Pakistan's Economy - News and Updates

[ameer219]

THE RUPEE: dollar stays put

RECORDER REPORT

Business Recorder [Pakistan's First Financial Daily]

KARACHI (April 16 2010): Steady trend was seen on the local currency market on Thursday as the rupee retained the overnight levels in process of trading, experts said. On the interbank market the rupee held the overnight levels against dollar for buying at 83.85 and selling at 83.89, they said.

It is expected that the rupee may move both ways in the near future, they said. During the fourth Asian session dollar was on the defensive while commodity currencies like the Australian dollar held broad gains on a pick up in risk appetite and growing speculation that China may soon move to re-value its currency.

A slew of Chinese data are due shortly, including first-quarter gross domestic product, March industrial output, retail sales and urban investments. Sources have indicated China's economy grew about 11.9 percent in the first quarter, a strong number, and likely to underpin the Aussie. Additionally, offshore dollar/yuan forwards mostly fell to imply more yuan appreciation in late trade on Thursday as China posted surprisingly brisk growth in the first quarter but softer inflation figures helped to temper concerns over imminent policy tightening. The three-month dollar/yuan non-deliverable forwards (NDFs) fell briefly to an intraday low of 6.7400 bid in late trade from Wednesday's close of 6.7580, implying 1.28 percent yuan appreciation in three months, up from 1.01 percent implied at Wednesday's close.

Malaysian ringgit - a proxy for the yuan - gained after Chinese data reinforced views that the country's growth was accelerating and Beijing may soon to re-value its currency. The Taiwan dollar rose to a 19-month intraday high, continuing its string of gains along with other Asian currencies amid optimism for economic recovery following China's strong growth data. Bangladesh, interbank buying and selling rates for taka against dollar at 69.2510 and 69.2580, (previous 69.25/69.26).

 

[Luftwaffe]

Reko Diq: Pakistan’s $100 billion gold mine
The Editors Rupee News

A few weeks ago we mentioned Reko Diq in front of Pakistani friends. Since they did not know about it they made fun of us. Many believe in gora sources only. Here is another story published by Business Week/Bloomberg about the colossal Gold and Copper mines of Pakistan. The mines are so huge that the gold has been estimated at around $100 billion.

This is a national treasure.

The fi.lthy hands of corrupt politicians should be kept out of the tilly. These mines should pay off the debt and build an additional 60,000 schools, and hire 60,000 teachers (needed for 100% literacy), and 5000 hospitals (universal healthcare requires about 1000 additional basic health facilities). Dr. Farrukh Saleem has calculated the cost of schools and hospitals at only $10 billion.

The citizens should take this cause–put this in a national trust with Edhi or/and KPMG/Price Waterhouse as the accountants. The National Press should monitor this on a daily basis.

Antofagasta to Seek Pakistan Mining License After ?Good? Talks - BusinessWeek

March 9 (Bloomberg) — Antofagasta Plc, the copper producer controlled by Chile’s Luksic family, will seek a mining license for a site in Pakistan that may rival its largest project after “very good” talks with the head of the provincial government.

“We are hopeful because in the last two months there’s been a very positive approach,” Chief Executive Officer Marcelo Awad said in London today. “We have met with the chief minister in Baluchistan, which was very difficult before, and he was very open and very straightforward. It was a very good meeting.”

Antofagasta will seek the license in mid-2010, he said.

The comments mark a shift from a year ago when Awad said Antofagasta, which shares three-quarters of the Reko Diq site with partner Barrick Gold Corp., needed clearer mining laws before it could invest in the development. Reuters in January reported the government, which holds the remaining quarter, planned to cancel the $3 billion project’s exploration license.

“Now they know us for the last three years,” Awad said in an interview. “They have visited Chile and seen our facilities and Barrick’s facilities. They have confidence in us.” The region had poor experiences with prior mining licenses, he said.

Antofagasta planned output of more than 350,000 tons of copper and 900,000 ounces of gold at Reko Diq, in excess of Los Pelambres, its largest mine, Awad said in April. He said at the time that talks had advanced “very slowly.”

The main concern was that foreign companies may report lower metal content than they produce, he said in the interview. “That may have been possible in the past but now with the current equipment it’s impossible. We gave them assurances.”

Final Stages

Resources at Reko Diq are estimated at 4.1 billion tons with a copper grade of 0.5 percent and a gold grade of 0.291 gram a ton, according to Antofagasta. The company plans to boost Los Pelambres output to 407,000 tons in 2010, from 311,600 tons.

