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Sunday, 20 January, 2013

Despite Rs 400m offer, Dadu Sugar Mill sold for Rs 99m KARACHI

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AFTAB CHANNA

ESPITE receiving a lowest bid of Rs 400 million for the out of business Dadu Sugar Mill, the Sindh government, under influence and in violation of all formalities, sold the mill at a throw-away price of only Rs 99 million to Naudero Sugar Mill Limited, Pakistan Today has learnt. Interestingly, the industries and commerce department’s accounts reflect that the dates of auction of the mill fall in audit year 2011-2012. The Dadu Sugar Mill (DSM) was the property of Sindh Sugar Corporation Limited which was incorporated on July 21, 1976 with 100 percent equity of Government of Sindh as an unlisted public limited company. The company took over the management of DSM from the former Board of Management. The mill was established in the year 1977-78 with

a cane crushing capacity of 2,800 tones per day (TCD). The mill, since its establishment, could not manage to cover its operational costs, sustaining massive losses. In view of the situation, the industries department decided to dispose-off the sugar mill through the Sindh Privatisation Commission in 2002. The corporation invited bids on 26 June, 2002 and 28 September, 2002 through press media. In response to the advertisement, an offer of Rs 156 million was received which was much more or less equal to the assessed value of Rs 465.273 million, according to an audit report. The efforts made by the commission could not yield tangible results and it was decided by the cabinet committee on privatization in a meeting dated July 14, 2005 to liquidate the mill along with assets through the Sindh High Court. The official assignee was appointed through a court order dated September 8, 2006 with the directive to carry out liquidation of the Dadu Sugar Mill.

The official assignee invited bids during the period January 10, 2007 to October 18, 2007. The highest bid received was Rs 400 million against the assessed value, the report said. The industries department moved the case to the competent authority on September 11, 2007 for decision and the same was approved that the highest bid of Rs 400 million may be accepted without any conditions and any payment being made in installment. The decision however could not be materialised and the mill was not liquidated until May 2008. On May 7, 2008, the official assignee was requested again to expedite the process of re-auctioning of assets of Dadu Sugar Mill. The official assignee invited offers through various newspapers and the highest offer received was Rs 400 million but the

mill was sold for Rs 90 million to the management of Naudero Sugar Mills Limited. This resulted in a gross loss of Rs 375.273 million for the government. The matter was reported to the department in December 2009 but no reply was furnished. However, in the departmental accounts committee meeting held on 2 January, 2011 it was stated that the whole process was conducted by the official assignee of the Sindh High Court which remained cognizant of the facts that the competent authority accorded approval of the offer on 11 June, 2008. The reply of the management was not satisfactory as the mill was auctioned below the assessed value. When contacted, Secretary Industries and Commerce Zamir Ahmed Khan told Pakistan Today that he had no idea about the sale of the mill as it was done in tenure of another secretary, Ali Ahmed Lund. However, the Auditor General Sindh recommended that a high powered committee be constituted to investigate the facts of the sale of the mills below the assessed value.

Pakistan: the land of oPPortunities

Ambassador Basit invites German investors to invest in Pakistan BERLIN APP

Pakistan’s Ambassador to Germany, Abdul Basit has asked the German investors to take full advantage of the bilateral investment treaty which provided sovereign guarantees for foreign investment in Pakistan. Addressing a seminar on “Agriculture in Pakistan” on the sideline of the Green Week commenced in Berlin yesterday, the ambassador said Pakistan despite challenges was moving forward and had made many strides in different sectors of the economy. He said that with foreign investments and technology, Pakistan could not only feed its region but also

supply food around the world. The German side at the seminar was represented by Dr. Gred Mueller, State Secretary for Federal Ministry of Food, Agriculture and Consumer Protection. In his remarks, Mr. Mueller underlined the deep & diverse relationship between Pakistan and Germany. He said Germany was ready to assist Pakistan in developing its agricultural sector through German investments and technology. Mr. Michael Wiedmann, Vice President of Metro Group also attended the event and made a presentation on the Metro’s exceptional investment experience in Pakistan. He observed that Metro was fast expanding its presence in Pakistan as opening and doing business in Pakistan

was far easier than in any other South Asian country. Detailed presentations were made on investment opportunities in the agriculture sector of Pakistan by the senior officials of the Pakistan Horticulture Development and Export Company and the Sindh Board of Investment. The seminar was attended by scores of German businessmen. It was arranged by the Embassy of Pakistan in collaboration with the German Near and Middle East Association (NUMOV). NUMOV CEO Mrs. Helene Rang in her welcome remarks appreciated the opportunities offered by Pakistan in the agriculture sector. Packets of Basmati Rice and Kinnows were presented to the participants at the end of the seminar.

