Pakistan to repay one billion dollars loan this year: Shaukat

KARACHI: Federal Finance Minister, Shaukat Aziz has said that Pakistan will repay another one billion dollars debt till the end of the current year.

The Finance Minister was speaking at ceremony to award 6th Export Excellence Award Trophy, hosted by Pakistan Ready-made Garments Manufacturers and Exporters Association (PRGMEA).

He assured the business community that the next budget will ensure maximum facilities to traders and investors for bringing more investment in the country and increase exports specially value-addition.

He said the country's exports remained stagnated at around dollars 8 billion during most part of the 1990s. Over the last four years it has moved from dollars 8 billion to dollars 11 billion and this year it is likely to cross dollars 12 billion.

During last two years, exporters have performed extraordinarily as the exports grew by more than 22 percent in the last fiscal while for this year the growth rate is 14 so far, he said.

Shaukat Aziz said notwithstanding these developments, our exports are still highly
concentrated in a few items and go to a few countries, he noted adding, "this has been a major source of instability in the past and unless we diversify our exports in terms of commodities and countries we may not be achieving our potential."

He said it is reassuring for all of us that despite concentration of exports in a few items Pakistan has changed its complexion from being a primary commodity exporting country to a manufacturing goods exporting country. The share of primary commodity exports has declined from 44% to 12% and that the share of manufactured goods exports rose from 45% to 77% over the last two decades.
The Minister also distributed export trophies amongst the PRGMEA members.

The Finance Minister also apprised the business community that a CBR Desk will begin functioning initially at Karachi and Lahore soon to facilitate their community and it will be extended to other cities gradually.

Earlier, Chairman PRGMEA, Tahir Aziz apprised the Federal Finance Minister of the problems specially of DTRE and Sales Tax Refund, faced by the garments manufacturers and exporters.

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Call for continuation of economic reforms

RECORDER REPORT

LAHORE (March 29 2004): "The economic policies of the present government have brought positive changes in the economic set-up of the country. The reforms initiated by the government have led to growth in manufacturing, recovery in agriculture, fiscal deficit reduction, decline in foreign and domestic debts, increase in remittances, upsurge in stock market, and low inflation."

This was the consensus of the speakers at a pre-budget seminar, organised by the Institute of Cost & Management Account-ants of Pakistan (ICMAP) in Lahore.

Asim Zafar, chairman, Lahore Stock Exchange; Shaukat Amin Shah, FCA, former president, Institute of Chartered Accountants of Pakistan; were the guest speakers on the occasion while Lahore Chamber of Commerce and Industry (LCCI) President Mian Anjum Nisar was the chief guest.

The speakers stressed that the existing reforms should continue for the further betterment of socio-economic scenarios in the country.

They suggested that Pakistan should invest more in education to improve literacy rate with the emphasis on technical education. "We should alleviate poverty through micro-credit and job creation. Infrastructure must be developed, and should be more agriculture-oriented", they pointed out.

The speakers also said the national debt should be given priority, and must be retired at the earliest. Moreover, defence capability should be rationalised with more stress on deterrence than aggression, they added.

"We have to indigence industrial production and broaden the tax net besides, documenting the economy. More and more value-added products should be exported, and the budget should be investment and business-friendly", they suggested.

The speakers also pointed out that taxes and duties on raw material and finished goods should be so adjusted so as to make our products more competitive in the national as well as international markets.

They were of the view that the taxation system must be rationalised and the discretionary powers given to tax officers should be more business sympathetic.

It was emphasised that instead of following the western economic system, it would be more appropriate for Pakistan to shape its own destiny based on true Islamic concept of equality and social justice.

Earlier, S.M. Jamil, FCMA, the chairman of the Lahore Branch Council of the Institute of Cost and Management Accountants of Pakistan, presented the address of welcome.

Copyright Business Recorder, 2004

Country’s Economic Situation Has Improved: PM

Updated on 2004-03-29 09:31:31

ISLAMABAD, Pakistan : March 29 (PNS) - Prime Minister Jamali says Pakistan is determined to move from a low income to a middle income country.

Prime Minister Mir Zafarullah Khan Jamali says the country’s economic situation has improved significantly, and Pakistan is determined to move from a low income, to a middle income country. He was speaking at a dinner hosted by the Pakistan-American business association in Islamabad. The prime minister said the re-vitalization and stability of the economy was evident from an across the board improvement, in most macro-economic indicators.

The prime minister said peace and security were pre-requisites for Pakistan’s economic development and prosperity. He said the country had no enemies in its neighborhood, but if something went wrong, Pakistan was able to defend itself. Senate Chairman Muhammad Mian Soomro said overseas Pakistanis could invest in the fields of information technology, real estate, banking, insurance, traditional handicrafts and other sectors. Former governor of Virginia, James Gilmore, said the government and the people of the United States respected the government and people of Pakistan. Office bearers of the Pakistan-American business association, U.S.A., including its chairman, Rasheed Chaudhry and President Hanif Akhter, said the Pakistani community in the United States was helping in the development of business opportunities, for Pakistanis in the U.S. and promoting trade and cultural ties between the two countries.

They said an investment group of overseas pakistanis would be formed shortly for investment in different fields in Pakistan. The prime minister gave a P. A. B. A. Expatriate award to Dr Zaheer Ahmed for his excellent services.Prime Minister Mir Zafarullah Khan Jamali has said that exploration of Thar Coal will supplement the existing energy output in the country, and will give a boost to the economy of Sindh province. He was talking to Sindh minister for communication, works and services, Arbab Ghulam Raheem, who called on him at the prime minister’s house.

Emphasizing the need to further explore energy resources, the prime minister said the government’s future development strategy, would focus on infrastructure development that would ensure accelerated economic growth. This would give a boost to both domestic and foreign investment, create more job opportunities and alleviate poverty. The minister informed the prime minister about infrastructure development projects, including the rehabilitation of roads in Sindh.

The latest political situation in the province was also discussed. Later, businessmen from the United Kingdom, who hail from Gujjar Khan, Mr Iftikhar Chaudhury and Mr. Amanullah, called on the Prime Minister. They thanked the prime minister for providing gas to Changa Mera village of Tehsil Gujjar Khan, out of the premier’s own development fund. The prime minister directed that gas should be provided to eight more villages from the same pipeline

http://www.paknews.com/flash.php?id=14&date1=2004-03-29

Pak-China cooperation to help promote tourism in Northern areas: Khan

BEIJING: Northern areas in Pakistan possess rich potential to become world famous tourist destination, said President Mountain and Glacier Protection Organization Aisha Khan.

Pakistan needs to strengthen its cooperation with China to develop and promote the areas, she said in an interview with APP in Beijing. She suggested that an attractive incentive package should be given to the businessmen and the traveling agencies of the two countries to develop tourism industry.

The tourism potential in the Northern Areas is quite rich.

The beautiful landscape and the unique cultural heritage give the Northern Areas a competitive advantage attracting tourists, she said, adding "Tourism can also play a major role improving the socio-economic life of the local people."

Aisha Khan, wife of Aziz Ahmed Khan, Pakistan's ambassador in New Delhi was in Beijing to attend the UN’s conference on Millennium Development Goals. She appreciated the World Body’s targets to reduce poverty, but said these could only be achieved by exploiting the available resources of a particular area.

She emphasized that the official and private institutions should be fully involved in improving environmental conditions around the mountains’ sits. This could help attract tourists, particularly those from China and other neighbouring countries.

The international institutions should be pay greater attention to check the external security threats, which she said cause great disturbance to the development process, further aggravating miseries of poor people, living in backward areas.

She said Tourism is very important sector, where Pakistan can seek Chinese assistance especially to develop its tourist resorts.

Some Chinese companies might be willing to undertake joint ventures in Pakistan on the BOT basis for the development of country’s tourism industry.

It is highly encouraging that the Chinese Government has already declared Pakistan a favorite destination for the tourists, she added

http://www.hipakistan.com/en/detail.php?ne...=&f_type=source

Pak business sector rapidly builds capacity to meet global trade demands

LAHORE : No Pakistani shipment has so far been rejected because of the security compliance.

This was stated by the Federal Commerce Minister Humayun Akhtar Khan while talking to the local media after addressing the seminar of Pakistan Compliance Initiative (PCI) on ‘security, social & environmental performance’ at Lahore University of Management Sciences (LUMS).

He said that the PCI is a multi-stakeholder forum that brings together business, government and civil society to help the country’s enterprise sector ratchet up their business processes in line with globally recognised standards of supply chain integrity.

He underscored the government’s commitment to compliance with international business standards ensuring that Pakistan’s business sector rapidly builds its capacity to address emerging demands of global trade.

The seminar was attended by the country’s leading business leaders, from the export sector, heads of UN agencies in Pakistan, top federal government officers, key leaders of civil society organisations and representatives of leading foreign brand buyers.

Earlier, speaking at the seminar, Khan said that the compliance issues should not necessarily be deemed as part of WTO.

However, he said that the compliance issues would be more significant by 2005 and some countries may use them as a tool against their competitive countries.

The federal minister said that Pakistan has most of laws on social compliance, which are practical and enforceable under the changing trade regime.

He said the government was also planning to work on issue of standard compliance and hoped that the PCI could assist the government on this issue.

Speaking on the occasion, former Federal Commerce Minister and Chairman PCI Razak Dawood introduced the PCI to the participants and spoke about the goals and mission of PCI.

He said “We have mills in Pakistan that are absolutely world class. We just don’t have more of them. We are beginning now with factories in Karachi and Lahore, but will soon include other exporting regions like Sialkot, Faisalabad and others to join.” It was in Dawood’s tenure as commerce minister that compliance was made a part of the Trade Policy 2002.

lqbal Ebrahim of Al-Karam Textiles delivered a keynote address from the perspective of the industry and highlighted compliance as a business strategy.

President CSCC, an international compliance organisation, Greg Gardner described other compliance initiatives across the world and presented an international situation analysis of issues relating to compliance, with specific mention of C-TPAT the new supply chain security regime introduced by the United States.

Director of the International Labour Organisation Hans Lokollo also spoke on the Pakistan’s global compliance commitments and expectations from civil society.

Representative of the United Nations Development Organisation Onder Yucer addressed the gathering on the UN global compact, a major initiative of Secretary General Kofi Annan that involves the corporate sector in socially responsible interventions.

The PCI is a national organisation open to enterprises of all sizes and all sectors, duly licenced by the Securities and Exchange Commission as a non-profit body. The current membership, comprising Pakistan’s leading companies represents over 2 billion dollars worth of exports.

The PCI’s mandate is to expand its membership by promoting awareness of the current best practice and standards, propagate understanding of the need for compliance among companies, encourage participation in recognised programme, build capacities of company supply chains to become compliant as well as improve image of Pakistan exporters through effective global linkages.

PCI aims to build a credible programme for verifying the integrity of supply chains in Pakistan in line with globally recognised standards of security and social performance.

