Pakistan Economy - News & Updates - Archive

[Neo]

'Makro committed to build world class centres in all major cities'​

KARACHI (October 25 2008): Makro is committed to build world class wholesale centres in all major cities of Pakistan, Makro Pakistan Managing Director Merek Minkiewicz said at a seminar on 'Makro Modern Retailing', organised by Management Association of Pakistan here on Thursday.

He said that Makro, with the help and share of Habib, already has three centres operational in Karachi and one in Lahore, and its fifth centre, at Model Town, Lahore, is scheduled to open by the end of this year. Each Makro centre is air-conditioned, has a sale area of 12,000 sq ft, and parking space for 400 vehicles, and is open seven days a week from 8:00 am to 12:00 midnight, he said.

Other speakers included Imran Ejaz, Director, Season Food, Sadia Naveed, MD English Biscuit Manufacturers, and Abrar Hasan, CEO, National Foods. Makro, a chain of wholesale centres operating in many countries around Asia and South America, dealing in food and non-food consumer goods, has pioneered the modern, organised and qualified retails in Pakistan.

 

[pkpatriotic]

Banks refuse to accept bills with 40pc reduction
By Muhammad Anis
Sunday, October 26, 2008

ISLAMABAD: The consumers of Rawalpindi and Islamabad could not avail the facility to deposit 60 per cent of their electricity bills, as they were told by the scheduled banks to make the full payment.

Just 18 hours after the announcement by the Minister for Water and Power Raja Parvaiz Ashraf that the people should pay 60 per cent bills, the consumers were made to suffer by the offices of the Islamabad Electric Supply Company (Iesco) and various branches of banks in the twin cities. “We will receive full payment as we have not yet recieved any notification,” a bank officer in Pandora branch, Rawalpindi, said. Other bank officials said almost the same.

They said they could not make calculations at their own unless they recieved anything in writing. “We have not been told in writing or verbally to make calculations,” a bank officer of a bank in the Commercial Market said.

The Iesco office located on the Murree Road near the Chandani Chowk also refused to facilitate the consumers, returning hundreds of them and asking them to come again on Monday. The concerned officials present on duty said they would start making correction of bills from Monday. The consumers were also told the due date of bills would also be extended and as such there would be no surcharge.

It may be pointed out here that October 25 was the last date for the payment of electricity bills, which made the consumers to worry that they would have to pay 10 per cent surcharge if the bills were not corrected immediately.

It has also been learnt that some branches of the Pakistan Post Office facilitated consumers and received electricity bills after making corrections on the spot.

An official of the Iesco present at the head office in Islamabad said on condition of anonymity that written directives would reach the concerned banks by Saturday evening or on Monday morning.

 

[pkpatriotic]

Govt mulls power tariff cut
By Jawwad Rizvi
Sunday, October 26, 2008

LAHORE: The government is considering a reduction in electricity tariff. Proposals for restoring the previous slab system and partially withdrawing the general sales tax (GST) from bills are also under consideration.

A committee and a sub-committee, which were constituted to look into the increase in power tariff and overbilling, discussed different prospects of saving the public from the hike and providing relief to them. Some members of the committees told The News the proposal of a cut in tariff by 0.22 paisa per unit had been discussed and endorsed by the private sector stakeholders.

Members belonging to the private sector proposed to the government to decrease the power tariff as much as possible. The government representatives did not reject the proposal and discussed how much tariff could be reduced in the current situation.

The meetings also discussed restoring the previous slab system. According to the new system, when consumers enter a new slab, they have to pay the electricity bill according to the last slab rate which they consume.

In the previous system, they had to pay only the price of units consumed in every slab. The restoration of the previous slab system may provide substantial relief to consumers. Its restoration was supported by almost every member of the sub-committee.

A proposal of withdrawing the GST from power bills was also discussed. The members of the committee were of the view that a large number of power consumers were not taxable, so the GST should be removed.

However, FBR chairman, while talking to industrialists in Lahore on Friday, had ruled out any possibility of withdrawing the GST.