Indo-Pak trade dips at Wagah AMRITSAR INP

Blame it on recent tension between Indian and Pakistan over the beheading of Indian soldiers, Pakistan’s internal political turmoil or the inclement weather, the volume of trade between the two countries at Wagah border has dipped in the past one week. From 301 trucks carrying goods passing from Indian side to Pakistan a few days ago, the number had come down to 92 on Friday and so was the case with vehicles coming from Pakistan. Going by their past experience, businessmen were of the view that trade would come to a halt only in case of a war. A few traders, who were sceptical about the situation, were closely monitoring the developments. So, they were not signing fresh deals with their Pakistani counterparts. General Secretary of Customs Clearing Agents Association Dilip Singh said, “It is mainly due to rain that the volume of trade has dropped, but at the same time the importers and exporters are wary of escalating tension between the two nations and Pakistan’s volatile political situation.” “Next few days will tell the future course of trade through Attari,” said Singh. Federation of Karyana and Dry Fruit Commercial Association President

Apple, Google chiefs face grilling on ‘no-poaching’ SAN FRANCISCO APP

Apple chief Tim Cook and Google chairman Eric Schmidt are expected to face questioning in a lawsuit accusing Silicon Valley giants of secretly agreeing not to “poach” one another’s workers, according to officials and court documents. Plaintiffs’ attorneys said US District Court Judge Lucy Koh endorsed questioning Cook, Schmidt, as well as Intel head Paul Otellini, after reasoning that high-level executives would know about restrictions on hiring talent. During a hearing Thursday in her courtroom in the California city of San Jose, Koh referred repeatedly to email evidence that included a request in 2007 by then Apple chief Steve Jobs that Google stop recruiting Apple workers. While Cook was not mentioned in the email messages, it was reasonable to expect that his position as chief operating officer included being kept apprised of issues involving employee expenses, the judge said.

Boeing suspends 787 deliveries NEW YORK APP/AFP

Anil Mehra said, “There are several apprehensions in the minds of traders after recent turn of events at the border.” A senior customs official, declining to be named, said trade had come down only

due to weather and some technical issues. “Pakistan side of integrated check post (ICP) doesn’t have any infrastructure to handle the goods and are relying on the old infrastructure. We have also observed that

when prices of fresh vegetables are down in Pakistan market, their importers don’t take delivery of goods and wait till prices escalate which result in long queue of trucks on Indian side,” said Indian customs sources.

US aerospace giant Boeing said late Friday it had suspended deliveries of its new 787 Dreamliner jet until a battery problem is resolved, but continues to build the plane. “We will not deliver 787s until the FAA approves a means of compliance with their recent Airworthiness Directive concerning batteries and the approved approach has been implemented,” a Boeing spokesman said in an email. “Production of 787s continues,” he said. The Federal Aviation Administration on Wednesday ordered the grounding of US-operated 787s to address the battery problem after a damaged battery on an All Nippon Airways 787 forced an emergency landing. The risk of fire from overheating powerpacks has emerged as a major concern for Boeing’s cutting-edge new planes since the incident on the domestic flight in Japan, prompting airlines around the world to ground all 50 of the 787s in service.


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Business 02

Sunday, 20 January, 2013

Focus on exports other than textile, demands APAT LAHORE

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PPI

CONOMIC policies of the country should be revisited to increase its export varieties instead of depending on single sector of textile by exploring new international non-conventional markets of Africa and other regions, as textile sector shares just $700 billion in total world trade of $91 trillion. This was demanded by the All Pakistan Anjuman-e-Tajiran Central General Secretary Naeem Mir in a statement issued here yesterday. He said that the government should now focus on exports of non-traditional items, in view of their huge potential. He said every sector should search new markets to increase exports as cost of production had increased due to the energy crisis and Pakistani products were no more competitive for European and American markets. He said Pakistani industry could benefit from the EU market concessions only when it would produce in accordance with its potential. He said processing units could not be operated due to gas supply interrupted by outages. APAT leader said that jewellery, agricultural, dairy, livestock products and fisheries have great potential, as India exports gems and jewellery products of around $20 billion. He said agriculture sector figures were not available on TDAP website which exposed the negligent attitude of the government towards the sector of exports. According to

him the government should improve the infrastructure in this regard so that dairy and livestock sector could play its due role to increase exports. He said that promotion of biotechnology was the need of the hour. Trader leader asked the government to raise trade fund which was just Rs 60 billion- a small amount as compared to regional countries. He also asked the government to focus on promotion of regional trade for being more efficient in terms of cost and logistics, as the current regional trade consisted of just 17 percent. The inputs from the stakeholders would be more useful to develop a strategy of engagement with the regional countries which could benefit Pakistan’s economy, he maintained. “No doubt, Pakistan can play a pivotal role in transforming the region into a trade and manufacturing hub but that requires sincere commitment on the part of our commercial attaches who should play an active role rather than doing their routine and formal jobs” he maintained. In view of the ongoing power outages, high mark up and electricity tariff, worsening law and order situation, our industry was facing tough time in its survival. How it can compete with the regional countries, particularly India whose government was providing all kinds of facilities to the export industry, he added. He was of the view that the trade policy designed in consultation with the exporters and the stakeholders would help minimise negative impact on the country’s economy.

