Pakistan Economy - News & Updates - Archive

[Neo]

Friday, May 19, 2006

KARACHI: The total annual trade volume between Pakistan and South Korea topped almost $1 billion in year 2005 (January- December) for the first time in trading between the two countries.

This was stated by South Korean Consul-General Sukchul Chang while speaking at vendors’ convention of Dewan Farooque Motors Ltd here on Thursday.

He said South Korea invested more than $21 million in Pakistan’s industrial, construction and transport sectors, including joint ventures with Pakistani entrepreneurs.

Mr Chang praised the efforts of the Pakistan government to encourage foreign investment. He felt that in order to promote more economic relations between the two countries steps be taken to attract more South Korean investors by enhancing infrastructure and upgrading investment and industrial sites in Pakistan.

Pakistan is a country with lot of potential in business for foreign companies. ‘‘I believe there is a lot of scope for South Korean businessmen and I am confident our mutually beneficial cooperation will expand with more exchanges and both countries will establish new avenues to further broaden cooperation.”

He described visit of President Pervez Musharraf to South Korea in November 2003 as a landmark in the history of bilateral relations, following which economic and trade ties between the two countries are accelerating in all fields.

Furthermore, official visit of Prime Minister Shaukat Aziz to Seoul last year also served to enhance in exploring new avenues for bilateral collaboration in various fields, Mr Chang added.

 

[Neo]

Friday, May 19, 2006

KARACHI: Minister for Information Technology, Awais Ahmad Khan Leghari on Thursday said the government is aggressively working to provide 1.5 million internet broadband connections under Universal Service Fund (USF) within the next two years.

The government is also using the USF to take basic telephony and internet connectivity to the far-flung areas of the country, he said this at signing of Memorandum of Understanding (MoU) ceremony among the ministry of Information Technology, Intel, NBP and Bearing Point.

Under the MoU, a multi-billion programme has been launched to provide affordable, high-quality Personal Computers (PCs) to all government employees in the country. He emphasized the need for fastest internet connectivity and expressed his dismay over a slow speed of the service and asked the regulators to keep a vigil on the Internet Service Providers (ISPs) to ensure a smooth and continued service.

Under the terms of the MoU, NBP employees and government employees across Pakistan will have access to financing options to purchase desktop PCs and notebooks. The programme also aims to help bridge the digital divide and build the Information and Communication Technology (ICT) enabled knowledge society in Pakistan.

Mr Leghari said the ministry would follow up the Pak-PC programme with another massive programme whereby Urdu desktop and applications would be developed to enable the 85 per cent Urdu-literate population of the country to benefit from the Internet facility.

He said one of the main initiatives taken by the ministry in recent weeks was the setting up of career placement offices at 25 reputed universities of the country for the purpose of picking up promising IT graduates for their further placement in the IT sector.

 

[Neo]

RAWALPINDI (updated on: May 19, 2006, 19:35 PST): The United States has a long-term commitment to participation in Pakistan's socio-economic development and will assist the country in developing its human resource for its continued progress.

This was stated by Administrator for USAID Ambassador Randall Tobias during a call on President General Pervez Musharraf here on Friday.

Tobias, who is Director US Foreign Assistance, said America greatly values its wide-ranging relationship with Pakistan and will extend co-operation for improvement in a host of areas including health, education at both basic and higher levels.

He informed the President about the award of scholarship to Pakistani students and expressed the hope that their expertise would be extremely beneficial for the country in the years ahead.

President Musharraf thanked the US official for assisting Pakistan through various programmes under USAID. He informed the visiting official about Pakistan's efforts aimed at improving the quality of higher education as well as equipping the schools and colleges with better facilities.

"We are resolved to equip the younger generation with modern skills as part of our focus on human resource development, which, we believe, lies at the core of sustained development," he said.

Speaking about the recently established National Vocational and Technical Education Commission, the President said it will produce skilled workforce, necessary for the country's rapid industrial development.

The NAVTECH, he said, would set up vocational institutes all over the country to train the local talent in consonance with the economic potential of their areas.

On the objectives of the higher education, he said it is engaged in a process of establishing high quality and state-of-the-art engineering and science and technology universities with the help of industrialised nations to synergies education with demands of fast-paced advancement in the era of knowledge-based economies.

In this respect, the President looked forward to the US co-operation and particularly pointed out that Pakistan students could greatly benefit from the US expertise in the field of water management and technical assistance for water dams.

