NEWS of JUNE 2005
25-06-2005
The President of Islamic Chamber of Commerce and Industry (ICCI), Shaikh Salah Bin Abdullah Kamel, is scheduled to visit Pakistan from June 25 to 27. He would be accompanied by Khalid Rabah Director General ICCI. Shaikh Salah Bin Abdullah was elected as ICCI chief two months back and his visit to Pakistan is in continuation of the Islamic Chamber's efforts to inspire international investors with main focus on Islamic world to prefer Pakistan for investment.
Commerce Minister Humayun Akhtar Khan called on Prime Minister Shaukat Aziz and discussed with him the upcoming trade policy and export targets for the next year. During meeting, held at the Prime Minister House, the need to restructure Export Promotion Bureau also came under discussion.
The Lahore Chamber of Commerce and Industry (LCCI) has urged the government to set up a special section in the Board of Investment (BoI) to provide one-window facility to foreign investors for establishing an industrial unit. The LCCI's Senior Vice-President, Sohail Lashari, raised this demand, after his return from Turkey and the UK.
The Ambassadors of G-8 countries (USA, Japan, UK, France, Germany, Italy, Canada, Russia and European Commission) called on President General Pervez Musharraf. The G-8 Summit is scheduled to be held in Gleneagles Scotland next month under the presidency of United Kingdom. The main themes of the Summit would bet Africa Development and Climate Change.
The Asian Development Bank (ADB) is likely to approve a Technical Assistance (TA) of $0.45 million for the preparation of "north-west Frontier Province Devolved Social Services Programme" aimed at making the services delivery more effective, equitable and sustainable, it is learnt. Through this proposed TA, the Bank would help and assist the NWFP government in preparing programmes of reforms to make devolved social services delivery as per felt-need of the community.
For turning the civic body of the Capital into a corporate entity to generate funds for mega development schemes, the Capital Development Authority (CDA) has decided to hire foreign firms to set up a "Land Bank" in Islamabad. The main purpose of setting "Land Bank" is to utilise land in the non-developed sectors to generate funds for development work.
United States Agency for International Development (USAID) will provide dollars 10 million as grant to Small and Medium Enterprise Development Authority (Smeda) in support to Pakistani businesses for improving production and capacity in order to compete internationally. USAID Director Lisa Chiles and Smeda chief executive Shahab Anwar Khawaja signed the grant agreement. US Ambassador Ryan C Crocker and Industries Minister Jahangir Khan Tareen attended the ceremony.
Federal Minister for Industries, Production and Special Initiatives, Jehangir Khan Tareen, will be launching 'Industrial Information Network' (IIN), Pakistan's first B2B and business information portal on June 25. This was stated by the Small and Medium Enterprise Development Authority (Smeda) Chief Executive Officer (CEO), Shahab Khawaja.
Pakistan's tourists arrivals in Malaysia rose to 13,835 last year, higher by 46 percent from 9484 in 2003. "The number this year is expected to go up further," said Malaysian Deputy Minister, Tourism, Ahmed Zahid Hamidi. The minister, who is visiting Pakistan as part of a sales mission trip, accompanied by key people from the Malaysian tourism industry, will also visit Lahore and Islamabad by the end of this month.
24-06-2005
Pakistan is unlikely to sign Bilateral Investment Treaty (BIT) with the United States during the forthcoming visit of Prime Minister Shaukat Aziz next month. Secretary Commerce Tasneem Noorani, who returned from the United States a day earlier, said that talks on BIT with the US were heading towards a positive direction but the pact may not be signed during the forthcoming visit of the Prime Minister.
Board of Investment (BoI) Chairman Wasim Haqqie said that the figure of Foreign Direct Investment (FDI) might cross US 1.1 billion dollars record of the past at the end of this fiscal year. He said 1.03 dollars FDI had been registered so far during 11 months, while at the end of year that figure was expected to raise beyond 1.1 billion dollars.
Country's foreign exchange reserves by the end of week on June 18, 2005 declined by $41.1 million at $12,406.7 million. According to the State Bank of Pakistan, out of total reserves, the central bank held $9,673.9 million whereas $2,732.8 million were with other banks.