Meanwhile, sources said President Zardari had taken a serious notice of public protests against the government due to miscalculations in the power tariff hike formula.

 

[pkpatriotic]

Govt mulls power tariff cut
By Jawwad Rizvi
Sunday, October 26, 2008

LAHORE: The government is considering a reduction in electricity tariff. Proposals for restoring the previous slab system and partially withdrawing the general sales tax (GST) from bills are also under consideration.

A committee and a sub-committee, which were constituted to look into the increase in power tariff and overbilling, discussed different prospects of saving the public from the hike and providing relief to them. Some members of the committees told The News the proposal of a cut in tariff by 0.22 paisa per unit had been discussed and endorsed by the private sector stakeholders.

Members belonging to the private sector proposed to the government to decrease the power tariff as much as possible. The government representatives did not reject the proposal and discussed how much tariff could be reduced in the current situation.

The meetings also discussed restoring the previous slab system. According to the new system, when consumers enter a new slab, they have to pay the electricity bill according to the last slab rate which they consume.

In the previous system, they had to pay only the price of units consumed in every slab. The restoration of the previous slab system may provide substantial relief to consumers. Its restoration was supported by almost every member of the sub-committee.

A proposal of withdrawing the GST from power bills was also discussed. The members of the committee were of the view that a large number of power consumers were not taxable, so the GST should be removed.

However, FBR chairman, while talking to industrialists in Lahore on Friday, had ruled out any possibility of withdrawing the GST.

Meanwhile, sources said President Zardari had taken a serious notice of public protests against the government due to miscalculations in the power tariff hike formula.

The direction given to banks to deduct 40 per cent from the bills as they are presented nevertheless brings some relief to consumers. The deduction will mean that, in effect, the previous rate has been restored. A final decision on the matter will be taken by the sub-committee which is to assess the situation and submit recommendations to the government. The demonstration by the government that it is willing to hear the voice of people is welcome. Even though the wave of anger ignited by crippling loadshedding combined with inflated bills should have been anticipated and the raise considered in the light of the overall situation before it was imposed, it is still better to act late rather than not at all. In the recent past we have seen too many ugly sights of people attempting only to draw attention to their grievances being ruthlessly bludgeoned by police goons acting on orders to quell any display of dissent. Such attacks, on journalists, on teachers, on lawyers and on ordinary citizens, had been one of the especially distasteful aspects the last military regime led by former president Pervez Musharraf. One of the many merits of democracy, no matter how flawed its working may be, is that governments are more receptive to public will and less willing to use brutal force against them.

But the decision taken regarding the power tariff must not be over-played. There are still very real fears that the increase will be restored, fully or partially and that the committee may well be a temporary measure to deflect severe public criticism and anger. The power protests must be regarded as evidence of the wider plight of people. The government must remember that its primary duty is to these people. The decision regarding the power tariff is a miniscule one when superimposed on the full picture. The degree of human misery and the extent of frustration over a system of rule that has been unable to provide the people with basic needs is currently immense. This problem needs to be addressed. The leadership needs to demonstrate it is willing and able to do so. Otherwise we will have more crises such as the one created by the power riots. A holistic strategy is needed to tackle the desperation that exists everywhere. Piecemeal solutions, like the temporary suspension of the power price raise, will in the long run serve little purpose.
Excerpted by Editorial The News

 

[DarkStar]

'Makro committed to build world class centres in all major cities'​

KARACHI (October 25 2008): Makro is committed to build world class wholesale centres in all major cities of Pakistan, Makro Pakistan Managing Director Merek Minkiewicz said at a seminar on 'Makro Modern Retailing', organised by Management Association of Pakistan here on Thursday.

He said that Makro, with the help and share of Habib, already has three centres operational in Karachi and one in Lahore, and its fifth centre, at Model Town, Lahore, is scheduled to open by the end of this year. Each Makro centre is air-conditioned, has a sale area of 12,000 sq ft, and parking space for 400 vehicles, and is open seven days a week from 8:00 am to 12:00 midnight, he said.