“To apply for the mining license you have to present a feasibility study and impact environmental assessment,” Awad said. “They are in the very final stages now.”

The London-based company may be interested in buying companies in Peru, Australia and the U.S. as it seeks to diversify beyond its projects in Chile, Awad said.

“We’ll be looking all the time, but not aggressive,” he said. “We’re a conservative company. We’re looking for companies in a place where we can dig around and expand.”

Antofagasta is interested in businesses with a minimum annual output capacity of 70,000 tons of copper, he said. Excluding acquisitions, the company plans annual production of the metal of 1 million tons within five years, Awad said.
–Editors: Tony Barrett, John Deane

 

[ameer219]

EPZA registers 42% growth in exports

KARACHI: The exports from Export Processing Zone Authority (EPZA) during the month of March 2010 showed a record growth of 42 percent despite the economic recession. It indicates that EPZA is doing well to complete its mandate to enhance the exports. In the economic growth of country, the performance of EPZA has been a major contribution attaining enhanced vigour with the change of management. According to statistics released by EPZA, the exports during the month of March 2010 jumped to 42 percent i.e. Rs 1.9 billion as compared to Rs 1.3 billion in corresponding month of the last year. The export performance in the month under review was the highest recorded in any month of the current year.


Further, exports from July 2009 to March of 2010 have shown an average of 12 percent growth over the corresponding period of last year. Looking at the rapid changes in global markets and shift of buying power, the EPZA believes that level of participation by business houses of EPZA will take a lead in industrial growth and export if incentive packages at the level of FBR are not altered, as has been the case in the levy of with-holding tax on electricity. EPZA pointed out that during the recent global recession, which resulted in the shrinkage of developed economies, EPZA maintained rising trends in the exports. staff report

Daily Times - Leading News Resource of Pakistan

 

[Hyde]

Development projects: government to monitor progress via satellites​

ISLAMABAD (April 16 2010): Federal government has decided to monitor progress of development projects through satellites, linking the payment schedule to the updated scientific images supporting the achievement of desired benchmarks, sources close to Planning Division told Business Recorder on Thursday.

The government is already using satellite technology to monitor crops growth and the results are far better than on site inspections conducted by the officials of Ministry of Food and Agriculture (Minfa) and provincial food departments. This plan has been discussed during the visits of President Asif Ali Zardari to Balochistan and other provinces where he was apprised that further payment to the project execution agencies should be linked to the progress.

The sources said, during his interaction with the leading notables of Balochistan and his visit to the province in February 2010, the President expressed desire that mega infrastructure projects be planned and implemented as full package, addressing the needs of the rural population.

Towards this end, President suggested the following broad guidelines that are now being pursued by the Prime Minister secretariat. This is for the first time when the government will seek help of Suparco for collecting data on development projects, as billions of rupees go waste due to delay in timely execution of development projects.

The guidelines given by the President to the federal government with regard to project's implementation:

(i) exploitation and development of sites for mega infrastructure projects should be adequately mapped up front through satellite imageries and implementation benchmarks identified;

(ii) documents for award of contracts should contain relevant information for periodic monitoring of the projects through satellite maps and linking up the payment schedule with the updated satellite image supporting the achievement of benchmark so identified;

(iii) systematic and institutional arrangements for electronic monitoring and tracking of implementation status of mega projects;

(iv)all progress reports and project presentations in future be substantiated with relevant satellite images of the sites;

(v) Planning Commission and relevant Ministries should be linked up electronically for the purpose of real time e-monitoring of the projects as and when needed;

(vi) there should be a monitoring window duly supported by information technology infrastructure housed in the President secretariat as well.

Any project for construction of storage dams, small/medium dams, to have an in-built package for supporting infrastructure for development of the command areas which could, (i) include enhanced agricultural productivity, (ii) lining of water courses where necessary, (iii) transfer of state land ownership to women beneficiaries, (iv) capacity enhancement of local communities with respect to more useful agriculture practices, (v) possible linkage of the deserving communities with Benazir Income Support Program (BISP), (vi) cards for buying agriculture implements and renewable energy solutions etc.(vii) other supporting activities including soft loans/ micro credit etc leading to optimal socio-economic empowerment of the communities could subsequently be added as independent products to BISP cards, where possible.

The sources said, Prime Minister Secretariat has directed all the concerned Ministries and agencies to take necessary actions for implementation of the decisions initiated accordingly and a compliance report be furnished to the Prime Minister.