fCCi blames textile, commerce ministries for decrease in textile exports ISLAMABAD: Ministry of Industry and Ministry of Textile Industry should intervene for uninterrupted supply of electricity and gas to the industries due to which exports particularly textile exports of the country have suffered immensely, said Faisalabad Chamber of Commerce and Industry (FCCI) President Mian Zahid Aslam, here yesterday. He referred to his recent visit to ‘Heim Tex’ Germany Trade Fair – the largest one in the world and stated that 60% lesser orders were received to Pakistani textile exporters this year while Indian exporters received over and above their targets. On the other hand, Pakistan exporters faced critics for receiving orders from the foreign buyers in the Trade Fair. He maintained that this depicts loosing confidence and trust of foreign buyers to Pakistani exporters for non-compliance of their orders on time mainly due to the severe energy crisis that has aggravated recently. Criticising Ministry of Industry and Ministry of Textile, he said that both the Ministries were on the same page

Faisalabad industrialists give 2-day deadline to govt

for the deteriorating situation of industrial sector in the country as they did not contribute their due role for uninterrupted supply of electricity and gas to the industries. He continued that it was high time to take advantage of enough space that was available for Pakistani textile exports in the international markets due to slow growth of China and Indian economies and Pakistan textile specialises in home textile. He appreciated to the industrial manufacturers who were determined to run their industries in these odd and uneven industrial environments and proved that they would never close their operations and exert their energy and recourses to run their industries to the maximum. Government was not paying attention to the alarming bells for huge unemployment due to down-sizing of workforce in the industries if the current energy crisis prolongs further, he added. He emphasised that Ministry of Industry and Ministry of Textile should come forward immediately for interrupted supply of electricity and gas to the industries. INP

Businessmen not happy with IMF Mission chief’s statement ISLAMABAD ONLINE

FAISALABAD: Highly angered over power shortages, Industrialists in Faisalabad have given a two-day deadline to the government to restore gas supply to the factories, otherwise, units will be reopened by force. The industrialists on Saturday told media that thousands of workers were unemployed as factories remained shut for the last few weeks due to shortage of the gas. APTMA Chairman Rizwan Ashraf said that Petroleum Advisor Dr Asim had failed to fulfil his promise of restoring the gas supply by December 25. Ashraf said factory owners had to face huge losses due to ongoing gas crisis. INP

Indus Motor appoints Murakami as Vice Chairman KARACHI: Indus Motor Company (IMC) has announced the appointment of Mr K Murakami as the Vice Chairman and Director on its Board. He replaces Mr K. Hyodo, who has taken up responsibilities in Toyota Motor Corporation, Japan. Mr Murakami has been serving at Toyota Motor Corporation for over 30 years and has worked in different capacities primarily in the areas of Product Planning & Marketing Research. He has looked after Toyota’s business in Asia, Oceana and Middle East with various Toyota distributors. Prior to joining Indus Motor Company, Mr Murakami had served as Executive Director at UMWT which is the Toyota Distributor in Malaysia. PRESS RELEASE

Islamabad Chamber of Commerce & Industry (ICCI) shows serious reservation upon the statement of IMF Mission Chief that the bank would not write off or reschedule Pakistan’s loan. ICCI President Zafar Bakhtawari said that Pakistan had already sacrificed more than 50,000 precious lives for fighting war on terror. He said that IMF should reciprocate to the contributions of Pakistan and must adopt positive approach towards Pakistan. He said that business and industry could not face another due to monetary tightening and currency devaluation as our economy needed further support for economic revival. ICCI President cautioned that if soaring of mark up rates occur, new taxes were imposed and the currency devalues on the pressure of IMF, it would create serious problems for the business and the industry by further raising the cost of doing business and that phenomenon would prove detrimental for the economy.

He said that IMF rescue packages might not prove beneficial for the country in the long term as the packages always come with rigid and harsh conditions that will further slowdown the economic growth of our country. He said that soaring of loans, had put a great pressure on the economy and stressed that Government should avoid taking further loans and build its own capacity to generate revenues by taking positive measures and initiating growth oriented projects. Bakhtawari said that instead of seeking IMF support, Government should find a permanent solution to the country’s economic woes by practicing the policies of good governance, reducing non-development expenditures and investing in development projects which provide a platform for jobs creation and ultimately accelerate the pace of economic growth. He further said that it was the high time for economic managers to develop a comprehensive development plan for the country without external budgetary support.

NIBGE to hold 3-day training workshop on Rice FAISALABAD: A three-day training workshop on ‘DNA Testing for Basmati Rice Authenticity’ will start at National Institute for Biotechnology and Genetic Engineering (NIBGE) here on tomorrow. According to a spokesman of the NIBGE, the workshop will continue till Wednesday, January 23) in which rice experts would read their research papers. The training workshop will include lectures and practical on DNA extraction, PCR amplification, Quantification on Genetic Analyzer, Data compilation and result preparations. APP

profitepaper pakistantoday 20th January, 2013  

profitepaper pakistantoday 20th January, 2013

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