Advisor to Prime Minister on Finance, Dr Salman Shah and US Ambassador to Pakistan Ryan C Crocker were also present.

 

[Owais]

Purchase of new cars: CBR to again propose 6 percent withholding tax

ISLAMABAD (May 20 2006): The Central Board of Revenue (CBR) will again propose to the government, in the upcoming budget, to levy six percent withholding tax on the purchase of new cars of 800cc and above. It is learnt that the proposal is likely to be submitted to the Federal Cabinet, because it would generate over Rs 1.2 billion revenue in 2006-07.

Last year, the proposal came under discussion in the Cabinet meeting for approval of taxation measures. Most of the ministers opposed it, taking the plea that they were already facing criticism from the public and media on high prices of cars.

According to CBR Chairman directive to Income Tax Department to examine six percent withholding tax on the purchase of cars, it was decided to bring the levy at par on imported cars.

The CBR opines that section 114 of Income Tax Ordinance, 2001, requires every person, who owns a motor vehicle, to file income tax return. In order to expand the tax base and improve upon the compliance of the Income Tax Ordinance, an adjustable withholding tax at the rate of 6 percent may be levied on purchase of new cars, which shall be collected by the manufacturers.

This will bring local purchases at par with imports, which are already subject to 6 percent withholding tax, the Board added.

 

[Owais]

Banks need more time to study SECP's CFS Mk-II plan
RECORDER REPORT KARACHI (May 20 2006): Banks have asked for more time to reflect on the eligibility criteria laid down by the Securities and Exchange Commission of Pakistan for participating in direct lending to investors on bourses and also to work out the modalities as the lending risk will be dependent on stock exchanges' risk management system.

In a meeting called by the State Bank of Pakistan on Friday, to elicit views on the Continuous Funding-Phase II proposal, around two dozen bank chiefs told the SBP Governor, Dr Shamshad Akhtar, that the scheme received by them from SECP is slightly different from that outlined in earlier discussions held with them on eligibility for operating as authorised financiers to stock exchanges. As such they required more time to reflect on it. However, it was felt that the minimum commitment of Rs 2 billion sought from a participating bank was too high for most of them.

Secondly, it was not clear to them who is the true obligor since neither the financier nor the finance will know the identity of the other party until default takes place. Moreover, banks also need to ponder whether it is prudent to outsource the risk management function to KSE.

SBP Governor Akhtar was more concerned about the regulating framework relating to exposure of the banks to the capital market.

SBP wants to assess the existing exposure of the banks to the capital market and would like to consolidate the running finance provided to brokers, CFS funding and revise REPO transactions. At present, banks can lend up to 30 percent of their equity towards share financing.

"I wanted to meet the bankers and directly elicit their views and ascertain the reservations, if any, directly; and ascertain how they felt about the exposure to the capital market," the Governor said.

According to a participant, while absorbing different viewpoints, the Governor also amplified her thought process on the subject.

In the end, a committee within Pakistan Banks Association was given the task to study the revised draft of SECP on CFS-Mk II, and return to SBP for discussion on May 30, 2006.

 

[Owais]

Quota for USC: PSMA turns down government demand
ISLAMABAD (May 20 2006): The Pakistan Sugar Mills Association (PSMA) has finally turned down the government demand to provide 10 percent quota of sugar produced during 2005-06 for disposal through the Utility Store Corporation (USC).

In its letter addressed to Adviser to the Prime Minister on Finance and Revenue Dr Salman Shah, the PSMA said it had long consultations with its members to consider the proposal and added that during the meetings at zonal and centre level, the members expressed reservations and did not agree on meeting the demand.

According to the association, the dissident members were of the view that high prices of sugarcane had raised sugar prices to such an extent ie Rs 40 per kg.

The PSMA reminded that low prices in the open market will put the industry at losing end and they will not be able to recover losses that it would incur on subsidising the sale for disposal at USC, especially when open market prices were declining.

It claimed that the mills suffered losses due to low utilisation of capacity despite high sugar prices. It said that the mills utilisation remained below 50 percent in most of the cases, whereas in NWFP the major chunk of the sugarcane worth producing 200,000 tonnes of sugar was diverted to the tax-free production and export of gur to Afghanistan.