 

[ameer219]

IAPEX exhibition: 'Pakistan has all resources to compete in global market'

Business Recorder [Pakistan's First Financial Daily]


KARACHI (April 18 2010): Pakistan has competitive enough human resource and state-of-the-art infrastructure available in the industries to compete in the global market.

Locally produced building materials, tiles, home decor, fixtures/fittings are at par with international standards, which will expand the export base and generate foreign exchange for the country.

These views were expressed by the construction and designing experts at the inauguration of the sixth IAPEX Int'l Exhibition 2010 here in Expo Centre Karachi.-PR

Copyright Business Recorder, 2010

 

[ajpirzada]

Development projects: government to monitor progress via satellites​

ISLAMABAD (April 16 2010): Federal government has decided to monitor progress of development projects through satellites, linking the payment schedule to the updated scientific images supporting the achievement of desired benchmarks, sources close to Planning Division told Business Recorder on Thursday.

The government is already using satellite technology to monitor crops growth and the results are far better than on site inspections conducted by the officials of Ministry of Food and Agriculture (Minfa) and provincial food departments. This plan has been discussed during the visits of President Asif Ali Zardari to Balochistan and other provinces where he was apprised that further payment to the project execution agencies should be linked to the progress.

The sources said, during his interaction with the leading notables of Balochistan and his visit to the province in February 2010, the President expressed desire that mega infrastructure projects be planned and implemented as full package, addressing the needs of the rural population.

Towards this end, President suggested the following broad guidelines that are now being pursued by the Prime Minister secretariat. This is for the first time when the government will seek help of Suparco for collecting data on development projects, as billions of rupees go waste due to delay in timely execution of development projects.

The guidelines given by the President to the federal government with regard to project's implementation:

(i) exploitation and development of sites for mega infrastructure projects should be adequately mapped up front through satellite imageries and implementation benchmarks identified;

(ii) documents for award of contracts should contain relevant information for periodic monitoring of the projects through satellite maps and linking up the payment schedule with the updated satellite image supporting the achievement of benchmark so identified;

(iii) systematic and institutional arrangements for electronic monitoring and tracking of implementation status of mega projects;

(iv)all progress reports and project presentations in future be substantiated with relevant satellite images of the sites;

(v) Planning Commission and relevant Ministries should be linked up electronically for the purpose of real time e-monitoring of the projects as and when needed;

(vi) there should be a monitoring window duly supported by information technology infrastructure housed in the President secretariat as well.

Any project for construction of storage dams, small/medium dams, to have an in-built package for supporting infrastructure for development of the command areas which could, (i) include enhanced agricultural productivity, (ii) lining of water courses where necessary, (iii) transfer of state land ownership to women beneficiaries, (iv) capacity enhancement of local communities with respect to more useful agriculture practices, (v) possible linkage of the deserving communities with Benazir Income Support Program (BISP), (vi) cards for buying agriculture implements and renewable energy solutions etc.(vii) other supporting activities including soft loans/ micro credit etc leading to optimal socio-economic empowerment of the communities could subsequently be added as independent products to BISP cards, where possible.

The sources said, Prime Minister Secretariat has directed all the concerned Ministries and agencies to take necessary actions for implementation of the decisions initiated accordingly and a compliance report be furnished to the Prime Minister.

to be honest this is just BS. waste of resources

 

[ameer219]

Bilateral trade between Pakistan, Japan expanding

Daily Times - Leading News Resource of Pakistan

KARACHI: Pakistan-Japan relations are multidimensional in nature and character and have grown rapidly over the years in different fields and diverse sectors, Sultan Chawla President FPCCI said.

He said, as our major trading partner and top supplier of goods, Japan has over the years played a very significant role in the economic development of the country.

He said an analysis of bilateral trade reveals that the volume of Japan-Pak trade over the years is in favour of Japan, with total export worth $232 million to Japan and imports worth $1.01 billion respectively during 2008-09.

He said Pakistan’s main items of export to Japan are textile yarn & woven fabrics, leather and leather manufactures, sport goods, fish and fish products. The main items of imports from Japan are road vehicles, boilers, machinery and equipment, iron & steel, telecommunication and organic chemicals. He requested the assistance of the consul general for the transfer of technology from Japan in plucking, preservation and packing of fruits and vegetables to meet the required Japanese standards.

