12-13 Business Pages (24-11-2013)_Layout 1 11/24/2013 12:06 AM Page 1
BUSINESS Sunday, 24 November, 2013
Bold suggestions for improving economy! ISLAMABAD: Economist Dr Shahid Hassan Siddiqui has said that the prime minister has realised that for the improvement of economic conditions, short, medium and long term planning is necessary. Talking to Radio Pakistan, he said the government had to take some bold steps for the improvement of economy including imposition of taxes on every kind of income, converting black economy into white and eradication of corruption. He said tax potential is eight thousand billion rupees annually but only two thousand six hundred billion are collected which directly affects economy negatively. He said there is a need to give incentives to investors besides providing them a conducive atmosphere for investment. He said that the atmosphere for investment has been hostile due to the war against terrorism. Renowned economist Dr Abid Qayyum Sulehri also said that government has to tackle energy crisis, economy and extremism simultaneously which proved to be a big challenges. He said that the Prime Minister in his speech stated that sectarian issue could be controlled by imposing ban on loud speakers. He said government is on the right track to achieve the vision of 2025. He said financial resources are very essential for long term economic development. Senior analyst Dr Mehdi Hassan said that long term planning is necessary to address the problem of education sector. APP
Pak ranked seven with over 186b tonnes coal reserves ISLAMABAD: Pakistan is ranked 7th in the world, having around 186 billion tonnes of coal reserves, sufficient to meet the country's future power generation requirements. Talking to APP, an official of Ministry of Petroleum and Natural Resources said Sindh is the richest province having 185.457 million tonnes coal reserves, followed by Balochistan with 458.7 million tonnes, the Punjab 235 million tonnes, the Khyber Pakhtunkhaw 122.99 million tonnes and Azad Kashmir 09 million tonnes. A major portion of coal reserves of Punjab are situated in the salt range. The reserves are mainly located in four districts, Jhelum, Chakwal, Khushab and Mianwali, he said. He said the coal field covers an area of about 260 square kilometres. APP
The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time. — Henry Ford
Govt lost $2.5b KCR project due to lack of interest ISLAMABAD
he reason behind the shocking news made public by Federal Minister for Railways Khwaja Saad Rafiq that Japan has lost interest in the much-waited Karachi Circular Railway (KCR) project, to be funded by Tokyo, is nothing but lack of interest of the Pakistani government towards the project. Despite completing surveys, studies, repeated inspections by Japanese teams, documentation, feasibility reports, planning for resettlement of thousands of project affectees and allocation of lands, during the past over five years of the project, the foreign investment of $2.5 billion was now reportedly being diverted to Bangladesh. even during the process completed so far the lack of interest was apparent on both sides of the federal and provincial governments. Interestingly, this was the second mega project in Karachi after Bus Rapid Transit System (BRTS) being deprived of agreed foreign investment only because of the lack of interest and poor cooperation among the center, the province
and the city government having stakes in the project. earlier, Asian Development Bank (ADB) in 2009 had refused to fund BRTS project of the city citing the lack of cooperation between city government (now Karachi Metropolitan Corporation) and Sindh government as one of the major reason. The bank had agreed to finance the over Rs 500 billion project which is still left in papers. According to insiders, though the federal and provincial governments have announced to work together to speedily remove impediments on the way of implementing the project for convincing Japanese government to keep the investment plan intact, the KCR project was still not a priority of
the government. Only because of the delay for years, the cost of the project was revised from $1.58 billion to $ 2.5 billion. A small technical issue of releasing the project’s fund from Japan to the project implementing body while avoiding the government’s cut against risk rate, and interest rate, was resolved in around two year. “If there is a will, a commissioner can vacate all the encroached land of KCR and pave the way for implementation of the project,” a concerned official at provincial government said in terms of anonymity. According to him, all necessary arrangements have been made to resettle the thousands of affectees of the project and with completing studies and surveys the project is
THOUGH THE FEDERAL AND PROVINCIAL GOVERNMENTS HAVE ANNOUNCED TO WORK TOGETHER TO SPEEDILY REMOVE IMPEDIMENTS FOR CONVINCING JAPANESE GOVERNMENT TO KEEP THE INVESTMENT PLAN INTACT, THE KCR PROJECT IS STILL NOT A PRIORITY OF THE GOVERNMENT
Iran invites India, China to join gas pipeline TEHRAN OnLine
An Iranian deputy oil minister called on India to join an under-construction pipeline project to carry natural gas from Iran to Pakistan. Ali Majedi, who is a deputy minister for international and commercial affairs, said Iran expects India to overcome its doubts and join the pipeline, previously known as Peace Pipeline, reported FARS news agency. “If India joins the pipeline, the interests of all three countries – Pakistan, India and Iran – will be guaranteed,” he said. “Given the initial design of the Peace Pipeline, even China can join this pipeline,” he said. energy-thirsty India has already voiced its interest in the pipeline, but it has been dragging its heels on joining the project due to security concerns over the section of the pipeline cutting through Pakistan. Majedi said Iran has met its obligations regarding gas exports to Pakistan, adding: “Iran has heavily invested in this pipeline project and has constructed its own section of the pipeline.” “Pakistan is required to construct pipeline to take delivery of gas from Iran, but it has taken to serious action to that effect,” said Majedi. Initially, a 2,700-kilometer pipeline
now on the stage of signing loan agreement between Pakistan and Japan. The development on such stage was not only unfortunate but shocking. It was mainly because of low priority of the governments that discouraged Japanese government which was much interested in the project for providing modern, rapid and low-cost transportation facilities to Karachiites. “Tokyo even had recently reduced its markup rate from 0.2 to 0.1 percent of the loan in order to further facilitate the project,” he said adding: “now intervention at prime minister-level was needed to get the investment back in the country which is already crying for foreign investment.” however, some other sources also claimed that fresh development was because of the financial issues in Japan. It is to be mentioned here that the KCR project initiated to mitigate traffic problems in the metropolis was to be funded by the government of Japan through the Japan Bank of International Cooperation (JBIC). Tokyo had commissioned 100 per cent funding for the project under ‘STeP Loan’ at 0.2 per cent (now 0.1pc) markup rate for a 40-year payback time including a 10-year grace period.
