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BUSINESS Sunday, 30 June, 2013
pM for friendship with india SAYS BOTH COUNTRIES CAN COOPERATE TO MITIGATE ENERGY PROBLEMS
RIME Minister (PM) Nawaz Sharif on Saturday said his party had been pursuing a policy of friendship and cooperation with India. “A policy of amity would be followed to promote peace and prosperity in the region,” said the premier while speaking at a meeting with Pakistan-India Joint Business Council at the PM House. The PM said it had always been his utmost endeavor to bring people of the two South Asian neighbours close to each other so they could benefit from each other’s experiences. Expressing satisfaction over the visit of Indian businessmen under the auspices of Pakistan-India Joint Business Council, Sharif said it was reassuring that both sides were sitting together and talking to each other. The PM told the meeting that he had directed Minister for Water and Power Khawaja Asif to visit India and explore potential areas of cooperation between the two countries. Sharif told Indian businessmen that his government was following investorfriendly policies. “We are facing acute
power shortage in our country and any assistance in the power sector would help us in addressing the issue,” he added. Indian members of the business council said being located in the same
region and facing similar problems, India could be of great help in providing support in the fields of medical science, higher education and technical/vocational training.
Full support to Balochistan govt for exploring natural resources: Abbasi ISLAMABAD ONLINE
Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said in matters relating to natural resources of Balochistan, the federal government and the Ministry of Petroleum will provide support and facilitation to the Balochistan government. While chairing a meeting with a visiting delegation of Balochistan government led by Chief Minister (CM) Dr Abdul Malik Baloch, Abbasi said all decisions related to minerals and other natural resources of Balochistan are to be taken by the Balochistan government. “The constitution is clear in this regard and the ministry desires to facilities the Balochistan Government. It is now the responsibility of the Balochistan government to take wise and long-term policy decisions in the best interest of the people of the province and the federation of Pakistan as a whole,” the minister stated. Prominent lawyer and former caretaker law minister Ahmer Bilal Soofi
Centre, BaloChistan govt set up joint working group on reko Diq Islamabad: The federal and Balochistan governments agreed to set up a joint working group on the Reko Diq Gold Project in Chaghi, Balochistan. The understanding was reached during a meeting between Minister of State for Natural Resources Jam Kamal Khan and Balochistan Chief Minister (CM) Dr Abdul Malik in Islamabad on Saturday. The CM said an international technical and legal expert will be appointed for this project. The minister of state for natural resources assured that the federal government would support all decisions made by the Balochistan government. ONLINE
gave a detailed presentation to the meeting on the legal issues relating to the Reko Diq project. Balochistan CM Dr Abdul Malik said, “We will not go into the past. We have a relationship of trust with the present federal government of PML-N and Prime Minister Nawaz Sharif”. “We will go ahead with this mutual trust for the betterment of the people of Balochistan and will protect the interests of the province,” he pledged.
He shared with Abbasi the problems and constraints faced by the people of Balochistan and the provincial government on various issues Responding to the CM’s observations, Abbasi said the Reko Diq project was vital for the country. He said the project was highly technical and should be taken up on a commercial basis. He advised that legal and technical consultants of international repute be hired to address details of the terms of agreement of the project. The minister emphasised that longterm and consistent policy measures must be taken to win the trust of the investor, as rapid policy changes dilute the interest of the investor.
‘sMes to Be proMoteD through a MeChanisM’ LAHORE APP
Small and Medium Enterprises (SMEs) will be promoted through a coordinated and tailored mechanism, as these have a key role to play in the economic turnaround, said the newly appointed Punjab Industries Department Secretary Irfan Ali. While talking to the business community at Lahore Chamber of Commerce and Industry (LCCI) on Saturday, he said the development of local brands and human resource would be the prime areas for strengthening the SME sector that had been facing multiple challenges for the last five years.
“I will hold monthly meetings with LCCI to improve liaison as well as listen to the business community’s problems,” he said, adding that government was alive to the private sector’s issues and doing the needful. Though energy shortage and law and order kept the economy hostage during the last five years, the Punjab chief minister had a clear vision on the economic issues, which would help resolve their problems at the earliest, he said. The secretary, however, urged the business community to prepare recommendations to boost economic activities in the province saying the government would implement all their practical proposals without any delay.
LCCI President Farooq Iftikhar said, “Business community understands that the Punjab government is moving in the right direction and its seriousness on business issues will yield positive results.” He, however, urged the industries secretary that all stakeholders be taken on board while preparing industry-related policies, and asserted that industrial estates be exempted from load shedding of gas and electricity to meet the local market and export targets. He also expressed concerns over undue interference of Social Security Department, EOBI and Labor Departments and said tax refund claims were unduly delayed.