A Thai delegation, led by Deputy Commerce Minister Suriya Lapvisutisin called on Prime Minister Shaukat Aziz at the PM House and discussed with him trade and investment ties and other bilateral matters. Talking to the delegation, the Prime Minister said that the people of Thailand, its government and its economy were admirable and the country was a model for the developing world.
The commerce ministry plans to announce trade policy 2005-06 on July 28, with estimated growth of 11.93 percent in exports and 12.96 percent in imports, it is officially learnt. Sources said the ministry might ask the cabinet to revise exports and imports targets of $15.7 billion and $19.8 billion, respectively, set by the National Economic Council (NEC) for next fiscal.
The Asian Development Bank (ADB) has been a major development partner of Pakistan and its contribution towards the country's socio-economic progress will be long remembered since it had always stood by Pakistan, Prime Minister Shaukat Aziz. He was talking to ADB Country Manager Marshuk Ali Shah, who called on him at the Prime Minister House.
United States Agency for International Development (USAID) will provide dollars 10 million as grant to Small and Medium Enterprise Development Authority (Smeda) in support to Pakistani businesses for improving production and capacity in order to compete internationally. USAID Director Lisa Chiles and Smeda chief executive Shahab Anwar Khawaja signed the grant agreement. US Ambassador Ryan C Crocker and Industries Minister Jahangir Khan Tareen attended the ceremony.
The Karachi Port handled 123,719 tonnes of cargo including 92,091 tonnes import and 31,628 tonnes export cargo including 3,241 containers during last 24 hours ending at 0700 hours. The cargo comprised of 69,919 tonnes dry cargo including 51,826 tonnes general cargo; 4,238 tonnes rice; 1,701 tonnes cement; 2,000 tonnes rock phosphate; 10,154 tonnes fertiliser and 53,800 tonnes oil/Liquid cargo.
22-06-2005
Prime Minister Shaukat Aziz outlined "special initiatives" in the social sector to be launched in the current financial year and asked the donor countries and agencies to be a "partner in progress" and help the government achieve its development goals. Speaking to ambassadors and representatives of major donor countries and financial institutions, the Prime Minister gave an update on the special initiatives the government plans to undertake to alleviate poverty and improve the lot of people.
In a landmark deal between Pakistan International Airlines Corporation (PIAC) and His Royal Highness Prince Faisal bin Khalid Bin Abdul Aziz Al Saud, the son of the late King Khalid of Saudi Arabia, the joint ownership of three hotels under the management of PIA Investments Company Limited has ended and the assets have been redistributed between the partners.
A delegation of SHV Holding Netherlands and House of Habib led by Chairman SHV, P.C Klover called on President General Pervez Musharraf. The president welcomed the delegation and briefed them about various economic measures and policies of the government that had resulted in an investment friendly environment in the country.
The Adviser to Prime Minister for Finance, Revenue and Economic Affairs, Dr Salman Shah, will meet Karachi-based importers to find ways and means to import food items for stabilising prices and curb inflation in the country.
The Government of Japan has approved the release of dollars 0.05 million from the Trust Fund for Human Security to finance a united nations development programme (UNDP) Project entitled "Poverty Alleviation and Sustainable Development Facility." UNDP will establish a pilot project on rainwater harvesting, conservation and efficient use of water in dry land areas in Kohat District of NWFP.
Punjab Small Industries Corporation (PSIC) is holding a series of seminars in different cities of the province from July 25, to introduce different items, which can be produced locally and secure their place in the markets of United States. PSIC had imported some 400 samples of different items ranging from textile, kitchen, bathroom, plastic, stainless steel and other products from one-dollar shops of the US.
Small and Medium Enterprise Development Authority (Smeda) in collaboration with the USAID, is going to set up 'Competitiveness Support Fund' in a bid to improve the competitiveness of the Small and Medium Enterprises (SMEs) of the country. Smeda was already working on an USAID sponsored project entitled 'Pakistan Initiative for Strategic Development and Competitiveness (PISDAC).'
The National Tariff Commission (NTC) has asked the Pakistani industrialists that if they are facing unfair trade practices, especially dumping, subsidies given to foreign exporters/manufactures and in case of a sudden surge in import of a particular product due to which domestic industry has been adversely affected, they may apply to the NTC for remedial measures.