Dr Faiz Shah, CEO of PCI, describing the immediate targets of the organisation said our priority is to draft a national compliance standard that conforms to international benchmarks. Next we want to begin work on a national compliance database and finally a ranking system, which helps companies pace their progress on compliance systems on the one hand and allows buyers to identify business partners in Pakistan with confidence.’

Drawing legitimacy from multi-stakeholder participation and ensuring transparency of process that allows for independent random verification, PCI has the potential for immediately focusing buyers’ attention to Pakistan.

Lessons from the carpet and sporting goods industries during the 1990s show how critical it is for exporters to demonstrate compliance with buyer’s codes and standards of supply chain integrity. Today, even though entrepreneurs compete well in price, quality and service, they will need to respond effectively to buyer demand for “clean and green” supply chains.

With competitive market forcing a quota free world, Pakistani exporters will risk becoming incompetitive in the attempt to slash prices at the cost of social, environmental and security standards.

The crucial sectors such as cotton and textile products, leather, sports, and surgical goods manufactured by small enterprises, which are a source of almost 70 per cent of its foreign exchange earning, will stand to benefit from global opportunities as they move together towards total compliance with recognised standards of security, social and environmental performance.

The organisation aims for being a 100 per cent compliant export sector by 2010.

http://www.pakistanlink.com/headlines/March04/29/10.html

Quality, productivity and price
to govern world trade in future

By Alauddin Masood

The South Korean authorities informed a member of Pakistan’s parliamentary delegation, during a visit to that country in the mid-90s, that South Korea imported raw cotton worth 10 million dollars from Pakistan and converted that stuff in to manufactures which, through value addition, earned her 10 billion dollars in exports. In other words, Korea earned 9.90 billion dollars through value addition on raw material imports worth $10 million from Pakistan.

Adopting a similar export-oriented marketing approach, China was able to double its per capita income in 10 years, while some developed countries like the UK and the USA took nearly 50 years to achieve that target.
The successive governments in Pakistan had also been endeavouring to increase exports so as to give a boost to the country’s frail economy, alleviate poverty and improve the quality of life of the citizens. However, despite their best efforts, Pakistan’s exports could only marginally increase, crossing $10 billion barrier while, in the past, these had stagnated for some years around $8 to 9 billion.

Against, this we find that the exports of a medium sized company in the developed world or even in the developing countries like South Korea are higher than our annual exports. The main reasons for Pakistan’s poor performance, on the export front, include: the country’s prolonged dependence on tariff protection as well as fiscal and taxation adjustments to achieve the export targets instead of paying serious attention to improving quality and productivity. If we examine the factors that helped some nations to achieve remarkable progress during this period, we will find that they could attain that coveted position by improving their productivity and quality levels - the ingredients essential for increasing exports - in every sphere of life.

On the other hand, according to a working paper prepared by Pakistan’s Planning Commission, the country loses annually some Rs100 billion due to the application of defective and bad production processes/techniques. This loss is almost 16 per cent of Pakistan’s total annual revenue, which is now slightly over Rs600 billion. The low productivity and poor quality were the main factors which, till the recent past, contributed to inflation, adverse balance of payments, poor economic growth and higher unemployment in the country.

Further, the rapid strides in communication, particularly in the IT sector, has virtually turned the planet earth into a global village where it is becoming increasingly difficult for countries to block the inflow of high quality and low cost products produced by other nations or to push their own low quality goods across the borders regardless of tradition of friendship and long trade history with other communities of the world.

Given the situation, the international agencies are now laying new parameters to facilitate international trade. However, the basic theme underlying global trade remains competition. This means that organisations and industries unable to compete and achieve steady growth in productivity and quality are bound to meet their death through stagnation and bankruptcy.

The World Trade Organisation (WTO), established in 1995 as a sequel to these developments, is pursuing policies promoting liberalisation of the economy and also removal of both tariff and non-tariff barriers to trade arising though increase in product cost due to repetition of testing and certification, increased transportation cost and time-consuming inspection visits.

The fast emerging global trade environment promotes harmonisation of standards on the one hand and on the other it lays emphasis on third party certification of goods and services through internationally accredited and recognised systems. In other words, standards, testing, calibration and accreditation services, as per international requirements, will henceforth play a pivotal role in the international trade, while non-compliance to international standards of quality, environment and health will make international trade quite difficult in future.

Further, erosion of quota and preference margins, as a result of WTO agreements, pose serious challenges to developing countries like Pakistan. Free trade and liberalisation demand reduction in tariffs to imports, which in Pakistan’s case are about 20 per cent of the total revenue collections. Tariff reduction can further accentuate the country’s fiscal imbalance thereby increasing dependence on external resource, more so when its imports surpass exports in volume.

Is Pakistan prepared to meet post-2004 economic challenges? This remains the most frequently asked question at seminars and workshops organised on globalisation related issues. The economists maintain that Pakistan is not really ready to face these challenges. For facing these challenges, they argue, the country has to speed up efforts for developing necessary infrastructure, amending its policies and enacting legislation to protect bio-diversity and plant breeders’ rights. In addition, it has to produce more competitively and cost effectively for staying in the world market and to compete internationally.

Pakistan is primarily an agricultural country. Some 70 per cent of the country’s population is dependent, directly or indirectly, upon agriculture, while 50 per cent of its labour force is engaged in agriculture. The country derives 80 per cent of its foreign trade earnings from the export of its three main crops. Cotton alone contributes over 60 per cent to Pakistan’s foreign trade. While Pakistan produces 10 per cent of the total global production of cotton, it has only two per cent share in the global trade, as per international textile quotas.

Cognisant of the fact that under post-2004 global trade dispensation, only quality, productivity and price will determine the market access, Pakistan government has taken several steps to meet the post-2004 challenges of globalisation, making a beginning with the establishment of a couple of regulatory agencies, including Pakistan Standards and Quality Control Authority and Pakistan National Accreditation Council (PNAC), for the promotion of quality standards in Pakistan.

Of these, PNAC certifies and grants accreditation to laboratories, in various fields and disciplines, which conform to the national or international quality standards. It has developed accreditation services, aimed at improving the competitiveness and capability of clients to carry out specific tasks related to conformity assessment in accordance with ISO guides, national, regional or international standards.

Accreditation facilitates trade, both within and outside the country, due to increased confidence of the customers and consumers. However, the lack of accredited testing, calibration and certification facilities in Pakistan can affect our exports. Maximum efforts and resources, therefore, need to be allocated by the concerned agencies of the government, exporters and other stakeholders for preparing themselves for the future challenges of trade. The exigency of the time calls for the strengthening, upgrading and preparing the country’s laboratories and other conformity assessment agencies, both in the public and private sector, to secure accreditation to international standards.

As far as Pakistan’s biggest foreign exchange earner - cotton - is concerned, the phasing out of the multi-fibre arrangement, on December 31, 2004, resulting in quota abolition, should naturally go to the advantage of cotton producing countries like Pakistan. Apparently, those countries can increase their earnings from cotton trade, but this can become a reality only if they could produce clean and contamination free cotton and also maintain its moisture level within permissible limits.

For achieving these objectives, the government promulgated Cotton Standardisation Ordinance, 2002, while PNAC has the mandate to accredit laboratories, including fibre-testing laboratories, equipped with high volume instruments, for the instrumental valuation of cotton. These steps aim at meeting the future marketing requirements through necessary administrative and operational arrangements so as to ensure implementation of cotton standardisation and grading programme.

Since the production, processing, marketing and trade of cotton is in the private sector, the growers would henceforth be required to ensure not only clean picking of cotton but also maintaining its moisture content within the permissible limits. As far as ginners are concerned, they would be required to purchase raw cotton on the basis of grades, paying a premium for better grades, and also put grade and staple markings on each bale of cotton. Likewise, the spinners and exporters would now buy raw cotton on the basis of grades and staple rather than its variety or station of origin. This mechanism would ensure better price for better grades and staple and thus motivate all stakeholders to concentrate on quality, grades and staple.

It goes without saying that sustainable development of agriculture, which remains the single largest sector of Pakistan’s economy, is vital for the socio-economic well being of farmers as well as for the progress and prosperity of the country. If farmers follow WTO standards in agricultural production, they have bright prospects for increasing their income and Pakistan enhancing its agricultural exports in the years to come. Non-compliance to WTO regulations, on the other hand, could mean increase in barriers to trade, loss in market share and the country’s exports.

http://www.jang.com.pk/thenews/mar2004-wee...-03-2004/p3.htm

What is driving the stock market?

Having crossed the 5,000 mark last week, the KSE-100 index is now on its way to the 6,000 mark. Not that there won’t be hiccups along the way. In fact, we saw one such hiccup on Friday when the index rose to 5,140 at one point during the day’s trading before dropping to 5,117.88 at the end of the day. Even so, the overall trend is upwards, as it has been for the last two years - a period which has seen the Karachi stock market become one of the best performing markets in the world.

The question is: what is driving the stock market? It’s certainly not buyer interest in new stocks, because there aren’t any new stocks. There have been only two or three IPOs in the last two years, though there has been good investor response to the unloading of some government shares in the state-owned National Bank of Pakistan and the Oil and Gas Development Company. Both the offerings were heavily oversubscribed.

That, however, still does not explain buyer interest in the market. Indeed, one reason why the NBP and OGDC offerings were so heavily oversubscribed was because there have been so few IPOs in recent years, presenting investors with very few opportunities to get in on new offerings on the ground floor before buyer interest pushed share prices upward.

The boom in the market is partly explained by the fact that bank interest rates have been slashed to all-time lows, allowing investors to borrow money cheaply and invest it in stocks. The improvement in the country’s macro economic indicators in the last three years has also contributed to investor confidence in the market.

Another factor driving the market is short-term speculative buying, with investors holding on to stocks sometimes only for a few days or weeks before selling them to cash in on price gains. That’s why up to 70 or 80 per cent of all trading in the market is confined to a few high-performing stocks.

This has allowed some speculative buyers to make a lot of money. But if such investors were to become the main force driving the market, it could lead to the creation of a stock market bubble that might burst one day.

For long-term stability, the market needs investors who are prepared to hold on to stocks for extended periods of time and not dump them for the sake of short-term gains.

But for that to happen, several other things have to occur first. For one thing, entrepreneurs setting up new industrial and commercial ventures, or planning to expand existing operations, will have to come back to the stock market to raise capital, rather than resorting to other means to finance their ventures, such as issuing participation term certificates (PTCs).

In recent years, quite a few public companies have even opted to have themselves de-listed from the stock exchange, preferring to raise capital through the private placement of shares or through low-interest bank loans. Unless this trend is reversed, the number of IPOs on the market is likely to remain very low.

To put this into perspective, it should be remembered that through most of the 1960s, new share offerings averaged about 40 a year. Following the advent of the Z. A. Bhutto government in December 1971 and its nationalisation of many industrial and commercial sectors of the economy, the number of new share offerings fell to an average of five or six a year.