He said Pakistan ranks top in the midst of those producers who produce cotton, wheat, fish, sporting goods, crockery, trinkets, surgical apparatus, fruits, dairy products and further other products. He asked the consul general to facilitate and support the export of Pakistani products to Japanese market. Masaharu Sato, Consul General of Japan said his country has imposed sanitary and phytosanitary measures to Pakistani products due to standard measures. He said at present, 40 Japanese companies are operating in Pakistan, among them the leading Japanese companies are Suzuki, Toyota, Honda and Hino and hoped that in future more companies will follow them. Japan has free trade system that’s why there is tough competition in Japan.

He said FPCCI should establish contacts with Japan International Cooperation Agency (JICA) and JETRO for enhancing bilateral trade between the two countries. Moreover, it has been brought to the notice of the Consul General that Japan is holding exhibitions every year but Pakistani businessmen cannot participate in these exhibitions due to business visa problems. It is suggested that the Japanese Foreign Mission in Pakistan should accept the visa recommendation letter of FPCCI for the issuance of entry visa to the bonafide Pakistani businessmen. staff report

 

[ejaz007]

Govt set to impose VAT from July
Updated at: 1145 PST, Monday, April 19, 2010


ISLAMABAD: Government of Pakistan is all set to enforce the Value-added Tax (VAT) regime from July 1 across the country amid widespread concerns among economists and traders.

The traders said the Tax would directly hit the common man.

The FBR is planning to enforce the GST Amended bill as a part of Plan-B under which the existing tax exemptions will be waived off as it seems reluctant to enforce VAT, because its staff is not so far given training on VAT and retailers are also not in a mood to pay VAT, as they have not been educated by the FBR on how to maintain their documents after the VAT is enforced.

The VAT would be received in proportion to the value hike in the products and services; thus, the Tax would be included in the price of a product from its production phase to the phase of supply to the consumers.

Only the consumer would be bound to pay the price of it all.

If 15 percent VAT is enforced, it would entail Rs125 billion in additional revenues in the first year of its promulgation; the Tax would not be applicable to the business that sells less than Rs7.5 million.

Federal Board of Revenue (FBR) said the VAT would not push up the prices of edibles, as General Sales Tax (GST) is already imposed on them and some essential commodities i.e. daal and atta would be exempted from it.

The economic analysts said VAT is also an indirect tax which would affect common man; contrarily, the government should impose tax on the direct income to receive the revenues.

Besides, burden of price hike should be shifted from the poor to tax-evaders by widening the tax net, they urged.

Govt set to impose VAT from July

 

[ejaz007]

Pakistani July-March c/a deficit narrows 68pc
Updated at: 1435 PST, Monday, April 19, 2010


KARACHI: Pakistan's current account deficit in the first nine months of the 2009/10 fiscal year was a provisional $2.702 billion, the central bank said on Monday.

That compared with a deficit of $8.379 billion in the same period last year, the State Bank of Pakistan said.

"Higher export receipts were the key reason behind the narrowing of the current account deficit," said Asif Qureshi, director at Invisor Securities Ltd.

The trade deficit for the July to March period of the 2009/10 fiscal year was $10.92 billion compared with $12.74 billion in the same period last year.

Pakistan recorded a provisional current account deficit of $40 million in March compared with a provisional $50 million in February.

In a quarterly report on the economy released last month, the central bank lowered its forecast for the 2009/10 current account deficit to 3.2-3.8 percent of gross domestic product, from previous estimates of 3.7-4.7 percent.

Analysts, however, said there could be some widening in the current account deficit.

"The current trend may not be sustained for long if oil prices continue to hold above $80, so we may see some deficit widening in coming months," said Qureshi.

An International Monetary Fund (IMF) emergency loan package of $7.6 billion agreed in November 2008 helped avert a balance of payments crisis and shore up reserves.

The IMF increased the loan to $11.3 billion in July and the central bank received a fourth tranche of $1.2 billion on Dec. 28.

The IMF has assured Pakistan it will approve the release of the next tranche at a board meeting on May 3, the country's prime minister's office said last week. The next tranche is of $1.2 billion.

Pakistani July-March c/a deficit narrows 68pc

 

[ameer219]

'Hyderabad Expo Centre to encourage local and foreign investment'


Business Recorder [Pakistan's First Financial Daily]

BRECORDER REPORT
HYDERABAD (April 19 2010): Sindh Mini-ster for Commerce & Industries Rauf Siddiqui has said that the Expo Centre in Hyderabad would prove to be instrumental in encouraging local as well as foreign investment in the district.

He said that now, Hyderabad would be counted as the third city of the country where the facility of expo centre is available, adding that this would open new avenues of income and employment opportunities for the people of Hyderabad and interior Sindh. This he said while speaking at the inaugural session of the three-day Expo 2010 at Expo Centre, Hyderabad the other day as chief guest.

