To assure achievement of our
fiscal targets in 2015-16 and
beyond, the provincial finance
secretaries have agreed in writing
to increase budget surpluses
consistent with the programme,”
the government wrote.
To this end, total provincial
spending will be maintained at
6.5pc of GDP in 2015-16, with total
provincial-own-tax and non-tax
revenues standing at 1.1pc of
GDP.
The finance ministry said the centre
was intensifying interaction with
provincial authorities at a higher
level to arrive at a mechanism to
strengthen the provinces’ fiscal
commitment for 2015-16. It said it
was
also
holding
quarterly
meetings among the federal and
provincial finance secretaries to
review fiscal performance and
coordinate spending priorities to
correct any slippages in a timely
manner.
Moreover, the government planned
to again prepare contingency
measures as needed and reduce
expenditure allocations in the first
nine months of the year compared
to the budget to create a fiscal
buffer against any deviation away
from the IMF programme target.
The government also promised that
additional budgetary spending as
result of the reclassification of
some non-plan loans (0.1pc of
GDP) will be made through reallocation
of
existing capital
expenditure plans, including at the
provincial level. The additional
budgetary spending related to the
new agricultural spending package
(0.1pc of GDP) will be absorbed
within recurrent spending.
The government also committed to
continue working towards reducing
energy
subsidies
(including
amounts for arrears clearance) to
0.4pc of GDP in 2015-16, from
0.8pc in 2014-15. To protect
against
a
potential
negative
outcome of legal challenges to
electricity
surcharges,
the
government will take mitigating
measures
as
necessary.
Wednesday 27th January, 2016
Cotton prices steady
THE NEWSPAPER'S STAFF REPORTER
KARACHI: Activity on the cotton
Association (KCA) members were
market on Tuesday remained
busy in attending a two-day
moderate and prices were also
workshop arranged by the
steady. However, spinners were
International Cotton Association
cautious towards building up their
(ICA) in Karachi.
stocks owing to depressed
The workshop is aimed at
demand for cotton yarn.
creating awareness about dispute
Floor brokers said that globally
settlement and arbitration in world
the cotton trade is moving slow
cotton trade. ICA President Jeanand major world cotton markets,
Marc Derossis and Managing
including China, India and New
Director Kai Hughes also visited
York, are witnessing fall in prices.
the KCA and met executive
committee members.
The attendance in the trading ring
was very thin as most of the
Brokers said that there is an
brokers and Karachi Cotton
acute shortage of quality lint and
spinners
generally
become
disappointed when they fail to get
deals of their choice. But the
current crisis faced by textile
industry and falling exports are
depressing demand for cotton.
The KCA left its spot rates
unchanged. A daily market report
about the deals transpir ed on
ready counter was not released
by the association, but brokers
said that a couple of big
transactions
originating
from
needy spinners were reported.
THE FOLLOWING ARE THE KCA OFFICIAL SPOT RATES FOR 2015-16 FOR LOCAL
DEALINGS IN PAK RUPEES FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
Rate
Ex-Gin
Upcountry
Spot Rate
For
Price
Expenses
Ex-Karachi
37.324 Kgs
Equivalent
5,400
135
5,535
40 Kgs
5,787
145
5,932
Wednesday 27th January, 2016
Wednesday 27th January, 2016
Installation of value-added machinery for boosting
exports
KARACHI: Junaid Esmail Makda,
President of the SITE Association
has stressed upon the installation
of value-added machinery at
industrial units for enhancing
exports.
He was addressing as chief guest
at the inaugural session of the
three-day
13th International
Trade and Industry Fair (ITIF) at
Expo Centre on Tuesday.
He said the ITIF can play a vital
role in the installation of
international
value-added
machinery at the factories for
increasing
production
and
exports,
and
stressed
for
adjusting to the rapid progress in
high-tech
computerised
technology.
“The
event
provides
entrepreneurs and businessmen
from all over the world, an
opportunity
to
witness
the
potential for investment and
growth in the oil and gas, natural
petroleum resources, renewable
and alternative energy resources
such as hydro, solar wind,
geothermal, bio-fuel and allied
sectors of Pakistan,” he added.
He said that since its launch, the
ITIF had promoted a positive
image of Pakistan in the
international community.