Though the situation improved somewhat in the 1980s and 1990s, it did not improve by very much and new share offerings continued to be few and far between. That is still the case today, all the talk about the revival of investor confidence in the economy notwithstanding.

http://www.jang.com.pk/thenews/mar2004-wee...-03-2004/p4.htm

India's Ecgc Upgrades Pakistan's Country Risk Rating

MUMBAI, March 24 Asia Pulse - The Export Credit Guarantee Insurance Corporation of India (ECGC) has upgraded Pakistan to the second highest country rating category (A2), indicating an improved economic and political climate for bilateral trade and lower insurance premium costs.
After new initiatives (for peace and improved relations), the corporation has upgraded Pakistan by two notches to A2 and the premium rates for export insurance for India's neighbour would be lower compared to what were charged before, ECGC officials said.

Now Pakistan has been brought on par with other South Asian Association for Regional Cooperation (SAARC) nations, making it easy to manage operations, they said.

ECGC has also upgraded Libya to the B1 level after conducting a review of the economic climate, one official said.

Economic conditions have improved in Libya and India was targetting African states to promote our exports, he added.

Meanwhile, the corporation is planning to introduce an export consignment policy for stock holding agents and subsidiaries abroad for improved export credit risk coverage.

http://sg.news.yahoo.com/040324/16/3izoy.html

Budget will focus on foreign investment, says Shaukat Aziz

KARACHI: Federal Finance Minister Shaukat Aziz has said that an increase in foreign investment will be the central point of the coming budget, adding that Pakistan’s exports had increased 14 percent as compared to the last year.

Speaking at Pakistan Readymade Garments Manufacturers and Exporters Association’s Sixth Export Excellence Award function on Sunday, Mr Aziz said Pakistan’s exports had been increasing for the last four years, and they would reach up $12 billion by the end of current fiscal year.

“The exports have witnessed an increase of 14 percent as compared to the last year with a two-third share of the textile sector,” he said.

He hoped that Pakistan would come 5th position in the top 20 textile exporters. Presently, Pakistan is number 9. “The government is helping industrialists promote textile exports. There are many opportunities to increase readymade garment exports, but it demands better quality,” Mr Aziz said.

The finance minister said the government would help provide infrastructure to industrialists to attract foreign investment. —NNI

http://www.dailytimes.com.pk/default.asp?p...9-3-2004_pg7_31

Thar coal is vital to Pakistani economy: PM

ISLAMABAD: The prime minister met Sindh Communications and Services Minister Arbab Ghulam Rahim on Sunday and said it was important for the country to explore more energy resources.

Zafarullah Jamali Khan said the exploration of Thar coal would increase the current energy output and Sindh’s economy. “Our future development strategy will focus on infrastructure development to ensure an accelerated economic growth.

This will boost our domestic and foreign investment, create more jobs and alleviate poverty,” Mr Jamali told the minister.

Mr Rahim told the prime minister that his government was running a string of development projects, including roads, in Sindh. The latest political developments in the province also came up for discussion.

Later, businessmen from Gujar Khan, Iftikhar Chaudhry and Amanullah, met Mr Jamali and thanked him for the new gas supply to Changa Mera Village in Gujar Khan Tehsil. —Online

http://www.dailytimes.com.pk/default.asp?p...9-3-2004_pg7_58

EU frames new rules for basmati rice imports

By Noshad Ali

LAHORE: Dr Mark Woolfe, director of the Food Standard Agency (FSA) of the European Union, has finalized a Code of Practice on Basmati Rice which is a new code for rice imports to the EU and the FSA has sent new code to local traders soliciting their comments.

Formal approval for the new code is expected to be given by the working group in next meeting that would held on May 14 at London.

Sources said a meeting was held in London on March 17, attended by representatives of the Rice Exporters Association of Pakistan (REAP), Export Promotion Bureau and All India Rice Exporters Association (AIREA).

According to new rules, ‘Product of Pakistan’ could only be written on basmati rice pack or bags if it includes at-least 97 percent of basmati grains of the same country.

The basmati would be considered in which there would 93 percent pure basmati grain and the consignment would not be cleared if there would be more than 25 percent broken grains in the basmati consignment.

Industry sources said that from a list of around 73 new varieties sent for approval, Pakistan would be able to export around 52 different historical land race (HLR) basmati varieties in the future whereas around 20 more varieties could further be included in the permission list for Pakistan if it will provide documentation or record that those 20 varieties belongs to the same land.

“Indian Basmati that was presented to be the supreme quality basmati before the world is as same as Pakistani basmati and now India would only be able to export its six varieties to the EU,” a source said.

http://www.dailytimes.com.pk/default.asp?p...28-3-2004_pg5_5

Pakistan Attracts More Egyptian Investments

ISLAMABAD, Pakistan: An important economic delegation from Egypt is due in Islamabad next week to explore possibilities of expanding Egyptian investments in Pakistan, mainly in the fields of Telecommunication, Information Technology and Tourism.

The President of ORASCOM Telecom-Egypt, and major Partner of MOBILINK- Pakistan, Mr. Naguib Sawiris, will head a large delegation of businessmen from Egypt in a 3 day official visit.

In an interview, the Ambassador of Egypt to Pakistan Hisham El-Zimaity, said that Pakistan was an investment friendly country, and that Completion of the process of return to democracy which materialized with the Recent Senate elections further enhanced the stability of the market and Its credibility.

"It will definitely help more investors from Egypt & other countries to consider expanding their activities in Pakistan," he said.

Hisham El-Zimaity said that Pakistan and Egypt were brotherly Countries and the two Governments were committed to take cooperation to higher grounds by encouraging the private enterprises to consider working with partners in the two countries.

The projected increase of Orascom investments in Pakistan by US $150 in 2003 and another by US $ 250 million in 2004 was an excellent example of true will and determination for more cooperation between the two countries.

He said that Pakistan and Egypt were both members of the D-8 (the group of most developing Muslim countries) and were committed at the highest level to ensure their cooperation gets solid and beneficial to both sides.

The Ambassador of Egypt also said that more delegations from Egypt are due in Pakistan within the coming months to open new vistas and explore ways and means to further cooperate in different fields.

ORASCOM, was founded in 1950, and is one of the largest Holding companies in Egypt, with investments above US $ 2 billion and Current operations in 21st country, in the fields of industry, construction, education, Information Technology & Telecommunications, as well as tourism and hotel management.

It operates Mobile networks in many countries such as Egypt, Pakistan, Algeria, Tunisia, Yeman, Zimbabwe, Congo, Chab, Lebanon and Syria.

It also runs a series of luxurious hotels and fine restaurant as well as sea resorts mainly on the Red Sea and other parts of Egypt.

Mr. Sawiris visited Pakistan before and is happy to be back to work together With officials to further cooperate and expand activities in the country.

PIA evolves new marketing strategy

KARACHI, March 09 (Online): With the induction of Boeing 777-200, ERs, Pakistan International Airlines (PIA) has evolved a new marketing strategy which aims at enhanced revenue generation for the national carrier and to facilitate ticketing and reservation procedures for its valued customers.

In order to implement effectively the new policy, PIA has revamped its marketing department throughout its domestic network.

The position of three field General managers of Punjab, Balochistan and Sindh have been abolished. Consequently, District Managers will be responsible for their respective areas and will report Head Office directly.

General Manager (Punjab) Lt. Col (Retd) Talat Oman has been reassigned duties as General Manager Investigators (North), General Manager Balochistan; Salman Javed will relinquish additional charges as General Manager Balochistan and continue working at Head office as General Manager, Passenger Sales.

A fresh criteria for Sales promotion Officers throughout domestic network has been evolved under which all those SPO’s who have completed their five years at their present positions have replaced.

The Sales Promotions Officers have been given sale targets to be achieved within the specified time period.

Postings and transfers at foreign stations are also in the pipeline.

The changes in the marketing set-up have been made the new challenges ahead. The new marketing plan envisages route re-structuring flight rescheduling start of operations to Houston and Shanghai from May this year and increase in the number of flights to UK and India.

http://www.paktribune.com/news/index.php?id=57420

Islamabad agrees to FTA status for Dhaka

DHAKA: Pakistan agreed to give Bangladesh special trade preferences under a free trade agreement (FTA), concluding two days of bilateral talks on Monday.

Bangladesh also sought longer time than Pakistan to phase out tariffs under the FTA and immediate free entry of its products to the Pakistani market. Elias Ahmed, joint secretary of the Bangladeshi Ministry of Commerce, and his Pakistani counterpart, Jafar Iqbal Qadir, led their sides in the talks. “Pakistan proposed the FTA and Dhaka responded positively. Luckily, we reached a consensus on most issues during today’s discussion,” Mr Qadir told journalists. He said tariff phase-out period, reduction of direct tariff and elimination of non-tariff barriers were the focus of the discussion. “The trade gap tilts in favour of Pakistan. But we think trade volume between the two countries should increase,” Mr Ahmed said after the meeting. According to sources who attended the meeting, Bangladesh had proposed free access to Pakistani products 12 years after signing the FTA, while Islamabad was asked to open its market one year after the deal. “However, Pakistan did not agree to this proposal,” sources said.

Islamabad earlier allowed duty-free access to a limited quantity of jute and tea from Dhaka. Bangladesh demands unlimited market access.

PICIC emerges as high profitable organization: Khoja

KARACHI, March 28 (Online): Managing Director Pakistan Industrial Credit and Investment Corporation (PICIC) Muhammad Ali Khoja has been made a high profitable organization in the country.
He expressed these views here on Saturday while addressing the participants of NIPA course in financial management and budgeting, who visited the head office of PICIC.

Talking about PICIC vision 2005, he said that leasing company, commercial bank and mutual funds have been added to the fold of PICIC since 2000.

The idea of PICIC vision has been derived from the vision of the father of nation Quaid-I-Azam Muhammad Ali Jinnah about Pakistan, he said.

The consumer banking, he said, has been launched in a big way offering housing loans.

http://www.paktribune.com/main/index.php?id=13&newsId=59732

Foreign Reserves Reach Record Level
Updated on 2004-03-29 09:47:45

ISLAMABAD, Pakistan : March 29 (PNS) - The foreign reserves have risen to twelve point five billion dollars which is the highest ever record in the history of the country.


This was stated by Governor State Bank, Dr. Ishrat Hussain, while talking to the Radio Pakistan's Lahore representative Muhammad Abrahim Kawan on Sunday. To a question, he said there is a congenial and peaceful atmosphere in the country for investment.

http://www.paknews.com/business.php?id=1&date1=2004-03-29

ASAP Global Sourcing Show: 'Focus Country' status offered to Pakistan

RECORDER REPORT

ISLAMABAD (March 30 2004): 'ASAP Global Sourcing Show' has offered certain incentives to Pakistan for the promotion of garments' exports through participation in the show to be held in Las Vegas, USA, during August 2004. The offer has been made to the Export Promotion Bureau (EPB).