The minister said that the unique thing of this extension is that 280 plots have been reserved only for women investors where full protection would be provided to them. Women comprise half of our population and without their participation in the process of development, the desired goals could not be achieved.

Rauf Siddiqui warned the land grabbers to refrain from their activities of land grabbing in the Site areas of Hyderabad or they would be dealt with iron hands.

He said that the government is taking concrete steps for the expansion of industrialisation as such 300 acres of land has been recently added to Site area of Hyderabad. He lauded the services of ex-Zila Nazim Hyderabad Kanwar Naveed Jamil for the development of the city and establishment of Expo Centre with the resources of district government.

The ministry has also taken steps to resolve the problems at Nooriabad Industrial area, which includes provision of water supply, energy and communication facilities to the investors, he added.

Speaking on the occasion, Administrator Hyderabad Aftab Ahmed Khatri said that Hyderabad has remained as a hub of commercial activities but unfortunately, it was ignored and victimised in the past. He pointed out that having agricultural, livestock, handicrafts and industrial background; there exists good potential of investment in Hyderabad. Addressing the ceremony, the MNA Salahuddin said that Hyderabad possesses technical and skilled manpower and always has contributed significant role in the GDP of the country. He pointed that many of the manufactured items of Hyderabad especially bangles and leather products are popular in the world.

President of Hyderabad Chamber of Commerce & Industry Azizuddin Arain said that this expo centre would not only encourage investment in Hyderabad but also open new markets of business in interior Sindh. He hoped that the move would also increase the demand of raw material and introduction of unique products of Sindh in the world.

MPA Akram Adil Shaikh and Mohammad Sharif MQM Zonal In-charge Hyderabad also addressed the ceremony. Earlier, Sindh Minister for Commerce & Industries Rauf Siddiqui visited the on-going development works being carried out at Site area Hyderabad.

Talking on the occasion, Rauf Siddiqui said that tenders at the cost of about Rs 1.5 billion have been floated for the infrastructure development at Hyderabad Site Phase-II, comprising on 300 acres of land. During the inspection of water filter plant at Site, he said that this scheme, being implemented at the cost of Rs 475 million, has the capacity of 5 MGD water supply to the Site area.

Copyright Business Recorder, 2010

 

[ameer219]

KSE 100 index makes small gain as regional markets tumble

KARACHI: Range bound activities dominated proceedings at Karachi Stock Market on Monday, the first trading day of the week, with index closing at clipped gains.

Institutional support in Pakistan Oil & Gas sector led to a positive close. Analysts in their comments said that the benchmark KSE-100 index opened on a positive note and after lackluster trade during most part of the session finally closed in the green zone with limited gains.

The Karachi Stock Exchange (KSE)-100 share index gained 10.67 pts or 0.10 percent to close at 10669.88 points compared to previous session’s 10659.21 points. The KSE-30 share index closed at 10841.46 points compared to 10876.61 with a loss of 35.15 points or 0.32. percent. The KMI-30 index closed at 16055.88 points with a loss 23.45 points or 0.15 percent. The KSE-100 all share index closed at 7514.06 points gaining 3.30 points or 0.04 percent.

The market turnover went down by 19.16 percent as number of shares traded came down to 166.92 million as compared to previous session’s 206.49 million. The overall market capitalisation was up by 0.23 percent at Rs. 3.024 trillion compared to Rs 3.017 trillion of previous session. Out of total 412 companies, 172 closed in the positive zone, 214 in negative while 26 remained unchanged.

Farhan Seth, analyst at Topline Sec., said activity at local bourse remained under pressure as regional markets tumbled with crude oil trading below $81/bbl. Furthermore, small cap scrips continued to dominate the volumes. However, activity in heavy weight OGDC supported the index at lower levels to close in green.

Ahsan Mehanti, senior analyst at Shahzad Chamdia Sec., said mixed activity was witnessed as global capital markets tumbled on Goldman Sachs fraud case.

Fall in international oil prices to $81 and limited foreign interest in blue chip scrips played a role in negative sentiment at KSE.

The KSE 100 Index opened in green zone with a gain of 15.12 points and at the end of the day closed at 10669.88 with a gain of 10.67 points. KSE 30 index closed at 10841.46 with a loss of 35.15 points. KMI-30 index closed at 16055.88 with a loss of 23.45 points. All shares index closed at 7514.06 with a gain of 3.30 points. staff report

Daily Times - Leading News Resource of Pakistan

 

[Creder]

you guys this is one of the best threads here on PDF, i cant thank you guys enough for the contribution that you guys are making

 

[ejaz007]

LPG price cut by Rs 3 per kg

KARACHI: Marketing companies have slashed price of liquefied petroleum gas (LPG) by Rs 3 to Rs 67-68 per kilogramme in Karachi and Lahore due to piled up unsold stocks, touching 10,000 metric tonnes.