The Malaysian Tourism Promotion Board (MTPB) is organising a promotional effort in Pakistan from June 23 till July 1. According to the MTPB, the drive will provide a platform for the Malaysian private sector to further explore the business opportunities present in this country. The promotion will cover three cities, namely Karachi, Lahore and Islamabad.
The auto industry, which is currently producing more than 100,000 cars per year, is set to grow to 500,000 within the next five years. Presently, car market is growing at a rate of 32 percent. The main reason for surge in demand of cars is the availability of excess liquidity with the banks and a growing population.
The Belgian government will provide $6-7 million loan to Pakistan for purchase of locomotives. Ambassador of Belgium to Pakistan Patrick Renault stated this, while talking to Railways Minister Mian Shamim Haider. Patrick informed the minister that the Belgian government had already reserved $6-7 million for giving loan to Pakistan. The interest-free loan would be refundable up to 10 to 30 years.
21-06-2005
Muslim nations moved closer to forming a free trade area (FTA), with plans to adopt tariff-cutting steps by end-2005 to bridge a gap between oil-rich and poor members of the Organisation of the Islamic Conference. "This is an important first step towards the larger goal of greater economic integration among the OIC countries," the group's chairman, Malaysian Prime Minister Abdullah Ahmad Badawi, told an OIC trade forum.
The United Nations Development Programme (UNDP), International Labour Organisation (ILO) and Government of Pakistan have signed a project worth $0.37 million to support the Prime Minister's Programme for Vocational and Skills Training, which aims at creating appropriate employment opportunities for unemployed youth.
Islamabad Chamber of Commerce and Industry has appreciated the successful privatisation process of Pakistan Telecommunication Company Limited (PTCL). President ICCI Tariq Sadiq in a statement congratulated President, Musharraf, Prime Minister Shaukat Aziz, Ministers Awais Leghari and Dr Hafeez Sheikh on the highest ever bid of Rs 156 billion in the Pakistan's history.
US Ambassador to Pakistan Ryan C Crocker on Monday said Pakistan has done well in Textile Sector but it must diversify in other high-tech areas while maintaining its tempo in Textile. Speaking at a meeting with the FPCCI members in the Federation House Karachi, the US envoy mentioned other areas as communication and information technology, software development etc.
G-Hanz Germany Chief Executive Officer (CEO) U K Ghosh has said Synergy Corporation Pvt limited, in collaboration with their German partners G-Hanz, have planned to invest Rs 350 million for the manufacturing of plasma television sets in Pakistan. G-Hanz CEO said manufacturing of Plasma television sets was expected to start within next 90 days.
The Ministry of Ports and Shipping has extended waiver of storage charges for 60 days on Afghan transit cargo lying at the Karachi Port on or before March 31, 1999. The traffic manager, Karachi Port Trust (KPT), in a fax informed the Karachi Customs Agents Group (KCAG) that the Ministry of Ports & Shipping in its order dated 8-6-2005 has proposed further extension of 60 days with effect from 10-06-2005 for lifting of Afghan transit consignments without payment of storage charges.
The visiting Chinese delegation, headed by Younuc Yucup, Collector Xinjiang Customs, has said that there are lot of opportunities for investment in China and Pakistan. "To further promote the trade and business opportunities between China and Pakistan, the business circles from both sides should exchange the trade teams," he said. He was addressing the joint meeting of the customs officers and management of the Faisalabad Dry Port (FDPT).
Gwadar Development Authority (GDA) Director General, Ahmed Bakhsh Lehri, invited private sector to invest in Gwadar and utilise development opportunities being extended by the government. Addressing members of Federation of Pakistan Chambers of Commerce and Industry here at the FPCCI House, he said that there was possibility to invest in monorail and desalination projects, considering the vast portion of land lying vacant in the 'next big economical hub of Pakistan'.
09-06-2005
Sindh Governor Dr Ishratul Ibad Khan said that provision of jobs and alleviation of poverty was on top of government priority list. Talking to delegations of investors of United State of America, Great Britain and United Arab Emirate, who called on him separately at Governor's House. Governor said that improvement in law and order situation and measures taken by government to boost investment activities were being proved helpful in alleviation of poverty and creating job opportunities.