According to details revealed here on Monday, ASAP is the largest garment sourcing show held in the United States and textile-exporting countries are planning big national pavilions to popularise their products in the US market.

The 'Focus Country' status would give Pakistan several free-of-cost benefits, which include premium show floor location, special media coverage of Pakistan pavilion, special mention in the pre-show marketing campaign, full page colour advertisement in ASAP Sourcing Guide, specific marketing of Pakistan's sourcing strengths, etc.

The EPB has spent more than $95,000 for getting 'Focus Country' status at the APLF being held at Hong Kong in March 2004 while the ASAP offer is without any financial implication.

Textile products constitute more than 65 percent of Pakistan's total exports and the United States is the largest importer of textile garments from Pakistan.

The United States textile import regime, so far regulated by Multi-Fiber Agreement (MFA), will undergo a radical change in 2005 with the removal of textile quotas.

Under the quota regime, US importers have been constrained to import from countries having textile quotas; after 2004, they will be free to import from the most efficient producer regardless of his geographical location. It will lead to a healthy competition amongst the supplying nations.

In post-2004 era, the share of different textile exporting countries in the US textile market will be quite different from what it used to be. The market share will be determined by (i) efficiency in production and (ii) efficacy of marketing strategy.

With the countdown to 2005 growing louder and more intense, textile-producing countries have intensified their marketing campaigns in the US for maximum penetration in the post-quota market.

The 'Focus Country' status in the ASAP gives a significant advantage to Pakistan vis-à-vis her competitors.

The ASAP August 2004 provides an excellent platform to garment producers to make an effective presentation at the time when most of the US buyers will be making their buying decisions for 2005.

Featuring as a 'Focus Country', Pakistan would be able to present and establish its status as the leading producer of textile garments.

The EPB has invited applications from textile exporters for participation in the ASAP and several textile exporters have contacted the bureau for participation.


Copyright Business Recorder, 2004

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More steps to be taken to attract FDI

RECORDER REPORT

KARACHI (March 30 2004): Federal Finance Minister Shaukat Aziz said in Karachi on Monday that the government would take more steps to attract more foreign direct investment (FDI) into the country.

Addressing the Overseas Investors Chamber of Commerce and Industry (OICCI), he said that the flow of FDI in Pakistan has been around 600 million dollars. This, he added, should be seen in the context of the general trend of FDI in the region, which has been low.

He asked the OICCI to suggest ways and means to check the menace of under-invoicing.

The Chamber should also jointly address the issue of preferential Trade Agreement and Forced Trade Agreements and enter into dialogue with the Government, he added.

Shaukat gave figures for seven months of the current fiscal year. He said: "Water availability and fertiliser offtake have improved considerably, as a result of which growth in the agricultural sector is as per target of 4.3 percent per annum. Cotton, wheat, rice and sugarcane crops have all shown good gains.

This will result in Rs 65 billion increase in income in the rural areas, primarily because of the increase in cotton support price."

Manufacturing sector also has been very buoyant and has grown at the rate of 15 percent per annum. As a result of all this, the GDP is likely to grow by 5.5 to 6.0 percent per annum.

Inflation has been contained to about 4 percent. There has also been manifold increase in credit availability to private sector. Market capitalisation has also improved and the PE ratio is around 12, he said.

Inward remittances are expected to be around $3.5 billion. The flow of FDI into Pakistan has been around $ 600 million.

This has to be seen in the context of the general trend of FDI in the region, which has been low, he added.

The minister agreed with the chamber proposal that more needs to be done to improve the overseas perception of Pakistan.

In his address of welcome, OICCI President Farooq Rahmatullah acknowledged the tremendous achievements in respect of the economic reforms agenda. He also pointed out measures that are needed to make Pakistan more investor-friendly.


Copyright Business Recorder, 2004

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TRG buys fifth US call center

RECORDER REPORT

KARACHI (March 30 2004): The Resource Group (TRG), the largest IT enabled service company in Pakistan, has concluded an acquisition of A Alpha Answering Services Inc (A Alpha), which a US provider of telephone answering services located in Temecula, California.

The TRG has made this acquisition through an equity investment in its existing portfolio company, Central Voice, LLC (central voice), which is the entity that, in turn, has acquired the assets of 'A Alpha'.

This transaction represents TRG's fifth acquisition in the US call center services industry and fourth since November 2003.

With the 'A Alpha' acquisition the annual revenue of TRG's portfolio company, Central Voice, has increased by about 30 percent to about $4.2 million, according to a notice issued by the TRG to the Karachi Stock Exchange (KSE) on Monday.

The Central Voice will integrate all A Alpha accounts to its existing facilities in New York and New Jersey, which will result in significant overhead savings. Through this acquisition, he Central Voice will expand its geographical reach to the Western Coast of the US, making it one of the largest nation-wide telephone answering service operations in the country.

The TRG employs an innovative business model, which consists of taking controlling stakes in US call center companies and shifting their operations to its offshore facility in Pakistan. Currently, it employs nearly 150 people at its 10,000 square feet facility in Lahore.

"The 'A Alpha' transaction illustrates the flexibility and robustness of the TRG business model", said TRG Chief Executive Officer Zia Chishti, adding: "This is our second acquisition that has been channelled through a portfolio company and recognises the increasing options available to us as we grow the TRG family. I am extremely pleased to welcome 'A Alpha' into TRG, and trust that together with our partners at the Central Voice, we will be able to realise significant value through our compelling business model".

"The acquisition of 'A Alpha' is the perfect illustration of the TRG value proposition for us", said Central Voice LLC President Thomas Halton, adding: "In the case of 'A Alpha', the Central Voice provided the ideal platform for the TRG to leverage its unique combination of capital resources and offshore service delivery".

Halton has co-invested along side the TRG in the 'A Alpha' transaction, and maintained his 10 percent stakes in the Central Voice.

The TRG is listed on the Karachi Stock Exchange, having raised a total of Rs 600 million in an initial public offering in May 2003, and is in the process of issuing a two for 1 rights shares of Rs 1.44 billion.

The proceeds of these funds are being utilised towards acquisitions of US call center companies as well as the build out of Pakistan-based infrastructure.


Copyright Business Recorder, 2004

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New rules to make Sales Tax refund
more exporter-friendly

Sohail Sarfaraz

ISLAMABAD (March 30 2004): The new 'Sales Tax Refund Rules 2004' will be instrumental in giving preference to exporters under Gold/Silver categories available as per existing rules, making the refund procedure more exporter-friendly.

Moreover, the exporters with more volume of export per annum will be given preference in issuance of refund as compared to those with less volume.

The CBR will also give high rating to exporters who secure earlier registration as compared to newly registered persons.

Official sources told Business Recorder here on Monday that the new refund procedure would not have categorisation of exporters as 'Gold' or 'Silver', etc for payment of refund. But the CBR will definitely give preference to those exporters who were operating under these categories as per existing rules.

Under the new parameters, claimants will be categorised on the basis of past record, annual turnover and overall status of exporter under the existing rules. The exporters with Gold/Silver categories will be considered as low risk under the new rules and could be given green channel facility for speedy payment of refund.

The CBR will shortly discuss these parameters with export associations and representatives of trade bodies.

The parameters will be fed in department's computers for categorisation of exporters as high risk or low risk for issuance of refund through different channels like green, yellow and red.

The CBR has given March 31 as deadline for comments on new refund rules. However, according to sources, no association has proposed any major change in the new rules.

The exporters have opposed comprehensive documentation, including submission of bills of export and bills of lading/airway bills etc under new rules.

The CBR will also verify the authenticity of export documents pertaining to South Africa, UAE and Saudi Arabia under refund procedure 2004, whereas exports to other countries will be treated as low risk on the basis of past record of exporters.

CBR will assign high-risk 'Yellow Channel' or 'Red Channel' to exporters of textile products to UAE, Saudi Arabia and South Africa, and claim sales tax refund against over-valued exports to these countries.

In case of exports to European Union (EU) and the United States of America (USA), the genuine exporters would be able to get refund within 24 hours using 'Green Channel' facility as per refund rules 2004.

As per rule 6 of the proposed refund rules which deals with scrutiny of refund claims-On receipt of the refund claim, it shall be uploaded in Sales Tax Automated Refund Repository (STARR) computer system, which will assign it a unique claim number, process it automatically on the basis of parameters approved by the Board, and assign it to either 'Green', 'Yellow' or 'Red' channel.

The refund cases will be put in high/low risk categories after scrutinising computer profiles of exporters for determining whether refund should be paid promptly or after comprehensive audit.

Following this procedure, commercial exporters and manufacturers-cum-exporters will be declared as Low Risk, Medium Risk or High Risk after going through the profiles of exporters stored in 'STARR refund automation program'.


Copyright Business Recorder, 2004

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Faysal Bank earns Rs 2.15 billion
net profit in 2003

RECORDER REPORT

KARACHI (March 30 2004): Faysal Bank Limited has earned the profit highest amongst banks in Pakistan as Rs 2.15 billion after tax in the year 2003.

Faysal bank held its Annual General Meeting of shareholders on Monday, which was chaired by the Director of the Bank Sanaullah Qureshi and member of its audit committee.

The Bank's earnings per share grew by 227 percent over the previous year to Rs 8.12 per share. All financial indictors showed an upward trend with deposits growing 28 percent and financing 34 percent.

The 2003 annual audited accounts and financial reports of the bank were presented for approval.

The shareholders unanimously approved the same, highly appreciating the performance of Faysal Bank and profit it made during 2003.

The rating of the Bank based on its 2003 performance was further upgraded to AA for the medium to long term and stands in excess of Rs 5 billion at close of 2003.

The shareholders unanimously approved the distribution of a 20-percent final cash dividend and 10 percent bonus shares in addition to 25 percent interim cash dividend already paid by the Bank to its shareholders.

The Bank from 11-branch network in 1999 grew to 30 branch strong with plans to have 50 branches by end of 2004.


Copyright Business Recorder, 2004

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Advance tax collection to go by June 2005

* Over Rs 25b is raised through advance collection and withholding refunds

ISLAMABAD: Abdullah Yousaf, chairman of the Central Board of Revenue (CBR), has set a June 2005 deadline to eliminate advance tax collection and delay in refunds, an official said here Monday.

In a recent series of collectors conferences and interactions with senior tax officials, Mr Yousaf made it clear to the tax managers that from June 2005 CBR would not allow advance tax collection and withholding of refunds of the business community, he said.

Advance tax collection and withholding of billions of rupees worth of refunds of businesses every year enable the tax authorities to meet ambitious annual targets of revenue collection, but create liquidity problems for businesses.

The official said every year in December and June CBR officials resort to advance income tax and sales tax collection from public and private companies.

He said more than Rs 25 billion is raised through advance tax collection and by withholding refunds of exporters, importers and manufacturers.