Chairman of FPCCI Standing Committee on LPG and All Pakistan LGP Distributor Association, Abdul Hadi Khan said price of 11.8 kg cylinder has been cut by Rs 30-35 to Rs 675-685 while 45.4 kg cylinder would be down by Rs 115-120 to Rs 2,585 to Rs 2,600.

He said retail price of LPG in Peshawar has bee reduced to Rs 70-72 per kg while in Swat and northern areas LPG would be sold at Rs 76-77 per kg.

He said 11.8 kg cylinder was sold at Rs 695-700, while 45.4 kg cylinder was available at Rs 2,685-2,700.

In Swat and northern areas, 11.8 kg cylinder is being sold at Rs 730 and 45.4 kg cylinder at Rs 2,750-2,800. He said LPG sale has declined by 35 percent in the last eight month due to high local price. Despite our repeated requests to bring down price of locally produced LPG, producers and the government failed to lower prices in the country, he added.

He said that LPG import has been stopped for the last two months due to high international prices. The locally produced LPG should be sold at Rs 35,000 MT as its production cost is only Rs 9,000-12,000 MT, he added.

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

Hot commissioning of TSML to be completed by July
By Moonis Ahmed

KARACHI: The first phase of Tuwairqi Steel Mills Limited (TSML) will be completed by July 2010, director projects of the mill, Zaigham Adil Rizvi said Monday.

“The first phase has been completed 80 percent and cold commissioning of its distributed control system (DCS) have also been done last month, while the hot commissioning will be done in July”, he said. He said the first phase of the project was to be completed by March this year, but it was delayed due to financial meltdown and bad law and order situation in the country as foreign investment was also stopped.

“In the first phase of the project 100 percent equity has been put by TSML, however in second phase we need to have foreign investment equal to investment of first phase,” Zaigham said.

Because of financial crunch across the world some of the banks included in (9 banks consortium) backed out from financing and financing remained shot around 40 percent, he said.

He said there was a misconception about the completion of first phase in December 2009, as this was mechanical completion of the project that included physical construction, piping, electrical work and cold commissioning (equipment testing) and this has been achieved.

Regarding the production of Direct Reduced Iron (DRI) worldwide, he said about 62 million tonnes of DRI in the form of pellet, lump and HBI was produced in 2009. The 2009 trends show that DRI usage is gaining popularity despite reduced world steel production and consumption.

He said there was a consistent growth in the production of DRI over the years owing to environment-friendly production process and consistent quality of the product. The plant, currently stand with 80 percent completion, spreads over an area of 220 acres at Bin Qasim Karachi and employs the world’s most advanced D I technology of the MIDREX process owned by Kobe Steel of Japan. The first phase of the DRI project would produce 1.28 million tonnes of high-quality DRI and has been targeted for completion in July 2010. “It is a matter of great pride that Pakistan will be producing one of the most preferred raw materials for quality DRI steel making.”

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

ST should be declared zero before VAT imposition

KARACHI: Value Added Tax would not be easy to impose and the government would be having trouble to recover it unless and until it declares the sales tax zero, said patron In-Chief of Korangi Association of Trade and Industry (KATI), S M Muneer.

He informed that the new advisor to the Prime Minister on Finance, Dr Hafeez Sheikh has already signed the accord with IMF to impose value added tax (VAT) and it would become effective from July 1 2010.

He warned that without doing necessary exercise, the government would not be able to collect VAT and would also create unrest among the business community, and the worst of all, the entire nation would be hurt. He suggested that the government should initiate negotiations with the FPCCI on daily basis and implement all the necessary measures advised by business leaders. He further called upon the government and the opposition to sit together and make efforts to strengthening the national economy by pushing aside their differences.

Regarding wheat surplus he said, if the government does not reduce the prices of flour instead of exporting wheat in order to provide relief to the masses, export of surplus wheat could be another disaster, as it happened in the past.

He said in order to avoid such a humiliation, the government should keep enough quantity as buffer stocks and lower the prices of flour to pass on the benefit of bumper production of wheat to the masses that have already suffered a lot. staff report

Daily Times - Leading News Resource of Pakistan