The association also wanted the government's intervention to stop what it called in the letter media 'trial of the industry'. It said: "blaming the sugar industry and opening up of the cases against its members by Monopoly Control Authority (MCA) and the Public Accounts Committee (PAC) action appears a vicious campaign launched to destroy it."

However, it conditionally offered 5 percent of the mills stock as on April 30, 2006 for USC at Rs 31 per kg (exclusive of zero rate sale tax).

It demanded that the offer is subject to TCP market intervention not below Rs 39 per kg (inclusive sale tax) ex-Karachi. According to other conditions the government should ensure that imported sugar was not sold below Rs 39 per kg (sales tax and all related cost inclusive) and implementation should be through a tripartite agreement among each sugar mill, the government and the PSMA.

The government had demanded 10 percent quota from the mills of their total production for USC and PSMA had agreed in principle to the demand in March. Now backing out after one and half months showed that PSMA played a trick with the government to subside pressure it was facing for selling sugar at irrationally higher rates.

 

[Owais]

Human resource development: President assured of US assistance RAWALPINDI (May 20 2006): The United States has a long-term commitment to participation in Pakistan's socio-economic development and will assist the country in developing its human resource for continued progress.

This was stated by Administrator for USAID, Ambassador Randall Tobias during a meeting with President General Pervez Musharraf here on Friday. Tobias, who is Director US Foreign Assistance, said America greatly values its wide-ranging relationship with Pakistan and will extend co-operation for improvement in a host of areas including health, education at both basic and higher levels.

He informed the President about the award of scholarships to Pakistani students and expressed the hope that their expertise would be extremely beneficial for the country in the years ahead.

President Musharraf thanked the US official for assisting Pakistan through various programmes under USAID.

He informed the visiting official about Pakistan's efforts aimed at improving the quality of higher education as well as equipping the schools and colleges with better facilities.

"We are resolved to equip the younger generation with modern skills as part of our focus on human resource development, which, we believe, lies at the core of sustained development," President said.

Speaking about the recently established National Vocational and Technical Education Commission, the President said it would produce skilled workforce, necessary for the country's rapid industrial development.

The NAVTECH, he said, would set up vocational institutes all over the country to train the local talent in consonance with the economic potential of their areas.

On the objectives of the higher education, he said it is engaged in a process of establishing high quality engineering, science and technology universities with the help of industrialised nations to synergise education with demands of fast-paced advancement in the era of knowledge-based economies.

In this respect, the President looked forward to the US co-operation and particularly pointed out that Pakistani students could greatly benefit from the US expertise in the field of water management and technical assistance for water dams. Advisor to Prime Minister on Finance, Dr Salman Shah and US Ambassador to Pakistan Ryan C Crocker were also present.

 

[Owais]

Prime Minister arrives in Egypt

SHARM-UL-SHEIHK (May 20 2006): Prime Minister Shaukat Aziz arrived here on Friday to represent Pakistan at the World Economic Forum on the Middle East. The prime Minister would also hold meetings with Egyptian President Muhammad Hosni Mubarak, Prime Minister Ahmed Mahmoud Nazif and other world leaders attending the summit.

 

[Owais]

SECP releases draft to remove cap on CFS
RECORDER REPORT KARACHI (May 20 2006): The Securities and Exchange Commission of Pakistan (SECP) has planned to introduce new funding system called CFS Mk11 which would eradicate the risk factor in the local bourses and improve the much needed liquidity, removing the cap of Rs 25 billion imposed in August last.

The SECP has circulated a draft of the new product and wants members of the stock exchange to send their opinion and views over the new product in writing latest by May 25.

"Having studied the existing funding system, SECP is of the firm view that the proposed new product should be implemented at the earliest. It would remove a large risk factor from the market and will promote healthy growth of stock market in a transparent and orderly manner", the proposal of the stock market regulator said.

Based on the indisputable advantages which CFS Mk II will afford to the market, following is being proposed: Implement CFS Mk II as proposed; current CFS be scrapped, Ban Kerb Badla market and strict penalties be imposed on violators; and Immediately enhance the CFS cap substantially and eventually remove the CFS cap of Rs25.0billion.

Consider banning share Repo or FAS where these products are being used to provide short-term liquidity to a Broker. Alternatively banks financing brokers through other modes of financing to provide details of Bank finance provided namely: amount of finance, shares financed, average rate of interest charged, value of margin held as collateral so that complete market information on funding is disclosed on a daily basis.