In the current fiscal, the tax authorities may again repeat the long-standing exercise of raising advance tax and also delaying the refunds of the business community to achieve the Rs 510 billion target. But from June 2005 neither there will be advance collection of income tax, sales tax nor delay in refunds, he added.

The CBR official pointed out that for the past many years the business community of the country had been demanding the payment of refunds without the traditional delay.

He said that the task of abandoning advance tax collection and eliminating delay in refunds seems very difficult, but it can be achieved in the existing scenario as all the sectors of economy are showing strong performance, leading to a sharp increase in tax revenue collection in this fiscal.

Growing exports, imports, industrial production, credit provision by banks to companies and consumers have had a positive impact on revenue collection.

The official also said that during recent meetings the tax managers have assured the new chairman CBR of the elimination of advance tax collection and delay in refunds. The tax officials have also assured the CBR chief that the current target of Rs 510 billion would be achieved by June.

The CBR has recorded a sharp increase in tax revenue in the first eight months of this fiscal because of improved economic activity. Total revenue collection in July to February this fiscal stood at Rs 310 billion that is Rs 12 billion above the required target of Rs 298 billion. —JM

http://www.dailytimes.com.pk/default.asp?p...30-3-2004_pg5_4

NPO, WCCI sign MoU

LAHORE: The National Productivity Organization (NPO) of the ministry of industries and production and the Women Chamber of Commerce and Industry (WCCI) has signed an MoU to undertake initiatives regarding the provision of assistance to the women entrepreneurs. A press release issued here Monday said that the MoU would help entrepreneurs in the required areas like technical, marketing, financial, management, regulatory, environment, productivity and quality, promoting and developing institutional networks with other micro, small and medium enterprises (MSMEs) linked organisations to share and use research information in order to further strengthen and support MSMEs. Umar Aftab, the chief operating officer of WCCI, said NPO would provide sector-specific technical training to MSMEs based on identified needs and would facilitate in skills up-gradation, as the assistance would be provided under the Asian Productivity Organization’s (APO) Technical Expert Services (TES) programme. The WCCI would identify export-oriented sectors and entrepreneurs problems where technical assistance under APO TES programme would be needed, he added. —Staff Report

http://www.dailytimes.com.pk/default.asp?p...0-3-2004_pg5_21

Pakistan Has Potential To Rise As Developed Nation: Musharraf
Updated on 2004-03-30 08:01:03

LAHORE, Pakistan : March 30 (PNS) - President General Pervez Musharraf on Monday said that Pakistan possessed all the Potential to rise as a developed nation of the world and realize its rightful place in the comity of nations.

Addressing the Garrison armed forces offices at Corps Headquarters here, he said that there was a need for putting our acts together to convert the country into a modern, progressive and dynamic Islamic welfare state. Musharraf also underscored the need for moving forward on the path of progress and avoid falling into the pitfalls around us.

He said that Islam was being wrongly projected as a religion of extremism, fundamentalism and intolerance and added that Pakistan had an important role to play in dispelling such global misconceptions about the great religion Islam and the country. The President said that a handful of extremists would not be allowed to play with the fate of this country.

He reiterated that measures were being taken to apprehend these extremists and the few people harbouring and providing them sanctuary. The President also spoke about the steps taken for economic revival, good governance and poverty alleviation within a short time span of only four years. He said that a comprehensive strategy had been evolved to restructure the armed forces on modern lines taking into consideration the requirements of all three services.

Earlier, on his arrival at the Corps Headquarters, President Pervez Musharraf was received by Corps Commander, Lieutenant General Shahid Aziz, who then introduced the officers of the Corps to him. Later, the President met the Corps Commander in his office and discussed matters of professional interest.

http://www.paknews.com/top.php?id=1&date1=2004-03-30

Speedy Development Of Petroleum Sector Playing
Key Role For Reducing Unemployment
Updated on 2004-03-30 09:37:28

ISLAMABAD, Pakistan : March 30 (PNS) - Minister for Petroleum and Natural Resources, Ch. Nouraiz Shakoor Monday said that government is according top priority for the speedy development of petroleum sector as it played a vital role for reducing unemployment and poverty in the country.

He stated this while talking to a delegation of businessmen which called on him to discuss matters pertaining to investment opportunities in the oil and gas sector. The Minister said as result of continuation of policies and concrete steps taken by the government, a sizeable investment was attracted in the oil, gas and mineral sector during the last one and a half year.

"This investment not only helped the government to repay the foreign debts but also put the country on the road to self-reliance," he added. About facilities for potential investors, he said Government would continue to provide maximum facilities and cooperation to them in the oil and gas exploration activities both in the off-shore And on-shore areas. Nouraiz Shakoor said there has been a speedy growth of CNG industry in the country for the last couple of years which brought in an unprecedented investment in this sector.

More than 450 CNG stations have been set up in the country And over 400,000 vehicles are running on CNG fuel he said and added, this figure would go double in next few years. The Minister informed that an additional one billion cubic feet gas is now available in Pakistan. He said the government is encouraging conversion of power plants from furnace oil to gas and invited the investors to take benefit from the incentives being offered by the present government in this sector. Nouraiz Shakoor informed that US$ 3.5 billion are being Spent on oil import every year. Switching over from furnace oil to gas would save US$ 700 million per anum, he added. He further informed that import of furnace oil has been stopped from July 2003.

http://www.paknews.com/flash.php?id=8&date1=2004-03-30

IT Minister Assures Full Assistance For ITCN-Asia 2004
Updated on 2004-03-30 10:02:34

KARACHI, Pakistan : March 30 (PNS) - Federal Minister for Information Technology and Telecommunication, Awais Ahmed Khan Leghari has assured all possible assistance on behalf of his Ministry as well as that of Pakistan Software Export Board (PSEB) to make the ITCN Asia 2004 a big success.

This was announced by organisers of the event in a statement here on Monday. They said the ITCN Asia 2004 is scheduled to be held at the Expo Centre Karachi from August 9 to 11. The statement further said that the Minister also informed The organizers that he has already instructed the officials of the PSEB to provide every possible assistance to the ITCN Asia Secretariat.

It was stated that the PSEB would motivate the local Software houses to participate in the event and display the capabilities of the Pakistani software industry internationally. ITCN Asia 2004 is being organised by the Ministry of Privatization in collaboration with the Ministry of Information Technology and Telecommunication, the Government of Sindh, Ecommerce Gateway Singapore, CommerceNet Singapore, Jamal's Yellow Pages of Pakistan and the City District Government Karachi.

http://www.paknews.com/flash.php?id=10&date1=2004-03-30

UN Convoy Appriciates Pakistan’s Efforts To Revive Economy
Updated on 2004-03-29 09:22:56

ISLAMABAD, Pakistan : March 29 (PNS) - The Special Envoy of UN Secretary General for Asia Dr. Nafis Sadiq has appreciated Pakistan's efforts to revive the national economy.

Talking to APP in Beijing she hoped it would help achieve the socio-economic targets set by the world body.

http://www.paknews.com/flash.php?id=7&date1=2004-03-29

Britain okays Pak rice, rejects Indian Pusa

By Rizwan Razi

LAHORE: British rice importers have accepted 51 varieties of Pakistani rice and rejected three Indian varieties from approved list.

Sources disclosed here on Monday that Pusa variety is the largest exported rice the world over in the name of Basmati by Indian exporters, which has been removed from the list.

A meeting of British rice importers, held on March 17, accepted all 51 varieties presented by the Rice Research Institute (RRI), Kala Shah Kaku, as ‘Basmati’.

However, DNA testing has pushed the Indian Basmati rice variety of ‘Pusa’ out of the approved list, thus decreasing competition for Pakistani produce in the British as well as European market.

Grain and Food Traders Association (GAFTA) of United Kingdom - a group of British rice importers - has accepted all 51 traditional varieties of rice while pushing at least three Indian varieties including renowned Pusa variety out of the approved varieties.

The sources said that despite frequent requests from the committee, the Indian exporters could not provide samples for DNA testing. Yet the tests of the available variety proved that Indian variety Tarori had the same feature of Pakistani variety ‘Super fine’. Similarly, Indian variety Dera Doon has the same feature of Pakistani variety Kernal.

The meeting was attended by all the stakeholders from the private sector. The sources claimed that it was a private sector’s meeting and governments of any of these three countries - UK, India and Pakistan - were not invited. Therefore, Indian government’s representatives decided not to sit in the meeting.

The Rice Exporters Association of Pakistan (REAP) was represented by its president Barrister Syed Najaf Shah.

GAFTA Code, which would govern the import and trade of rice in UK and may be followed by the European Union (EU), will be prepared by Food Standard Agency (FSA) along with GAFTA in consultation with REAP and All India Rice Exporters Association (AIREA).

Pakistan government contingent included Tariq Puri, Vice Chairman, Export Promotion Bureau (EPB); Anjum Bashir, Commercial Councillor, Pakistan High Commission, London; Muhammad Mushtaq Chaudhry, Director (RRI) Kala Shah Kaku; Zahid W. Khawaja, Brown Rice Exporter and Faisal Hassan Brown Rice Exporter from Pakistan.

The meeting considered the record produced by RRI officials and found it authentic, which lead to acceptance of 51 varieties of Land Races of Pakistan. It was decided that the varieties, for which samples had not been provided, would be removed from the list of approved varieties from 15 to 12.

It was also accepted that the varieties, of which samples had been received by FSA, would not be subject to any further inquiry and the list would become final.

In case the quantity of broken grains was to exceed 20 to 25 per cent the product would not be permitted to be called Basmati.

Inclusion of 51 heritage land races (HLR), which includes Basmati 370 and 6 other varieties Kernal Basmati, plus 5 Indian varieties including Basmati 217, Basmati 386, Deradun Type 3, Ranbir Basmati (IET 11348) and Taraori (Karnel Local, HBC-19). The said 6 varieties including Karnel Basmati are not accepted as HLR. However, it was conceded that they could parent new varieties.

We agreed to provide any further documentation required by FSA on the issue of 51 HLR.

jang.co.pk

PTCL to launch model call and tele-shops next month

Payphone operators criticise the move

By Imran Ayub

KARACHI: Pakistan Telecommunication Company Limited (PTCL) plans to launch model call and tele-shops next month in ten major cities of the country - the move facing much criticism from payphone operators who foresee it as a threat to their business.

The state-owned telecom, entering for the first time into prepaid payphone business, has initially decided to initiate service in ten major cities, but has vowed to expand it throughout the country.

"We are initially launching the service in ten major cities but would later expand it to others," said Mashkoor Hussain, Executive Vice President Business Development PTCL.

"The total number (of model call and tele-shops) has not been decided yet. But it would grow in the days to come," he added. The only objective behind the services was to provide a facility to the common people, he added.

The planned ten cities are: Karachi, Lahore, Islamabad, Quetta, Peshawar, Hyderabad, Sukkur, Gujranwala, Faisalabad and Multan.