The
primary focus of the fair includes
incorporating
Power
and
Alternative
Energy
Asia,
Engineering Asia, Auto and
Transport Asia and Oil and Gas
Asia.
“In 10 to fifteen years, old
machinery is obsolete and
requires replacement for most
effective and efficient production,”
he said.
At the event, over 100 companies
are participating with over 200
participants on their booths.
Besides,
over
65
foreign
delegates are also attending the
event.
He said the country was facing a
serious energy shortage and
suggested
alternate
energy
solutions including wind power,
solar energy, and biomass.
ITIF
Asia
aims
to
bring
international
value-added
machinery
manufacturers
in
Pakistan, which not only boosts
exports but also can play its part
in increasing the GDP. It also
contributes in the field of
renewable energy, as every year,
a
number
of
international
companies
display
their
renewable energy products and
solutions, Junaid Makda said.
He said that ITIF Asia focuses on
the investment opportunities in
modernising Pakistan’s industrial
sector by displaying latest
technologies / machineries that
are being developed by the
industrialised
countries
after
extensive
research
and
development.
Makda said the government
efforts to increase the foreign
direct investment through import
of latest machinery would assist
in enhancing the exports.
International
Chamber
of
Commerce National Committee
Chairman Tariq Rangoonwala,
Pakistan
Apparel
Forum
Chairman Mumhammad Jawed
Bilwani, and Korangi Association
of Trade and Industry President
Zahid Saeed were also present
on
the
occasion.
Wednesday 27th January, 2016
Cotton prices remain firm
Cotton prices remained firm for
the second consecutive day on
Tuesday due to slowdown in the
trading activity by spinners,
dealers said.
The Karachi Cotton Association
(KCA) kept the spot rate
unchanged at Rs5,400 per
maund (37.324 kilograms).
Dealers said cotton prices
continued to witness a firm trend
because of decline in the demand
from the spinning mills.
"Textile industries have not been
made successful in securing
fresh orders from the international
buyers so far," Naseem Usman,
chairman of the Karachi Cotton
Brokers Forum, said.
"The trading activity is expected
to remain dull this week, as the
demand for cotton by the
spinning industry could not pick
up momentum," Usman said.
Traders' interest is expected to
continue with buying good quality
lint,
he
added.
Wednesday 27th January, 2016
PCGA urges govt to investigate cause of decline in
cotton yield
APP
MULTAN - Central Executive
Committee of Pakistan Cotton
Ginners Association (PCGA) has
urged the government to set up a
commission headed by a retired
judge of the Supreme Court to
investigate the cause of decline in
cotton
yield.
Presiding over a meeting, PCGA
chairman Nawab Shehzad Ali
Khan regretted that National
cotton policy could not be framed
so far and approval of the Cotton
seed
act
and
Breeders
Proprietary Rights act were
pending.
He said that Punjab Chief
Minister Muhammad Shehbaz
Sharif should come forward to
save the Rs 1500 billion cotton
economy and fix the production
target at 20 million bales for the
next
season.
He said that well-germinated and
internationally certified seed be
provided to farmers to achieve
the
targets.
He said that farmers had suffered
a loss of Rs 50 billion this season
and they were forced to sell their
cattle heads to meet their daily
expenses.
PCGA chairman said that there
were more than 700 registered
seed companies but they had not
agricultural scientist or expert.
The meeting was attended by
Haji Muhammad Akram, Group
Chairman, Ex-Chairmen Haji
Hafeez Anwar, Mukhtar Ahmed
Baloch,
Amanullah
Qureshi,
Mahesh
Kumar,
Sheikh
Muhammad Saeed and member
of central executive committee.
Wednesday 27th January, 2016
‘No progress to ensure basic human rights under EU
GSP+ facility’
Staff Reporter
PESHAWAR - Representatives of
various civil society organisations
have voiced concerns over the
government’s poor initiatives for
ensuring fundamental rights as
per commitment under GSP Plus
status granted by European
Union, giving duty-free access to
Pakistani products to European
market.
Though the exports of enlisted
local manufacturing products
under the Generalized Support
Preferences (GSP+ status) have
grown up by 33 per cent to EU
market, but no progress was
made in ensuring basic human
rights under the EU facility, said
Qamar Nasim, member Civil
Society Networks (CSN) here
while
addressing
a
news
conference at Press Club on
Tuesday.