The SECP added that there are number of advantages and explained here is under: the CFS market would remain open during market hours, enabling investing public to lock in the financing on taking a position and to liquidate same if he has changed his mind with ease and simplicity.

The financier does not need to develop its own computer system or back office procedures to manage the financing. A trained automated trading system operator is all that is required.

Small brokers gain access to funding lines, currently they are dependent on big brokers. All CFS transactions shall be carried out on a matching-trade basis on exchange's automated trading system to ensure transparency, wide availability and equitable distribution of available finances.

Competition between Financiers to achieve full disbursement of commitments will exert downward pressure on financing cost, thus, providing leverage at affordable prices.

Reduced financier risk in CFS MkII plus ease of doing business, when compared to alternative products currently in vogue will cause, quantum of funding available to CFS market to increase substantially. Financier's risk upon broker default will be mitigated by new Financier Protection Fund.

The 90-day commitment of financing will eliminate risk of arbitrary and manipulative financial withdrawal. Number of shares eligible for CFS finance can be increased to cater to all types of investors and financiers. Pricing mechanism will price risk inherent in the scrip itself.

The market systemic risk due to netting across markets will be removed, as Ready and CFS markets will be separated and no netting will be allowed.

It would provide a level playing field to all market participants. A steady and certain source of liquidity at competitive rates will be available to market players which will be pro market and shall cause the market activity to increase. The small investor and small broker that need leverage will be greatly benefited. Rate of interest per share and quantum of funding available per share will be visible on exchange's automated trading system during market hours enabling them to cover their positions at any time during the day in a transparent manner.

Enable SECP to eventually remove Rs25 billion cap placed on the CFS trade, as market risks associated with current CFS will have been adequately covered or be removed.

The regulator also earmarked some of the disadvantages of the new ruling: There is a possibility of the market shouldering another blow of March 2005 proportions is a potential hazard.

Profit-driven and with several alternatives, should FIs incur a loss they might lose interest and refuse to fund the market after 90 days. Counter party risk is assumed by the Clearing Houses/Exchanges as all trades are guaranteed by the Exchange. It negates the principles of T+3 rolling settlement system as recommended by IOSCO. Ready open position can be kept open indefinitely. Settlement risk consequently increases. It fuels excessive speculation as liquidity is readily available due diligence of the eventual finance is not carried out by the Financier - provides a platform for leverage trading by weak holders. An active CFS MkII market may impede growth of a derivative market with a single stock future, index futures, options warrants etc.

 

[Owais]

Minfal refuses to authorise tractor makers to fix price

ISLAMABAD (May 20 2006): The Ministry of Food, Agriculture and Livestock (Minfal) has refused to authorise manufacturers to fix tractors price without prior approval of the government.

On May 12, Minfal minister held a meeting with the representatives of Millat Tractors Limited, Al-Ghazi Tractors Limited and Universal Tractors Limited on the issue of prices but did not invite any official of the industries ministry, which wanted to deregulate tractor prices.

Minfal ministry officials held an internal meeting a day earlier to deliberate upon the proposal of industries ministry and consider the viewpoint of manufacturers.

After a threadbare discussion, Minfal turned down the proposal regarding deregulation of tractor prices, saying that this would further escalate already high prices.

When contacted for comments, Minfal secretary Ismail Qureshi told this scribe that the ministry did not support deregulation of tractor prices, as this mechanism would increase the prices substantially.

Another official confided that the industries ministry had proposed that SRO No 839(1) 98 should be amended, deleting the requirement for the companies to seek government's concurrence regarding price fixation.

According to the SRO, the federal government has also exempted input tax on tractors subject to the condition that the tractors should be sold at zero sales tax at the price agreed with the federal government.

"The government's concurrence is necessary to ensure availability of tractors at reasonable prices and this problem is being addressed through import of tractors at zero tariff. In case of any subsequent demand-supply gap, the same option can be exercised in future," the industries ministry recommended.

The sources quoted Abdul Karim Chaudhry, Director General Federal Water Management Cell (FWMC) as saying that the Minfal has strongly recommended to the Prime Minister that the companies should not be given free-hand to increase tractor prices, which are already too high.

The sources added that Universal Tractors limited, a Karachi-based company, was making efforts to get registration in the name of GM Tractors, with Zarai Tarqiati Bank Limited (ZTBL), but the move was being opposed at certain fora.