The PTCL’s announcement last month to open tele-shops had raised a storm of criticism. Over 400,000 people, directly associated with the payphone network, fear the implementation of the plan would affect their business.

"There are thousands of payphone networks operating in the country spread over both urban and rural areas with massive investment of millions of rupees," said Humayun Nabi Jan, President Association of Card Payphone Operators.

He said besides providing employment opportunities in the country, the ancillary industry brings over Rs6 billion annual revenue to the PTCL and contributes Rs1.8 billion to the national exchequer in the form of taxes.

Over the last few years, the payphone network has registered sharp growth. The network is also operating in some of the far-flung areas of the country, enabling the inhabitants to easily connect to family members working and living outside their hometowns.

The Pakistan Telecommunication Authority (PTA) - the telecom regulator - claims some 145,000 payphone franchises of over 200 payphone companies are operating in the country.

"The PTCL is violating an agreement with us (card payphone operators) by allowing to set up extra-departmental public call offices (ED-PCOs) in the guise of customer service centres," said Nabi Jan. "Now this plan would bring more harm to our business," he added.

However, the PTCL rules out all the notions of payphone business operators, saying it is licensed to initiate the service and has no intention of bringing harm to any business.

"I am unable to understand why they (payphone operators) are opposing it? The PTCL wants a healthy and competitive environment which ultimately benefits consumers," said Mashkoor Hussain.

He cited the existence of over 100,000 payphone shops claiming that it shows its potential to grow. Hussain said the company had nothing to do with the licensing, as it was the job of the PTA.

"The people who are accusing the PTCL of over licensing of payphone shops, they should talk to PTA as they are the authority," he added.

jang.co.pk

Remittances may reach $3.5bn

By our correspondent

KARACHI: Finance Minister Shaukat Aziz has predicted remittances, sent mainly by overseas Pakistanis, will reach around US$3.5 billion this fiscal year.

Addressing the members of Overseas Investors Chamber of Commerce and Industry (OICCI) on Monday, the finance minister expected the agriculture sector to meet growth target of 4.3 per cent because of "improved water availability and fertiliser offtake".

He said cotton, wheat, rice and sugarcane crops had shown good results, adding "this will lead to an estimated Rs65 billion increase in income in the rural areas". That rise, he said, would primarily be due to increase in cotton support price.

He said the manufacturing sector had also been buoyant, growing at the rate of 15 per cent per annum. "As a result of this, the Gross Domestic Product (GDP) is likely to grow between 5.5 and 6 per cent per annum", he expressed optimism.

He said inflation rate had been contained at "about 4 per cent" and there had also been a manifold increase in credit availability to the private sector.

He said the market capitalisation of stock exchanges had improved while price to earning ratio of listed companies stood at 12.

Defending low level of foreign direct investment (FDI) into the country, the minister said at present FDI stood at around $600 million and that had to be seen in the context of the general trend of FDI in the region "which has been low".

The minister sought help of OICCI in attracting foreign investment into the country and agreed "more need to be done to improve the perception of Pakistan among overseas investors".

He assured the chamber the government would take further steps to induce foreign direct investment.

Regarding Preferential Trade Agreement (PTA) and Free Trade Agreement (FTA), Shaukat suggested the chamber "should jointly address the issue and enter into a dialogue with the government".

jang.co.pk

PIA starts Boeing flights for Bahawalpur

KARACHI: Bahawalpur became another domestic destination linked to PIA’s Boeing operation from Sunday. PIA started Boeing service from Karachi to Bahawalpur with the landing of its first Boeing 737 flight at the expanded and upgraded runway with 36 passengers on board.

The runway was extended in December 2002 and completed with the financial help provided by the ruler of Dubai and Finance Minister UAE, Sheikh Hamadan bin Rashid Al-Maktum.

Since then, the Bahawalpur Chamber of Commerce and Industry (BCCI) had been demanding introduction of Boeing service.

Earlier, PIA was connected with the network through Fokker flights and now PIA has started Boeing flights operating on every Friday and Sunday.

At an impressive ceremony held at the airport the District Nazim Bahawlpur, Tariq Bashir Cheema, thanked the management of the national carrier for acceding to the long-standing demand of the people of Bahawalpur for starting the Boeing service.

Local MPA, Parveen Masood Bhutto expressed similar views and said that starting of Boeing service will greatly help the shifting of ailing people from Bahawalpur to Karachi. Earlier, they used to be shifted to Multan and to Karachi from there.

jang.co.pk

Attock Cement earns Rs 127m in H1

By Azhar Ali Khan

KARACHI: Attock Cement Company Ltd recently announced 1H-FY04 result depicts an outstanding performance as it posted a net profit of Rs127 million (EPS: Rs1.76) as compared to 1H-FY03 PAT of Rs72.4 million (EPS: Rs1.0) - a 76 per cent increase Y-o-Y basis.

The company did not announce any interim dividend during the first half of the current fiscal.

During 1H-FY04, it’s cement production shot up by 12 per cent period on period basis while the aggregate sales volume of the company surged by 10 per cent on the back of increase in the overall cement demand that registered a growth of about 8 per cent as compared to the same period last year.

During the first half of the current fiscal, the total capacity utilisation of the company remained 84 per cent as compared to the total capacity utilisation of 72 per cent in the same period last year (this is fairly above the average utilised capacity of the cement sector).

The total sales volume of the cement industry increased by 14 per cent during 1H-FY03 due to an increase in the cement demand in the country. "However, the cement demand in the Southern Zone remained sluggish and declined by 2 per cent," said Humaira Zaheer of Capital One Equities.

jang.co.pk

Concession for investors sought

By Our Reporter

ISLAMABAD, March 29: President of Pakistan Muslim League (Quaid-i-Azam) Chaudhry Shujaat Hussain on Monday said the country could make progress in the field of economy by giving concessions to Pakistani investors. Mr Hussain made this statement while talking to reporters during a reception held in honour of Pakistan-American delegation.

Punjab Chief Minister Chaudhry Pervaiz Elahi, Federal Minister for Religious Affairs Ejazul Haq, Senate deputy chairman Commander (retired) Khalil, US ambassador Nancy Powell, the Russian envoy, Eduard Stepanovich Schevchenko, Chinese ambassador Zhang Chunaxiang, Lt-Gen (retired) Abdul Majid Malik, MNAs and senators were also present on the occasion.

Abdul Rashid Chaudhry was leading the US delegation. Speaking on the occasion, Chaudhry Shujaat Hussain said Pakistanis settled abroad were keen to invest in the country. He said keeping this in view, "we would have to make policies to attract investment in the country".

Chaudhry Pervaiz Elahi, in his speech, said overseas Pakistanis were playing their due role for the progress of the country. He said this was the reason why "our foreign assets have been showing an increase". He said law and order situation in the country in general and the Punjab in particular had been showing improvement.

http://www.dawn.com/2004/03/30/nat2.htm

Rs40.97m approved for three projects

By Our Reporter

ISLAMABAD, March 29: The government on Monday approved allocation of Rs40.97 million from the Export Development Fund (EDF) for initiating three projects during the current year.

The projects were approved in the 32nd meeting of the Board of Administrators of the EDF headed by its chairman Commerce Minister Humayun Akhtar Khan here.

According to an official announcement, the board approved Rs6.35 million for the establishment of apple treatment plant at Quetta. The board also approved meeting of the operational deficits of the plant for the first five years of its operation to ensure sustainability of the project.

The Pakistan Horticulture Development and Export Board (PHDEB) was given go-ahead to proceed with the formation of a company and implementation of the project.

It was also decided that the project for operationalization of the date processing plant lying closed in Turbat, Balochistan, might be resubmitted to the board after further study. It was decided that the PHDEB would study the possibility of setting up a collection point for fruits and vegetables in Khuzdar, Balochistan.

The board also approved financing of $211,000 (Rs12.12 million) for implementation of the industrial cluster development programme being implemented in five existing clusters in collaboration with the UNIDO.

It was agreed that an MoU would be signed with the UNIDO for extension of the cluster development programme to include seven new industrial clusters announced in the trade policy 2003-04.

Financing of Rs22.5 million was approved for the establishment of textile testing laboratory in Faisalabad sponsored by the All Pakistan Cloth Exporters Association (APCEA). The laboratory would get ISO certification within two years of its coming into operation, the announcement added.

http://www.dawn.com/2004/03/30/ebr4.htm

$4.22 billion export target for four months

By Our Reporter

ISLAMABAD, March 29: The government has projected $4.222 billion as export target for four months (March-June) to achieve the annual target of $12.1 billion set for the current financial year.

An official source in the commerce ministry told Dawn on Monday that during the first eight months (July-Feb) of this fiscal year, the value of exports has already gone up by 2.1 per cent over the projected target for the same period.

According to the official during the same period under review, around $4.240 billion worth of goods were exported last year. Keeping this in view, he said that this year the target would be easily achieved.

Further, on month-wise basis, the government has projected $987 million exports for March; $1.035 billion for April; $1.108 billion for May and $1.257 billion for June.

The official said this year wheat has not been exported. However, exports of fish registered a growth of 21 per cent during July-Feb period over the same period of last year, fruits and vegetables by 14 per cent, chemicals by 7 per cent and engineering goods by 21 per cent.

With the total exports of $7.878 billion during the period under review the value of textile and garments stood at $5.278 billion.

http://www.dawn.com/2004/03/30/ebr8.htm

Pakistan not to suffer economic setback due
to WTO regime: Commerce Minister

ISLAMABAD: Minister for Commerce Hamayun Akhtar said Monday that government has taken strong measures for the uplift of industries and Pakistan will face no setback after the implementation of WTO regime.

Speaking on the floor of the National Assembly, the Commerce Minister said the present WTO which was implemented from January 1, 1995 during erstwhile GATT, has brought fruitful results for the country. Under this, the industries gained great protection.

He hoped the new agreement under Doha Development Agenda would prove beneficial for the country's industries. He said, last year the country's exports increased by $ 2 billion from $ 9 billion to $ 11 billion.

Hamayun said the State Bank reserves worth $ 12 billion are enough for the country's imports.

About a supplementary question by MNA Kashmala Tariq regarding the criteria for the posts of Commercial Councillors, the Commerce Minister said only Commerce Ministry had a Selection Board where rigid criteria was being adopted for the selection.

About textile quota, Hamayun said two third of country's export is textile related. Pakistan struggled against the quota system, from 1986 to 1994 when the GAT transformed into WTO.

He said after the abolishment of quota, the industrial sector experienced rapid growth in several sectors.

The Commerce Minister said Pakistan has a robust trade relationship with United States.

Hamayun said he would be visiting the US the next month to attend a meeting of TIFA. More market access in the US would be sought which would prove as a building block between the two countries.