SAARC CCI hails govt for organising ‘Vision 2025 Conference’ ISLAMABAD APP
was planned to be constructed for Iran to pump 60 mcm/d of natural gas to Pakistan and 90 mcm/d to India. India backed out of the project in 2007, citing security concerns on the Pakistani territory. After that, Iran and Pakistan decided to go it alone. Pakistan which struggles with gas shortage losing 2 billion dollars each year mainly because it has not yet decided how to meet its gas needs. Imports from Iran, construction of TAPI and LNG imports are the main options the country can resort to in order to meet its gas needs. Iran is expected to start exporting gas to Pakistan in 2014.
Iran has heavily invested in this pipeline project and has constructed its own section of the pipeline ALI MAJEDI IRANIAN DEPUTY OIL MINISTER
The SAARC Chamber of Commerce and Industry (SAARC CCI) on Saturday hailed the government for successfully organising a seminar on 11th five-year development plan and "vision 2025-stakeholder's conference". SAARC CCI Vice President Iftikhar Ali Malik, in a statement, appreciated the government for taking the stakeholers on board while formulating the five-year development plan and Vision 2025. he said such an initiative of the government would restore the confidence of local as well as international business community and generate more economic activities to further strengthening the national economy. Malik said for the first time in the country's history, the government had given due representation to the private sector in policy making, which was a positive omen. he said the government had given 60 per cent representation to the private sector in a high power advisory committee of the Planning Commission of Pakistan. The conference, he said, which was attended by over 1,000 professionals and experts from public and private sectors, would help address challenges the economy was facing.
MORE INCENTIVES WILL BE PROVIDED TO INVESTORS: OPF MD ISLAMABAD inP
Overseas Pakistanis Foundation (OPF) Managing Director Iftikhar Babar Saturday said that following the government’s vision 2025, an exclusive business conference of overseas Pakistanis will be convened soon. he said more incentives would be provided to attract overseas Pakistani investors including establishment of exclusive economic zones for overseas Pakistani investors. The MD expressed these views while chairing a meeting held at OPF head Office which was attended by Members OPF Board of Governors, renowned overseas Pakistanis and senior officials of OPF and Planning Division to discuss how overseas Pakistanis can contribute in economic growth of Pakistan. The meeting discussed and reviewed a number of short and long term schemes and initiatives for Overseas Pakistanis. The MD informed the meeting that there are various projects and schemes of OPF where overseas Pakistani investors can invest freely.
he offered the Pakistanis expatriates to invest in OPF housing, health and educational Schemes. he said OPF has been delivering in different walks of life involving Welfare, health and education. he informed the meeting that the foundation wanted to establish hospital exclusively for Overseas Pakistanis and their dependents. he further told the meeting that OPF educational and Vocational Institutes have been upgraded and efforts are made to provide more and skilled labour abroad. he said that OPF has requested Capital Development Authority (CDA), Lahore Development Authority (LDA) and Karachi Development Authority (KDA) to reserve quota for Overseas Pakistanis in their housing and Commercial Schemes. The member of OPF Board of Governors, Shamshad Ali Siddiqui, Asghar Qureshi and Khalid Choudhry appreciated efforts and services rendered by Managing Director OPF for welfare of Overseas Pakistanis. They stressed on continuity of policy, political stability and improvement of law and order situation in the country to attract overseas investors.