They said that the company was also involved in over-charging for its model U-530, with only changed name, adding that ZTBL was also considering de-listing the companies from its board, which are involved in such practices.

The company had seized tractors of nearly 55 farmers despite receiving full payments from them, however, the issue was resolved after the involvement of ZTBL.

The sources further said that the Chief Executive of Universal Tractors is holding a meeting with the ZTBL President on Saturday to discuss the thorny issues.

 

[Owais]

Inflation shows declining trend: SBP
RECORDER REPORT

KARACHI (May 20 2006): The inflationary pressure still exists in the economy, although a declining trend has been noted. According to State Bank of Pakistan (SBP) monthly publication 'Inflation Monitor' for April, CPI inflation on monthly basis (ie April 6 over March 6) was one percent as compared to monthly inflation of 0.3 and 0.2 percent during February and March 2006, respectively.

However, annualised inflation measured as year-on-year percent change in CPI declined sharply to 6.2 percent during April, 2006 - the lowest level since May 2004. Such a decline in annualised inflation amid recent increase in oil prices and high inflation in prices of commodities like sugar, milk, and cement may primarily be attributed to base effect as inflation during April 2005 was the highest in the past five years.

A similar trend has been witnessed in other price indices also, viz. wholesale price index (WPI) and sensitive price indicator (SPI): the WPI inflation declined to 8.1 percent, year-on-year, during the month, after having peaked off at 11.9 percent in September 2005, and inflation in sensitive price indicator was 6.8 percent in April 2006, which was significantly lower than 13.4 percent inflation recorded during the corresponding month of last year.

The food group was the major contributor to the recent decline in overall inflation, which showed sharp deceleration both in CPI and WPI during April 2006 due to the strong base of last year as well as YoY decline in the prices of a number of important food items.

Inflation in non-food components of both CPI and WPI, on the other hand, showed firmness due to recent increase in fuel prices and a check on earlier decelerating house rent index inflation on the back of high prices of cement and other building material, according to the 'Inflation Monitor'.

Core inflation, measured both by excluding food and energy components from CPI basket and by trimming 20 percent of CPI items showing extreme changes, also continued to decline during the month of April, 2006.

Wages of five construction workers (mason, labourer, plumber, and electrician) increased by 15.1 percent in April 2006, slightly down from 15.2 percent of last month. While inflation in wages of skilled workers remained stable at the previous month's level, the same of unskilled workers declined during April, 2006, the 'Inflation Monitor' added.

 

[Owais]

Claiming tax relief: 'certificate of Residence' to be mandatory for foreigners
RECORDER REPORT

ISLAMABAD (May 20 2006): The government will make it mandatory for foreign nationals working in Pakistan to submit the 'Certificate of Residence' for claiming tax relief in their respective countries under the agreement on avoidance of double taxation and fiscal evasion.

Accordingly, amendment has been proposed in the Income Tax Rules 2002, after obtaining viewpoint of all stakeholders. The revised rules would be announced in the upcoming budget.

Sources told Business Recorder that foreign nationals working in Pakistan, who earn taxable income and pay taxes, would be entitled to tax credit in their countries under the agreement on avoidance of double taxation.

Similarly, overseas Pakistanis, paying taxes in other countries, could also claim tax credit/fiscal relief in Pakistan.

Earlier, foreign nationals were claiming exemption in their country, but there was no provision regarding 'Certificate of Residence' in the law.

Foreign nationals have to submit the supportive documents of proof of income earned in Pakistan, tax paid and proof of residence in other country to the board. The Board would issue the 'Certificate of Residence' to the non-resident person who could claim exemption of the same amount in his country.

In case the CBR decides not to issue a certificate for 'tax sparing credit', it will communicate the decision, along with the reasons of rejection to the applicant, within 60 days of the submission of application at the available address in Pakistan.

 

[Owais]

Bamakhrama appointed PTCL president

KARACHI (May 20 2006): The Board of Directors of Pakistan Telecommunication Company Limited (PTCL) has appointed Mohamed Abdulla Bamakhrama, nominee of Etisalat International Pakistan, as the new President & Chief Executive Officer of the company, following the resignation of Junaid Iqbal Khan from the post.

Sources told Business Recorder late on Friday night after meeting of the PTCL's BoD.