The US Consulate Principal Officer Micheal Spangler and Political Advisor Saqibullah Khan visited Small and Medium Entrepreneur Development Authority (Smeda) Office Peshawar. During the visit, Federally Administrated Tribal Area (Fata) Director Mineral Mohammad Yaqub Shah and Smeda provincial chief Mohammad Tariq briefed them on mineral sector of Fata and the potential in mining sector in Tribal Area.
Canada-Pakistan Business and Technology Forum (CPTBF) has been formed to enhance economic co-operation between two countries, during an international conference on "Canada's Role in Sustainable Development of Asian and African Countries" held in Toronto recently. Former president of Federation of Pakistan Chambers and Commerce and Industry (FPCCI) Tariq Sayeed informed this.
Pakistan and Japan signed Design Study Report of rehabilitating 96-kilometer long Karraro-Wad section of the ECO highway (Karachi-Quetta-Chaman highway (N-25). Total cost of the project is Rs 2.4 billion. The government of Japan will provide Rs two billion grant for the project. It will be completed in 42 months.
08-06-2005
While ruling out the possibility of mini-budget, the government announced that stock market and real estate business were not taxed to expedite pace of growth by encouraging investment in these two key areas. Addressing the post-budget press conference, advisor to prime minister on finance and revenue Dr Salman Shah said new taxes could have negative impact on real estate and stock market business and finally result in flight of capital.
All shackles, hurdles and irritants have been removed in the way of sustained economic growth and to ensure people's participation in the stepped up economic activities in an investment-friendly environment. This was declared by Prime Minister's Adviser for Finance, Dr Salman Shah.
The improved economic scenario and the conducive environment are attracting investors, in all sectors of economy, to Pakistan. Dr Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment stated this during a meeting with Masood Ahmed, Director General for British Policy & International Department for International Development who called on him.
Prime Minister Shaukat Aziz described the national budget for 2005-06 as growth-oriented, saying it reflected continuity and consistency of policies and has something for everyone. He made these remarks while talking to Masood Ahmad, director general, Department for International Development of United Kingdom (UK) and British High Commission Mark Lyall Grant, who called on him at the PM Secretariat.
The Compressed Natural Gas Station Owners Association of Pakistan (CNG-SOAP) appreciated zero-rated duty on the import of complete knockdown CNG kits and Euro-II buses in the 2005-06 Federal budget. CNG-SOAP President Malik Khuda Buksh expressed these views after the announcement of the Federal budget. He said: "With the decision of zero-rated duty on CNG-related equipment, an investment of 200 million dollars is expected in the sector."
Quetta Chamber of Commerce and Industry President Sheikh Abdul Aziz, has termed the national budget for the fiscal year 2005-06 as a balanced budget, and said that the incentives announced in agriculture sector would help a lot to promote this sector agriculture in the country particularly in Balochistan.
An amount of Rs 459.7 million has been earmarked for 19 new and ongoing projects in the petroleum and natural resources sector during the year 2005-06, focusing mainly on exploration of minerals and training of human resources.
The government has earmarked Rs 454.235 million for 17 information and broadcasting division projects in Public Sector Development Program (PSDP), 2005-06. Almost all the projects are ongoing except one new project, i.e, upgrading and advancement of technology phase-I worth Rs 6.360 million.
Minister for Foreign Affairs, Khurshid Mahmood Kasuri has said federal budget 2005-06 would not only generate employment opportunities but also attract huge investments in the country. In his comments, Kasuri welcomed the federal budget and termed it balanced and investment friendly. He particularly pointed at the construction, housing and telecom sectors where country had registered an upward increase and hoped more investment in these areas.
Industrialists and businessmen have termed the budget 2005-06 as business-friendly, while there were mixed reaction from the salaried class. A number of businessmen expressed their satisfaction over the relief given to importers, exporters and industrialists. Islamabad Chamber of Commerce and Industry (ICCI) president Arif Sadiq said the budget was encouraging for business sector, as a number of relief packages have been announced for the business community, particularly reduction in duties on various items.