The meeting also discussed non-discriminatory market access and agreed that industrialists from both the countries should be provided a level-playing field. Minister for Information, Broad-
casting and National Heritage Pervez Rashid, Minister for Water and Power Khawaja Asif, Special Assistant to PM Tariq Fatemi and other senior officials attended the meeting.
18th CCg meeting organised by CCp ISLAMABAD NNI
The 18th meeting of Competition Consultative Group (CCG), an informal think tank set up by the Competition Commission of Pakistan (CCP) to solicit feedback and suggestions on competition related matters from the business community, legal community, academia, media, regulatory bodies and the government, was held in Lahore. The meeting was chaired by Dr Joseph Wilson, senior Member CCP, and also attended by Mueen Batlay, CCP member, and Ikramul Haque Qureshi, Director General/Registrar of the commission. Participants of the meeting included representatives of State Bank of Pakistan, Intellectual Property Organisation, Pakistan Engineering Council, Engineering Development Board, Institute of Chartered Accountants of Pakistan (ICAP), ACCA Pakistan, Lahore Chamber of Commerce and Industry, United Bank Limited, Saudi Pak Leasing, Linde Pakistan Limited, ICI Pakistan Limited, JS Private Equity, Earnst and Young, Daud Hercules Pakistan Limited, and daily The News. Dr Joseph Wilson briefed participants on various initiatives, actions, and achievements of CCP. He said CCP had recently been awarded fair rating with ‘‘arrow up’’ by the Global Competition Review (GCR), a London-based leading anti-trust journal, in its latest annual survey of the world’s leading competition authorities. The rating is stated by GCR itself to be a performance indicator recognising that “an agency is considered to make excellent use of its resources and has surpassed its previous accomplishments.” Dr Wilson quoted GCR as stating that CCP keeps moving from strength to strength. He said GCR in its survey has lauded the dedication of CCP’s enforce-
ment staff, termed the orders of CCP as “well reasoned and informed,” appreciated the leniency decision of CCP, and accredited CCP’s continued success to its chairperson, Rahat Kaunain Hassan, “who has worked hard to improve the core competencies of the authority and guard its precious independence.” Dr Wilson briefed participants on the 3rd International Conference of CCP held on 29-30 May, 2013 in Islamabad. The conference was attended by 22 competition law experts and senior officials of various competition agencies from America, Canada, Brazil, Mexico, South Africa, Kenya, France, Turkey, Sri Lanka and Portugal. Local participants of the conference included chief executive officers of various multinational and local companies in Pakistan, representatives of business associations, bar councils, academia, media and the government.The meeting was told that the conference discussed various key issues in areas of public procurement, linkage between competition and trade and investment, cartels and the significance of leniency and reward programs, and competition advocacy. He informed the meeting that a workshop for CCP’s enforcement staff was held on 30 May at CCP headquarters in which international experts shared their knowledge with the CCP team. The CCG members were also informed that CCP recently trained officials of the government of Afghanistan on competition law in a consultative experience-sharing programme organised by the United States (US) Department of Commerce, through its Commercial Law Development Program, in partnership with the US Federal Trade Commission (FTC) and CCP. Besides, the officials of Office of Fair Trade, UK, and Turkish Competition Authority recently visited CCP to train enforcement of CCP.
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BUSINESS B Sunday, 30 June, 2013
india not willing NETHERLANDS SEEKS COOPERATION to play by rules: IN PAKISTAN’S ENERGY SECTOR us lawmakers ISLAMABAD ONLINE
OP American lawmakers on Saturday criticised India’s trade and business policies, saying New Delhi was not willing to play by the rules. “When you look at India’s industrial policy, trade barriers, the rampant piracy, the tax discrimination and what appears to be an absolute disregard for our intellectual property rights, you realise that India is a country that is not willing to play by the rules right now,” Congresswoman Marsha Blackburn said at a Congressional hearing. “What’s worse is that they’re trying to gloss over this. And here’s an example. Last week, the Indian ambassador sent a letter to my office defending their abusive practices that are killing jobs of millions of hardworking Americans,” Blackburn said in reference to the letter sent by Ambassador Nirupma Rao. “India’s principles set a disappointing example to the rest of the world. No country that calls itself a friend of the US would celebrate isolationism the way that India is doing,” Blackburn said. “We have overwhelming bipartisan agreement in Congress that India’s government must reverse course or risk seriously threatening our bilateral relationship,” said the Congresswoman from Tennessee during the Congressional hearing on “A Tangle of Trade Barriers: How India’s Industrial Policy is Hurting US Companies”. The hearing was convened by the Commerce, Manufacturing, and Trade subcommittee of the Congress Energy and Commerce Committee. The letter written by the Indian ambassador to the US Congressmen was also made part of the record of the Congressional hearing as part of India’s position on the issues. Expressing deep concern over Indian policies related to intellectual property rights, Congressman Leonard Lance from New Jersey said the United States must exhibit leadership in the area of protecting intellectual property rights. “Emerging companies that adopt the Indian model of intellectual property policymaking also pose a risk to United States companies. We must make it clear to all trading partners that these policies set a bad precedent and undermine our mutually beneficial trade agreements,” he said. Congressman Peter Olson from Texas expressed his anger over the recent Indian policies, which he said were badly hurting American companies and called for taking actions against New Delhi. “Like all of you, my blood boils when I hear that India is revoking and denying patents and granting compulsory licenses for cancer treatments or adopting local content requirements,” he said. “As a nation, we should handle India like my dad did when I was growing up and I made his blood boil: He put his arm around me and/or pulled me where he would go, to make sure his fingers were resting firmly on my shoulder just to inflict some pain if I diverted from the course we would go down. That’s what we should do with their government,” Olson said.