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Pak also feels-good, GDP to surpass target

Press Trust of India/Agence France-Presse

Karachi, March 30: Pakistan's economy continues to be plagued by unemployment and inflation despite a GDP growth rate that looks set to surpass this year's 5.3 per cent target, the central bank said on Tuesday.

“Due to an exceptional rise in the industrial sector and improvement in many other macroeconomic indicators" the economy appeared set to surpass the projection for the year to June, the state bank of Pakistan said in its half yearly review.

“It seems highly probable that real GDP growth during fiscal 2003-2004 will be comfortably above the 5.3 per cent target for the year.”

Pakistan's Gross Domestic Product (GDP) growth rate would come in higher than the 5.1 per cent reached last year despite unemployment and inflation looming large, the bank said

http://www.expressindia.com/fullstory.php?newsid=29856

Pakistan will get free from IMF debt in next budget: Shaukat Aziz

KARACHI: Pakistan’s Minister of Finance Shaukat Aziz has said that in the next budget Pakistan will be freed from the IMF debt. He was addressing Sardar Ali Sabri memorial seminar under the aegis of Jang Group of Newspapers here.

Chairman, Pakistan Steel Lt. General ® Abdul Qayyum, Federal Tax Ombudsman Justice Saleem Akhtar, Editor Jang Group Mehmood Sham and others also addressed the seminar.

Minister of Finance was also given Mir Khalil-ur-Rehman National Solidarity Award. The first three position holder students of the Mass Communication Department, University of Karachi were also given Sardar Ali Sabri Awards.

Governor of Sindh Dr. Ishrat-ul-Ebad Khan addressing the gathering as chief guest said economic stability was essential for a country’s progress. He invited investors from the Islamic countries to invest in Pakistan particularly in Sindh.

geo.tv

US democracy-related law no longer
applicable to Pakistan: FO

ISLAMABAD: Pakistan says that instead of yearly certification by the US president, the democracy-related law, which imposes sanctions, should be abrogated altogether.

Spokesman at the Foreign Office Masood Khan said this while responding to a query on implications for Pakistan in which President Bush had signed a yearly certification, lifting democracy-related sanctions on Islamabad.

Addressing a press conference, the spokesman said that since democracy had already returned to Pakistan, this law could no longer be applied on it. Responding to a query about US Defence Secretary Donald Rumsfeld comments on Pakistan’s involvement in nuclear proliferation, he said that investigations were still continuing.

He added that so far it had been revealed that no high-level military official had been involved and the proliferation network had been neutralised.

The spokesman said that there had been no request so far, official or otherwise, by the IAEA to inspect Pakistan’s nuclear installations. He said that since Pakistan was not a member of the NPT club it was under no obligation to do so. But he emphasised thatPakistan was cooperating with the IAEA because it was a member of this organisation and also because it was on the board of governors.

When Pakistan’s mission had contacted the IAEA spokesperson, she said that she had already sent a clarification to the concerned reporter and denied that there had been such a request.

Responding to a query on Vajpayee’s recent statement, the spokesman said that Pakistan agreed with Vajpayee that peace cannot be one sided. He said that the two foreign secretaries would be meeting soon, which would give the process its own momentum.

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Pakistan Telecom Act to be amended

SOHAIL SARFRAZ

ISLAMABAD (March 31 2004): The government has decided to amend Pakistan Telecommunication (Re-organisation) Act, 1996 (Act XVII of 1996) to promote competitive environment making Telecom Deregulation Policy investment-friendly.

Sources told Business Recorder here on Tuesday that the Ministry of Information Technology has prepared a summary for the cabinet to amend the act.

The draft of the summary has been dispatched to various government organisations for their comments before submitting to the cabinet for approval.

According to details, Pakistan Telecommunication (Re-organisation) Act was enacted on October 17, 1996. Since then there have been a number of developments including the end to monopoly of Pakistan Telecommunication Company Limited (PTCL) over voice communication after January 1, 2003, creation of Pakistan Electronic Media Regulatory Authority (Pemra), growth in size and operation of National Telecommunication Corporation (NTC) and enhanced demand for frequency spectrum.

The cabinet has recently approved the Telecom De-regulation Policy and Mobile Cellular Policy to provide the telecom sector a competitive environment. These policies have necessitated amendments in the Act to expand and restructure the Frequency Allocation Board (FAB) and define its jurisdiction and functions.

The Act will be amended to introduce a tariff regime based on cost of providing service safeguarding the interest of consumers.

It would also establish a regime for "Access Promotion Contribution" to regulate diversion of prescribed part of revenue from international incoming traffic towards infrastructure development in under-served and commercially non-viable areas.

The amendment in the Telecommunication (Re-organisation) Act will give powers to the Pakistan Telecommunication Authority (PTA) to investigate and enforce competition and charge regulatory fee. Establish and manage Universal Service Fund for providing people access to telecommunication services in the un-served, under-served, rural and remote areas.

It would link Pemra, PTA and FAB for better co-ordination and sector development and matters relating to international telephony.

Sources said that the Ministry of Information Technology has also proposed other amendments in the said law.

The punishment for offences under the Telecommunication (Re-organisation) Act has been increased from two years to three years to make the offences non-bailable in order to curb the illegal international incoming traffic and other offences pertaining to telecommunication.

Moreover, the period of processing applications for spectrum by FAB has been reduced from three months to one month for facilitating the new entrants.

In line with the decision of the cabinet committee on telecommunication headed by the then Chief Executive, it is proposed that the Board of National Telecommunication Corporation (NTC) may be expanded and reconstituted and NTC be give more financial autonomy and administrative authority.

The Lahore High Court, while interpreting section 7(3) of the Act of 1996, has held that the revisional authority for hearing revisions under the Act is Secretary IT and Telecom Division, whereas Law Division opined that Secretary Cabinet Division is competent to hear the revisions. To remove this ambiguity the government has decided to amend the said law.

Copyright Business Recorder, 2004

www.brecorder.com

Oil and gas sector lead in corporate earnings

RECORDER REPORT

KARACHI (March 31 2004): The corporate earnings during 2003 showed tremendous improvement compared with preceding year where oil and gas exploration sector led the gainers while cement and power generation was relatively poor.

According to second quarter report released on Tuesday, the State Bank of Pakistan said that corporate results had shown a tremendous improvement during 2003 compared with previous year.

The earnings data for the top 30 companies on the basis of profit after tax (PAT), earnings per share (EPS), dividends, yield and market value reflects a market improvement in corporate performance.

The top 30 companies' net income during 2003 recorded a growth of 18.1 percent, to Rs 65.843 billion, as compared with Rs 55.760 billion of the preceding year, while earning per share stood at 6.1 percent as against 5.1 cent of preceding year.

Average cash dividend of these companies worked out to 40.6 percent as compared with 33.8 percent a year ago.

Sectoral 2003 earnings performance based on 530 listed companies showed that the top performing sector is the oil and gas exploration sector with a massive EPS of Rs 19.4.

The weak performance of textile spinning is puzzling, given the significantly improved export performance.

The performance of cement and power generation and distribution sectors was, however, relatively poor.

This was despite the fact that D.G. Khan Cement and Hubco performed very well within their respective sectors. Heavy losses suffered by KESC amounting to Rs 8.3 billion accounted for the bulk of losses in the power generation and distribution sector.

In fact, only two other companies incurred losses and the rest earned higher profits compared with 2002.


Copyright Business Recorder, 2004

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HSBC named FA for Dalda

KARACHI (March 31 2004): Unilever Pakistan (UP) has appointed HSBC as financial advisors to sell their edible oil business along with assets and brand "Dalda."

According to HSBC/Unilever press release issued here on Monday, March 29, the process started in January 2004 where 16 parties showed interest in the business and confidential information memorandum was issued to them. Out of these 12 parties participated in non-bidding bid.

After intensive and transparent evaluation six parties were selected and due diligence and negotiation are in progress.

The parties involved in final negotiation are representing Fauji Foundation, Habib Oil Group, Soya Supreme Group, Unilever Employee Welfare Group, Savola Group (Saudi Arabia) and Candyland Group.

The above parties have showed keen interest and by the end of April the deal should be finalised.-PR

Copyright Business Recorder, 2004

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British companies interested to shift businesses to Pakistan

RECORDER REPORT

LAHORE (March 31 2004): British Deputy High Commissioner Hamish St Clair Daniel has said that the UK would continue to support Pakistan against levy of anti-dumping duty on Pakistan's bed linen by the European Union.

In a meeting with LCCI President Anjum Nisar, Daniel said that the UK had continuously extended support to Pakistan in its efforts against terrorism. Efforts are afoot to raise bilateral economic co-operation between the two countries, while several British companies in the fields of education & training, printing & packaging and textile & designing industry are showing keen interest to shift businesses to Pakistan.

A delegation of the British textile machinery sector would visit Pakistan and hold catalogue exhibitions and a series of seminars in Lahore, Karachi and Islamabad in September this year.

He expressed satisfaction over new developments taking place on India and Pakistan fronts.

He, however, agreed with the LCCI president that Pakistan has been subjected to negative propaganda by Western media. He hoped that the 'Investment Conference' taking place in four weeks in UK would further enhance flow of investment to Pakistan.

The LCCI president invited British companies to invest in Pakistan particularly in Gwadar and Sundar Industrial Estate to make best use of the geographic location of this free port.

Pakistan, he said, now stands close to a large market of over one billion people, having the same set of consumer preferences and nearly same climate and culture.

Investment operations based in Pakistan would not be restricted to the Pakistani market alone.

These positive developments should be studied and monitored by the commercial sections of diplomatic missions for a more objective guidance for the businesses, he observed.

To be specific, investments in agro-based packaging and processing can find an instant wide market stretching from Lahore to Lucknow and Karachi to Mumbai.

Similarly, textile value-addition and the apparel sector can also be other potential areas for investment.

In this context, South Asian origin investors can take the initiative and lead to set the ball rolling, he added.

Copyright Business Recorder, 2004

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Iran allows private sector to import rice

RECORDER REPORT

KARACHI (March 31 2004): The Iranian government has allowed the private sector to import rice on payment of 4 percent custom duty and 96 percent benefit tax.

The information has been conveyed to Rahim Janoo, founder-chairman of Rice Exporters Association of Pakistan (Reap) by Pakistan's Commercial Counsellor in Teheran.

The commitment was made by the Iranian side at the 24th session of Pakistan-Iran joint Economic Commission held in Islamabad recently.

The Iranian side committed that import of rice would be allowed with from 'new year' beginning from March 20.

The Counsellor has said that as the Iranians observe holidays for about two weeks on the occasion of their new year 'Nauroze', it was difficult to contact any official during that period.

The Pak mission, however, succeeded in contacting the Iranian officials at the Ministry of Commerce and obtained the new book of import tariff in Persian.

According to the 'book', rice can now be exported to private parties in Iran on payment of customs duty at the rate of 4 percent and commercial benefit tax of 96 percent.

The 'book' does not mention anything about import, which means that now the private sector can also import.