Flanked by the CSN’s other
members,
Nasim
said
the
government signed an agreement
with the EU in 2014, under which
the EU initiated an evaluation
process regarding government
initiatives and implementation of
more than 27 agreements, under
the facility. He informed that CSN
also submitted an assessment
report to the EU regarding dismal
condition of basic human rights in
the country, which was endorsed
by EU mission in Islamabad.
Wednesday 27th January, 2016
SNGPL admits it can’t meet demand-supply gap
Amid severe domestic crisis, company advises people to minimise use of all gas
appliances
Our Staff Reporter
LAHORE
As the low pressure of gas
continues to hit the domestic
limits of Lahore and other Punjab
cities hard, the gas utility SNGPL
has expressed its helplessness to
meet the increasing demand and
supply
gap.
In reply to growing criticism and
complaints of consumers, the Sui
Norther Gas Pipelines Tuesday
shared data and other relevant
information
regarding
total
availability of gas in its network,
its consumption and demand of
the various sectors. The company
highlighted the need of additional
gas to bridge the gap in demand
and
supply.
SNGPL managing director Amir
Tufial, through a statement,
appealed domestic consumers to
minimize
use
of
all
gas
appliances in order to ensure
provision of gas supplies for
cooking
purposes.
“Please
don’t
use
gas
compressors and heaters since
they are ‘life threatening’,” said
the SNGPL chief Tuesday.
The SNGPL stated: “Over the
past years, demand supply
position of gas on SNGPL’s
system has deteriorated since the
impact
of
new
domestic
connections works out to around
80 to 100 MMCFD annually
during winter months while the
reduction in supplies works out to
around 160 MMCFD each year.
Thus each year, SNGPL faces an
additional
shortfall
of
250
MMCFD.”
The shortfall is bridged through
load management (curtailment) in
different sectors in Punjab,
including but not limited to power,
industry, cement, CNG and
fertilizer sectors, in order to cater
for ‘high priority’ domestic and
commercial
sectors
in
accordance with the Natural Gas
“Allocation and Management
Policy 2005 and its subsequent
amendments. Due to the decision
of Peshawar High Court against a
writ petition invoking Article-158
of the constitution, there is no
curtailment in KP,” explained the
company.
“The gas available for Punjab
(600 MMCFD) is not sufficient to
meet the demand of domestic
and commercial sectors in
extreme winters (around 1000
MMCFD).
Resultantly,
the
consumers that are located
distant from the supply mains
face severe low pressure issues,”
admitted
the
company.
“In order to avert low pressure
due to operational bottlenecks,
the SNGPL has undertaken
system augmentation, looping of
line, re-drilling of service tee,
establishment
of
emergency
teams to resolve low pressure
complaints. Operational teams
are working ‘around the clock’ for
this particular activity. However,
additional gas is required to
enable meeting the demand of
consumers,” SNGPL claimed
The SNGPL said that despite
shortfall,
some
sectors/consumers continued to
get gas even during winter
months. These include the power
and fertilizer sector consumers
which
were
supplied
raw,
permeate or low BTU gas, which
was not fit for supply to other
sectors through SNGPL’s pipeline
network.
“These
dedicated
supplies
typically range from 180 to 240
MMCFD. SNGPL is bound to
supply 15 MMCFD system quality
gas to Engro Fertilizers, under
firm commitment. Cement sector
is being supplied around 12
MMCFD, out of which, around 7
to 8 MMCFD is supplied to the
plants located in the province of
Khyber Pakhtunkhwa. Remaining
4 to 5 MMCFD is mainly supplied
to residential colonies of cement
plants in Punjab since the same
fall under domestic consumers.”
“Some sectors have opted for
supplies of re-gasified LNG
(RLNG) and they included
Rousch, Fauji Kabirwala, Kot
Addu, Saif, Sapphire, Orient and
Halmore from the power sector
and Pak-Arab from fertilizer
sector. A large number of
consumers from industrial and
CNG sectors have opted for
RLNG supplies and are being
supplied RLNG on as available
basis. This shift has contributed
to reduction in the overall
demand supply gap of natural
gas. Domestic sector is not being
supplied RLNG due to its heavy
cost
component.”