Netherlands Embassy First Secretary/Head Economic Affairs Robert Dresen on Saturday said Netherlands had the technology and expertise to cooperate with Pakistan in solar, wind, coal & bio mass energy to mitigate its energy woes. During a visit to Islamabad Chamber of Commerce and Industry (ICCI) accompanied by Peter A Felix, he said Netherlands was amongst the top 20 economies of the world with a GDP of $ 820 billion while Pakistan was emerging as a huge consumer market. Netherlands wants to cooperate with Pakistan in power generation, energy saving, shipping, ports development, water purification, dairy farming agriculture etc. to achieve mutually
beneficial outcomes, he said. Located at the gateway to the European Union, which is the world’s largest single market, Netherlands was a global hub for innovation and high-tech value added products, he said. “Pakistan can reap rich economic benefits by improving collaboration with Netherlands in areas of mutual interest,” Dresen stated. He further said Netherlands had access to limited arable land, but due to advanced technology and best practices, it was the second largest exporter of agricultural products in the world. Pakistan could achieve phenomenal results in its agriculture productivity by having a close cooperation with Netherlands, he said. He said Netherlands had special technology and expertise in de-silting of dams and Dutch companies could help in de-silting of
Islamabad: Pakistan State Oil (PSO) plans to establish an oil refinery in Khyber Pakhtunkhwa (KP) even though no crude oil is available in the area for any new project. The region produces 8,000 barrels per day and cannot make commercially viable, a new refinery with 36,000 barrels per day capacity. PSO has planned to establish an oil refinery in KP (Karak) to cut back oil imports at an estimated cost range of Rs 750 million. The refinery has been planned in an area where total crude oil production was more than four times lower than the capacity planned for the project. The total oil capacity of the province is 7,843 barrels per day while the PSO planned refinery has a total capacity of 36,000 barrel per day. Besides this, the law and order situation in the area is not ideal and security is a big concern for foreign investment in the area. Sources said crude oil available in the area is committed for Attock oil refinery and per law no extra crude oil was available for such a project. Attock oil refinery in Rawalpindi already has a long-term contract for about 7,000 barrels per day. In this regard, when contacted, a PSO official said, “We are in a process to award contract for pre-feasibility of the project”. He said the projected crude oil availability both from MOL and OGDCL will be sufficient to run the refinery. He further said the government was aware about the security concerns and appropriate steps would be taken to provide security cover to the project. O NL IN E
Tarbela and Mangla dams which would help Pakistan improve energy supply. He said Pakistan could also benefit from Dutch Private Sector Investment Program which aimed to stimulate growth and create jobs in emerging markets. Speaking at the occasion, Zafar Bakhtawari, president, ICCI, said energy shortage had badly affected trade and industry and stressed that Pakistan should seriously consider Netherlands’ cooperation, especially for de-silting of its dams to increase cheap hydro power. He said bilateral trade between Pakistan and Netherlands was still below one billion dollars while both countries had good potential to work together in many areas including energy, IT & high-tech industries, agriculture, dairy farming, logistics, chemicals, water, environment etc.
Govt cuts down interest rates on National Savings Schemes ISLAMABAD ONLINE
The government slashed interest rates on various products of National Savings Schemes (NSS) in line with reduction in the discount rate policy unveiled by the State Bank of Pakistan (SBP). According to announcement made by CDNS, as a consequence of reduction in discount rate by SBP, the government has revised interest rates on NSS for the investment made on or after July 1, 2013. The instant revision is made in the backdrop of current market scenario and in accordance with the government’s policy to provide market based competitive rate of return to investors of national savings.