Pakistan's mission suggested that Reap should arrange rice packs as 'Nauroze gifts' for officials and important personalities which would help Pakistan to market its super quality rice in the Iranian market.

Since rice constitutes major portion of Pakistan's exports to Iran, Reap should be on the forefront to make marketing gestures like arranging rice packs as gifts.

Copyright Business Recorder, 2004

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Gwadar port to have transit shipment facility

QUETTA (March 31 2004): Federal Finance Minister Shaukat Aziz has said that transit shipment facility will be provided at Gwadar Port so that the businessmen could store their cargo for onward shipment to the Gulf States.

Addressing members of the Balochistan Chamber of Commerce and Industry here on Tuesday, he said that X-ray machines would be installed in Quetta, Chaman, Peshawar and Karachi to check smuggling of contraband items through containers.

He said that steps would be taken to promote tourism in Gwadar. Gwadar Airport is being extended where necessary modern facilities would be provided to the travellers with the assistance of Oman government. Chinese government is helping Pakistan in development of Gwadar Port, he added.

He said the economy has recovered and consolidated resulting in generation of tremendous job opportunities.

The finance minister said that with the strengthening of economy, Pakistan has broken the begging bowl and soon it would be out of the yoke of the International Monetary Fund (IMF).

Referring to other achievements in economy, he said that there was increase in agriculture production. Sugarcane crops have registered a record increase. Production of rice has also increased by 8 percent to 9 percent.

Industrial production has increased by 15 percent, while investment was also on the rise. Investments are coming in textile engineering, automobile and cement.

He said that textile machinery worth $3-4 billion has been imported.

Shaukat said that new factories would be set up during the next 10 years. There is also increase in per capita income. Some 0.4 million motorcycles and 0.1 million vehicles would be manufactured this year.

Copyright Associated Press of Pakistan, 2004

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Transit trade Gwadar port to generate over $50 b

Abu Talha

Islamabad—The Gwadar deep-sea port, to be completed by March 2005, will have the potential to generate over $ 50 billion in transit trade annually in future.

Official sources said after becoming fully operational along with strong communication and transport links with Central Asian States, Iran, western provinces of China and commercial cities of the country, an estimated two-thirds population of Balochistan will become part of port-related activities.

The mega project which includes construction of three berths in the first phase will generate job opportunities for thousands of people. Having the potential to handle ships over 50,000 tons weight, the port will have huge cargoes for transiting to the Gulf region through smaller ships.

Reports emanating from the Gulf region suggest that authorities there are keenly interested in the project and for its early completion as their over-saturated warm water ports cannot absorb further pressures.

The sources said situated on mouth of the Gulf, the warm water Gwadar port will wait for transit of huge discovered and undiscovered estimated 2500 billion barrels of oil in Central Asian Region to different destinations as the fuel-thirsty nations are looking towards this region to meet their future needs. The nearest port for such facilities is this under-construction port. This port will become a gate-way for the region. It also offers special opportunity for land-locked Afghanistan.

The sources said foreign consultants have been engaged to overview the plan prepared by the Nespak for the port city. Modifications are expected in the original plan.

However, the business sources in the area are sceptical about the way the affairs of the port are being handled. They were of the view that the port will be completed by March 2005, but the road links with commercial cities of the country are still a distant dream. The feasibility study for railway links with the port is not yet complete and restoration of peace in Afghanistan is not in sight. With this situation the potential of the port cannot be exploited as desired.

The sources said the disposal of land, commercial and residential, supply of water, grievances of local population, construction of well-equipped international airport and construction of storages and warehouses are a few issues which need to be tackled in a transparent manner.

The land mafia in the area is trying to grab the precious land in the emerging port city, the population of which is expected to jump over one hundred thousand from the present about 60,000 in near future.

http://www.pakobserver.net/200403/31/view/?page=1&id=5

Import of machinery registers 23.7pc increase

Islamabad—The import of machinery and chemicals have increased significantly by 23.7% during July-February 2003-04 as compared to the corresponding period of last year.

Increase in import of machinery is a positive indicator of economic activity in the country. The higher non-food import and non-oil imports appears to reflect gearing up of the economy, an official source told APP here Monday.

Imports excluding petroleum products and food group during last eight months amounted to US$6559.4 million as against US$5069.9 million during the corresponding period of the last year showing an increase of 29.4%.

Textile industry has invested heavily to prepare the challenge after abolishing of textile quota in 2005. The textile sector has imported textile, machinery worth US$363.4 during July-February 2003-04 as against US$326.6% million during the corresponding period of last year.

The increase in the import of motor vehicles was driven essentially by surge in domestic demand due to increased availability of car financing which is relatively cheap.

Import unit value of major importers have shown an increasing trend in the range of 1.1% to 25.6% increased the import during July-February 2003-04 otherwise import bill would have been US$7636 million and the trade deficit would have been US$865.0 million.

Pakistan’s imports during July-February 2003-04 have registered an increase of 17.2% as compared to the corresponding period of the last year. The growth was initially projected at 5.0%.

The items of machinery group registered increase of 23.7% while chemical group by 23.7%, textile group by 15.8%, metal group by 35% and miscellaneous group by 21.8% and food group by 6.9%.

Import of petroleum crude increased by 13.8% due to rise both in quantity and unit value by 7.6% and 5.7% respectively during the period under review.

While the import of petroleum products declined by 28.6% despite increase in import unit value by 25.6% during July-February 2003-04 as compared to the corresponding period of the last year.

In the food group import of tea was 15.4%, spices 69.9% and edible oil 25.3% have increased during the period while decline has been observed in the import of milk cream by 13.3%, dry fruit by 76.6% and pulses by 50.4%.

Import of metal group have increased significantly by 35% to US$419.8 million during July-February 2003-04 from US$311.0 million during the corresponding period of the last year.

The trade deficit increased by $1216.3 million during July- February 2003-04 as against $838.9 million in July-February 2002-03 registered an increase of 45.0%.

Because of expansion in economic activities the import of machinery and chemical have increased which led to increase trade deficit during July-February 2003-04.

The increase in the trade deficit was on account of higher imports by 17.2% and exports by 13.8%—APP

http://www.pakobserver.net/200403/31/view/?page=4&id=2

Robust growth in revenues during first half FY 2004

Karachi—The State Bank of Pakistan, Tuesday stated that second quarter of the financial year 2004 (Q2-FY04) fiscal performance remained quite remarkable.

In the second quarterly report for the year 2003- 04, SBP explained that Rs.33.7 billion consolidated budget deficit reported for first half of the year (HI- FY04) is lower than the Rs.40.9 billion recorded for Q1-FY04. “In other words, it seems that the quarter under review recorded the first ever fiscal surplus since sub-annual data was made available in FY01.”

In terms of GDP, the consolidated budgetary deficit for HI-FY04 is a mere 0.8 percent, comfortably within the 4.0 percent annual target for FY04 and approximately half of the corresponding period last year.

The support came both from disciplined expenditures as well as a robust growth in revenues during HI-FY04. While the spending growth was contained to 3.6 percent (vs. the 4.0 percent average target for FY04), a 13.9 percent revenue growth for the period substantially exceeded the 5.3 percent average growth target for FY04.

Both tax and non-tax receipts contributed strongly to the aggregate revenue growth. While the former benefited from strong CBR tax collections; higher interest and dividend income largely due to improving health of financial and non-financial institutions coupled with logistic support receipts from US helped the rise in non-tax revenues, SBP pointed out.

CBR Q2-FY04 tax receipts jumped 22.8 percent YoY to Rs.136.4 billion, pushing the cumulative HI-FY04 tax revenues to Rs.230.4 billion - well above the Rs.218.1 billion target for the period.

The strength of the CBR performance is also underlined by the fact that, other than direct taxes (which were marginally below target), receipts under all tax heads comfortably achieved the respective HI- FY04 targets, SBP stated.

The State Bank of Pakistan, in its second quarterly report referring to impressive 12.4 % aggregate growth in industrial sector, termed availability of cheap consumer financing, strong growth in exports especially to textiles, higher farm income, and lower funding cost etc. instrumental to enhance demand vis-a-vis high growth rate.

State Bank of Pakistan stated that an acceleration in industrial production during Q2-FY04, compared to Q-1-FY04, led to a remarkable aggregate growth of 12.4 percent during the HI-FY04 compare to a 5.1 percent growth in the corresponding period last year.

This strong growth in industrial production owes largely to a 14.7 percent growth in large-scale manufacturing (LSM), with a supporting contribution from the 6.7 percent increase in electricity generation.

The State Bank of Pakistan has also predicted a reasonably good growth in the agriculture sector during financial year 2004 (FY04). The central bank in its second quarterly report for the year 2003-04, maintained that agriculture sector is expected to record good growth despite the negative impact of lower than the targeted cotton crop and the loss to poultry sector due to the “bird flue” virus.

In fact, the above target production of rice and sugarcane offset much of the impact of the relatively weak FY03 cotton crop. However, achieving the 4.2 percent growth target for agriculture during FY04 is only possible if the wheat harvest exceeds its target by a substantial margin and the livestock sub-sector remains at least on target, SBP stated.

Analyzing the outcomes, SBP stated that water availability improved further, reaching almost to the norma level in kharif FY04, and increasing by 30.1 percent in rabi FY04 compared to FY03.—APP

http://www.pakobserver.net/200403/31/view/?page=1&id=9

No chapter, verses regarding Jihad, Shahadat
removed from textbooks: Zubaida

RECORDER REPORT

ISLAMABAD (March 31 2004): Federal Education Minister Zubaida Jalal has said that no chapter or verses regarding Jihad and Shahadat has been deleted or removed from the textbooks being taught in the country and the Ministry would soon delete any objectionable material, which spreads the sectarian hatred among the people, from the textbooks.

She stated this on Tuesday while addressing the participants of the 'National Seminar on Preventive Education against AIDS/HIV', jointly organised by the Ministry of Education in collaboration with Unesco.

The Minister categorically rejected the assumption and said that no verses regarding Jihad has been deleted, rather some have been shifted from inter level to matric level.

She told the participants that the Ministry of Education is the defender of the ideological boundaries of the country and would go to every extent to uphold the Islamic identity of the nation.

She maintained that making up-to-date changes and bringing modifications in the textbooks is the sole discretion of the provinces, but they can only modify the textbooks by following a strict policy guideline framed by the federal ministry of education.

Zubaida Jalal informed the participants that report has been sought from the province on the issue to inform the public and the parliamentarians about the actual situation.

The Minister further said that some politico-religious elements misinterpret the term Jihad thus inciting the masses by misinforming them about the non-issue.

She maintained that she would soon disclose the factual position and clear the assumptions and misconceptions found in a section of people through the media.

Meanwhile, talking to the Indian journalists at SAF games, Zubaida Jalal said that syllabus being taught in Pakistan is minority-friendly and minorities enjoy equal rights in the educational institutions of the country.

She also told the journalists that