12-13 Business Pages (24-11-2013)_Layout 1 11/24/2013 12:06 AM Page 2
In the business world, the rearview mirror is always clearer than the windshield. — Warren Buffett
BUSINESS B Sunday, 24 November, 2013
LAHORE: A shopkeeper displays dry fruit to attract customers. inP
IMPORTERS SEEK ONE-TIME AMNESTY IN ALL PENALTIES SHOW CONCERN OVER NONCLEARANCE OF OLD STUCK UP CARGOES AT KARACHI PORTS ISLAMABAD inP
A delegation of local importers visited the Islamabad Chamber of Commerce and Industry and expressed serious concerns over the accumulating demurrage and
detention charges by ports authorities and shipping companies on cargoes lying since long at Karachi ports and called upon the government to consider giving onetime amnesty in such penalties for early clearance of these cargoes. The delegation informed that many cargoes are held up at Karachi Port and Port Qasim for the last many years because due to unfavourable business environment during last three years, importers could not get cargoes cleared on time. Resultantly, the values of demurrage and detention charges on such stuck up cargoes have now exceeded their actual value and the importers are unable to get their clearance. Therefore, they
urged that government should provide a one-time amnesty by waiving off demurrage & detention charges on all such stuck up commercial cargoes so that importers could get their early clearance. Addressing the delegation members, Shaban Khalid, President, Islamabad Chamber of Commerce & Industry said that Karachi Port Trust (KPT) had reduced free period of cargo clearance from 10 to five days with average dwell time in less than 7 days to reduce rush and make cargo handling smooth & efficient, but increase in stuck up cargoes at ports is foiling such efforts of KPT. he said due to non-clearance of such cargoes, not only the importers are suffering huge losses; the gov-
ernment is also losing revenue of billions of rupees on account of sales tax, income tax, customs duty, excise duty and cargo handling charges while the stuck up cargoes are creating more congestion at the ports. he said government should take urgent notice of this serious problem and consider giving one-time amnesty in demurrage & detention charges on all commercial cargoes lying since long at ports. he said it will be a win-win solution as it will not only facilitate the businessmen in early clearance of their consignments, it will also improve revenue generation for the government, reduce unnecessary congestion and lead to smooth handling of cargoes at the ports.
CORPORATE CORNER Mahgul for Nasreen Shaikh introduces debut luxury collection
repetitive with uniform like outfits. Our vision is to keep the emphasis on the entire look rather than just the garment and The Timurcollection specificallylooks to inspire the less is more concept in terms of luxury embellishment, concentrating more on the entire silhouette rather than just endless embellishment”. PreSS reLeASe
PC Rawalpindi launches Mexican Food Festival
LAHORE: Mahgul for Nasreen Shaikh debut their luxury bespoke and pret a porter collection, ‘The Timur Collection’ this November, pret a porter pieces of which are now available at the PFDC, Ensemble and L’atelier in Lahore, Ensemble in Karachi and L’atelier in Islamabad and bespoke pieces, ready to order. Based in fabrics such as satins, silks and georgettes, The Timur Collection is embellished with unique mother of pearl inlay as well as detailed threadwork, and is cut in an altogether shorter silhouette channeling crop tops and high waisted skirts specifically, with a colour focus on jeweled reds, yellows and blues. Speaking about the Timur Collection, creative head at the brand Mahgul Rashid said: “The inspiration behind this collection has been the idea of versatility - the challenge to create pieces that are original and not
ISLAMABAD: It’s a Mexican party of flavors in the MARCOPOLO RESTAURANT at Pearl Continental Hotel, Rawalpindi. For a spicy taste of Mexico right here in Rawalpindi, take a bite from the Mexican Food Festival in the Marco Polo Restaurant at the Pearl Continental Hotel, Rawalpindi until November 30, 2013. In his welcome address, Mr. Aamir H. Kazi General Manager, Pearl Continental Hotel, Rawalpindi welcomed the distinguished guest and said that the Mexican Food Festival is in series of various cultural events organized by the Hotel aims to show case the FUSION of the CULTURES. Aamir H. Kazi, said “our focus is to serve genuine mexican
ISLAMABAD: ICMAP Toastmasters Club and IBC held Annul Speech Contest among member of ICMAP Toastmasters Club on 20th of Novemebr at ICMAP, Islamabad. Chief guest was Mr. Mohsin Lodhi while participants included Yasin Butt, Nawaz, Yousaf Khan, Qamar, Muhammad Imran and Asif Hafiz. Pr dishes and the hotel chefs participating at the Mexican Food Festival would delight the visitors with their rich culinary expertise and one of the charms about Marco Polo restaurant cooking is its authenticity and the guest just love it!” The Hotel chef, Mr. Azeem Khan, said “genuine Mexican cuisine’s big difference with Tex-Mex dishes like fajitas or burritos is its heady complexity of spices. “To cook Mexican cuisine, you need to use fresh ingredients and spices such as garlic, onion, cilantro, poblano, habanero and Serrano,” he added. “Most Mexican dishes are either grilled or
pan fried, which uses a little amount of cooking oil. The simplest Mexican dish is Ceviche Acapulco style, in which we marinate fish with garlic, onion, coriander, salt, pepper, lemon juice and olive oil until the meat of the fish is cooked by the lemon juice, and then it’s ready to eat,” he explained.Mr. Faisal Rehman, Director Food & Beverages of the Hotel told “In the over a week food festival, we have prepared four menus, to be served on an alternating schedule. Among the main dishes are fish fillet Veracruz- style, shrimp and Mexican style beef strips”. PreSS reLeASe