07-06-2005
The State Minister for Finance, Omar Ayub Khan, announced an incentive-laden 2005-06 budget, having total outlay of Rs 1.098 trillion with major tax relief to agriculture and industrial sectors as well as handsome increase in the government employees' pay and pension. The revenue target for CBR was revised upward to Rs 690 billion, against Rs 590 billion of the outgoing year. Fiscal deficit has been estimated at 3.8 percent for the next fiscal year. In his maiden budget speech in the Parliament, Omar announced reduction in taxes for several sectors.
The Central Board of Revenue (CBR) has announced a new scheme for the textile industry by reducing sales tax to zero percent on the import and supply of all items/goods and services utilised in the entire manufacturing regime of textiles. This will eliminate 60-65 percent of the overall quantum of accumulated sales tax refunds due to levy of GST. The CBR has also proposed to allow zero-rating scheme for carpet, leather, surgical goods and sports goods industries.
The Central Board of Revenue (CBR) has revised the existing slabs to reduce customs duty on the import of cars. The duty will be 50 percent on the import of vehicles having engine capacity of 1,000-1,500cc. Previously, 50 percent duty was charged on the import of 1,000-1,300cc cars. Now the engine capacity has been enhanced to 1,500cc. The duty will be 65 percent on the import of cars with engine capacity between 1,501 to 1,800cc. Previously, 70 percent duty was applicable on the import of cars with engine capacity of 1,501 to 1,800cc.
The government has reduced customs duty on the import of 1,870 items and duty on 16 items has been enhanced to protect the local industry.
The widely expected imposition of tax/duty or wealth tax, etc., on sale and purchase of landed/urban property, residential plots of different housing societies was not announced in the budget. The Central Board of Revenue's (CBR) proposal to levy tax on services sector to broaden the tax net is said to be rejected at the last moment.
The government's decision to allow tax exemption to insurance sector, abolition of customs duty on imports of spare parts for textile machinery and other allied industries, cut in bank rates and reduction in levies will help in improving the sentiment in the capital market.
The government has increased the share of the provinces in federal revenue receipts by 19 percent, to Rs 284.319 billion, in 2005-06 against Rs 239.157 billion during the outgoing fiscal. The share of Punjab has been increased to Rs 143.566 billion from Rs 120.334 billion; Sindh Rs 86.408 billion from Rs 72.678 billion; NWFP Rs 34.134 billion from Rs 28.525 billion; and Balochistan Rs 20.205 billion from Rs 17.620 billion.
The Central Board of Revenue (CBR) has enhanced the central excise duty on cigarettes to check smuggling and tax evasion. The impact of CED on cigarettes has been increased to favour the taxpaying units through readjustment of the excise tariff on the industry. According to the CBR officials, the price base of cigarettes has been readjusted. The CBR has also introduced a new provision of outright confiscation and subsequent destruction of confiscated counterfeit cigarettes.
The government has allocated Rs35.63bn billion for new and ongoing water projects for the current fiscal, indicating an increase of 63.5 percent against the outgoing fiscal year. Construction of main dam, intake embankment, land acquisition/compensation, infrastructure development in new city, Dhanghali bridge, Sukian dyke, Jari dam/rim works and resettlement works would continue during the year 2005-06.
The government has extended the period of Temporary Importation Scheme allowed under SRO 410 up to June 30, 2006 on the persistent demand of importers. The facility, which was due to expire on June 30, 2005, has now been extended up to June 30, 2006. The decision has been announced in the Budget 2005-06. The decision has been taken on the recommendation of the Commerce Ministry.
The overall positive revenue impact will be to the tune of Rs 18 billion, whereas the negative implications will be about Rs 14 billion due to the introduction of taxation measures in Budget 2005-06, which means that the net positive impact will be over Rs 4 billion. According to data compiled by the Central Board of Revenue (CBR), the customs duty will have a positive impact of Rs 1.2 billion, whereas its negative impact would be Rs 7.3 billion.
President General Pervez Musharraf described his three-day visit to the United Arab Emirates and Qatar as extremely successful, saying it would further consolidate trade and economic ties with the two rich Gulf countries. "My discussions with the leadership of both the countries were wholesome, we reached far-reaching agreements, which will underpin our excellent relations with fruitful interaction in the economic, trade and investment areas,".
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