The board of directors also approved nominations of Abdulrahim Al Nooryani as Chairman of Pakistan Telecom Mobile Limited (PTML) Board of Directors, commonly known as Ufone, and Fadhil Erhama Al Ansari as Chairman of Paknet Board of Directors.

The appointment of Salim Ali Al Akbary as PTCL's Senior Executive Vice President (SEVP) of Human Resources and Administration in view of the resignation of Shahzad Sadan was also approved.

The meeting of the board was held under the chairmanship of the Secretary, Ministry of Information Technology & Telecom, Farrakh Qayyum.

The board approved the rollout of converged Voice, Broadband Internet and Interactive Internet Protocol Television (IPTV) across the country. The company would be the first operator to provide such converged services on a mass scale. All these services would be available to customers on their existing telephone lines under a single bill.

To augment the domestic network, the expansion of the Dense Wavelength Division Multiplexing (DWDM) backbone capacity was also approved. This expansion will cater to the needs of high bandwidth services for the entire mobile, fixed-line and Information Technology sectors in the country.

In addition, the PTCL would also accelerate the process of migrating to IT-based automated processes within the company to improve its response time to customers.

The management also approved the 'Mobile Number Portability' (MNP) project which would benefit the entire telecom sector.

In another major move, the company removed the distance and time slabs from its tariffs and shifted to a flat, consumer-friendly one rate tariff with calls at any time within the PTCL and fixed to mobile networks, the sources said, adding that these proposed tariffs are subject to Pakistan Telecommunication Authority's (PTA) approval.

The board also approved significant tariff reductions for services related to Internet, data and corporate sector connectivity. These services include bandwidth and international and domestic leased lines. This would benefit sectors such as banking, Internet Service Providers (ISPs), telecom and data operators, multinational corporations and Call Centers.

The key services such as Internet Protocol (IP) and International Private Leased Circuit (IPLC) connectivity at E-l was lowered from $2000 to $1600 per month and from $3500 to $2400 respectively. These reductions would be applicable from 1st June, the source said.

Junaid Iqbal had earlier offered his resignation to the new Board of Directors on April 12, when it met for the first time after taking over the charge of the company, but the board then had asked him to continue till the new management got suitable replacement.

Minister for Information Technology, Awais Ahmad Khan Leghari, has lauded the services of the out-going PTCL president for playing professional and constructive role in making the privatisation of PTCL a success.

 

[Owais]

'Black cabs' again on ECC agenda'
RECORDER REPORT ISLAMABAD (May 20 2006): The reason for dropping and again including 'black cabs' import in the agenda of Economic Co-ordination Committee (ECC) of the Cabinet meeting to be held on Monday is that the investor had raised objections on some of the conditionalities imposed by the Ministry of Industries.

The summary of Industries and Production Ministry had been made the part of the ECC agenda issued on May 12 by the Cabinet Division and received in the ministries on Monday, May 15, but two days later the proposal was dropped in the light of telephonic directives from Prime Minister's secretariat.

However, one of the seniors officials in the federal government told Business Recorder that the summary was being revised by a special subcommittee, after which it would be included in the agenda.

Meanwhile, it is leant that the Cabinet Division has revised the agenda for the third time to make the proposal of 'black cabs' import part of the final agenda.

"The overhauled summary of black cabs is very much on the revised agenda of ECC," said an official. It may be mentioned here that at a joint meeting on 'investment initiatives', President Pervez Musharraf and Prime Minister Shaukat Aziz had decided to allow import of black cabs on the analogy of tractors, subject to payment of customs duty at the same rates for CKD and CBU units 'for taxi operation only'.

A subcommittee, constituted by the Prime Minister under the chairmanship of Secretary Industries Kamran Rasool, has also approved the criteria for the intending companies.

 

[Owais]

10,000 tons duty-free tea to be imported from Bangladesh

ISLAMABAD (May 20 2006): Pakistan will import duty-free tea from Bangladesh under Tariff Rate Quota (TRQ), it is learnt. An official of Minfal told Business Recorder on Friday that Pakistan would import 10,000 tons duty-free tea from Bangladesh under the TRQ.

The ministry has no reservations over duty-free import of tea from Bangladesh, rather it would help bring down its price, the official added. A 15-member Bangladeshi delegation, which is currently visiting Pakistan, would sign the agreement with Pakistan to implement the offer, he said.