Per notification issued by the federal government, the new rates for special savings certificates, regular income certificates, defence savings certificates and savings accounts have been fixed at 8.92 percent, 9.72 percent, 10.36 percent and 6.00 percent, respectively. The new rates for short term savings certificates of three months, six months and one year have been fixed at 8.45 percent, 8.50 percent and 8.55 percent respectively. The profit rate of return for specialised savings schemes i.e. Bahbood Savings Certificates and Pensioners’ Benefit Account has also been revised and fixed at 12.24 percent in order to provide safety net to specialised segments of society.
laHORE: sikandar mustafa Khan, Chairman millat Group of Companies, hands over the keys of 32,000th massey Ferguson Tractor to a farmer. PR
usaiD launches $150m ppii with js private equity dUbaI: The US Agency for International Development (USAID) Administrator Dr. Rajiv Shah, announced the Pakistan Private Investment Initiative with JS Private Equity Management and Abraaj Group. The Pakistan Private Investment Initiative will launch two new private equity funds focused solely on Pakistan’s dynamic and fast growing small- and mediumsized businesses. USAID will provide a seed investment to capitalize the funds and JS Private Equity Management and Abraaj Group have committed to match or exceed these seed funds with investments of their own, as well as private funds raised from other limited investors. “We are seeding individual funds with $24 million each. JSPE and the Abraaj Group and will match or exceed our commitment. We fully expect
them to exceed that contribution,” said Dr. Rajiv Shah. “Pooled funds will initially be $100 million which we expect will grow many fold into hundreds of millions of dollars in investment for small and medium businesses.” By investing in Pakistani private businesses, the United States is supporting private sector growth and job creation - and Pakistan’s role as a robust and fast-growing economic partner among its neighbors and within the global economy. The announcement came at the end of the first day of a U.S. government-sponsored investment conference on Pakistan. “By partnering with JS Private Equity Management and Abraaj, USAID would capitalize on these companies’ expertise to make smart investment decisions that will grow the Pakistani economy, create jobs, and generate profits for investors who seize the economic opportunities that Pakistan presents,” Administrator Shah said. Ali Siddiqui, the Chairman and CIO of JS Private Equity Management said “We are excited to partner with USAID in this new effort to invest in our country’s dynamic enterprise sector where our joint efforts will create many jobs and expand incomes.” The Pakistan Private Investment Initiative is a new approach that will identify promising businesses with growth prospects and invest in them to expand their market share, innovate product and service lines, and ultimately create jobs and increase incomes. In addition, the Pakistan Private Investment Initiative is expected to demonstrate that investing in growth-focused enterprises can generate real profits for investors. This demonstration effect is expected to attract more investment into the enterprise sector through establishment of additional private equity funds. JS Private Equity (“JSPE”) was founded in 2005
to invest in high-growth Pakistani businesses. JSPE is managed by a professional team with unparalleled experience of private equity investing in Pakistan. JSPE manages Pakistan’s first dedicated private equity fund, JS Private Equity Fund I, whose investors include Development Finance Institutions such as International Finance Corporation and Asian Development Bank. PRESS RELEASE
haier introduces new stainless steel referigerators laHORE: The newly introduced Haier Stainless Steel Series refrigerators are now on sales and display in all major home appliance markets in the country. The new series is a practical fusing together of ‘brains and brawn’, in other words a bonding of beautiful shiny looks, long lasting strength and high performance. Let us talk performance first.How about making 1.5 liters of ice in just 2.5 hours. Try it and you will be in for a cool surprise. The Stainless Steel Series also comes with a big heart – it has masses of room to take in lots of fresh produce – fruits and vegies, tinned stuff, beverages, butter and the large freezerwill accommodate a decent supply of raw meat and preserve it instantly through Haier’s “Fast Freeze” technology. All this and much more like the energy saving feature is wrapped in beautiful, shiny stainless steel imparting great looks that will enhance the décor of any modern kitchen. So don’t ask for a refrigerator, ask for Haier Stainless Steel Series. PRESS RELEASE
teradata to launch teradata applications in pakistan KaRaCHI: Teradata (NYSE: TDC), the leading analytic data platforms, applications and services company, today announced it has signed a reseller agreement with TouchPoint Group, based in Karachi, Pakistan. TouchPoint, a leading ATM hardware and management service provider serving the banking sector, will be a local reseller partner for Teradata in Pakistan, focused on Teradata Applications solutions. Teradata and TouchPoint will build on their respective strengths to provide service and solutions to customers in the Pakistan banking industry. “Today’s business environment is highly competitive, and Teradata Applications help companies overcome their toughest marketing decision-making challenges. I am confident that with TouchPoint’s insight into the banking sector, combined with Teradata’s solutions, a partnership of excellence will be established, benefiting customers,” said Khuram Rahat, managing director, Teradata Pakistan. PRESS RELEASE
RaWalPINdI: Ijaz Hussain, amir Hussain, sultan Fateh ali and Umaid ali perform during a musical evening organised by the Pearl Continental Hotel Rawalpindi in collaboration with mausikaar. PR