Other speakers included Imran Ejaz, Director, Season Food, Sadia Naveed, MD English Biscuit Manufacturers, and Abrar Hasan, CEO, National Foods. Makro, a chain of wholesale centres operating in many countries around Asia and South America, dealing in food and non-food consumer goods, has pioneered the modern, organised and qualified retails in Pakistan.

As i wrote a few weeks ago, this spells doom for pakistani traders. in the long run, it will be the death knell to small and medium sized businesses. will somebody plz listen. this is not the kind of FDO that we want or need.

 

[pkpatriotic]

As i wrote a few weeks ago, this spells doom for pakistani traders. in the long run, it will be the death knell to small and medium sized businesses. will somebody plz listen. this is not the kind of FDO that we want or need.

Dear DS........Here is not only makro who growing up fast by openng its stores in karachi besides Lahore, but 'matro' is also in pipeline, they already have aquired lands for its stores in Karachi and lahore.
In our present senario, to be honest non of our rulers knows the vital impacts & contributions of SMEs & VOT on country's socio-economy which especially the major source to boom cash flow, reduce unemployment........and enhance the tax-net, but unfortunately who care about SMEs.......delivering speeches on the occassions by secratory's drafted papers is totally different then the real understandings of the issues. ........even our major industry has been collapsed particularly textiles the major export revenue generated industry is at the verge due to non-professional (I can say crimnal) negligencies, but no one care to immediate reforms while we have dire need of foreign exchange never ever before.......so?

 

[Neo]

Fiscal deficit to be cut to 4.3pc ​

Tarin says real estate, agriculture, bourses to be taxed

Sunday, October 26, 2008

KARACHI: Adviser to Prime Minister on Finance & Economic Affairs Shaukat Tarin has said that the government has resolved to reduce the country’s fiscal deficit from 7.4 per cent to 4.3 per cent of GDP within a year.

He said that the government had already planned revenue enhancement strategies which would help stabilise both foreign exchange reserves and balance of payments.

Tarin met with prominent members of the business community at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday where he expressed concern over the news that the business community was facing a severe crisis because of the present economic and financial conditions prevailing in the country.

He explained that the first and foremost measure would be to tax those sectors which had been provided relief by the government until now, adding that real estate, agriculture and stock market would be amongst the sectors to be brought under the tax net.

He further said that the private sector would be involved in public sector projects and cited the example of India which had taken the services of private sector businessmen in utilities.

Tarin stressed that the government needed to rationalise its expenditures and “stop wastage of precious resources.” He said that a helpline was being set up where businessmen could call and complain if local banks were cancelling their credit lines.

“If a bank has liquidity problems then it should inform its customers and cannot cancel credit lines of businessmen, and therefore this helpline would aid the business community in providing solutions if any problem does arise,” he added.

Shaukat Tarin said that his government would ensure that interest rates of banks were brought down to below 10 per cent in the next two to three years as it would help establish better industries.

He was of the view that macroeconomic indicators needed to be stabilised in which curbing of inflation remained the government’s top priority, adding if inflation was controlled the local currency would also remain in control, thus solving some of the macroeconomic problems.

He opined, “We have plans to establish different industrial parks where each one may specialise in its sector concerned.

We should be a production-based country and not consumption-based. There is no such thing as a local industry and an export industry as both industries are ours and if local industries progress, then they would start exporting too.”

Tarin requested the business community to give him 30 days for plans to be implemented and repeatedly stressed that they would be involved in decision-making.

He stated that the government had decided to involve stakeholders from every sector in the Planning Commission, particularly business leaders, and this think tank would help in institutional building.

He appealed to the business community to join hands with the government and work along with it as the country was in crisis and needed its people to help revive the rapidly falling economy.

“It has been most unfortunate that Pakistan keeps falling back to where it started from,” Tarin commented. “We were close to becoming the Asian Tigers and broke several records, however, we once again face economic crisis,” he said.

Tarin shared that all their plans A, B and C that he had announced earlier in the week involved the people of Pakistan in the form of banking sector, agriculture sector, energy, gas and petroleum sector amongst others.

He articulated that one mechanism that the government had planned out was to determine household incomes of the rich and poor people of Pakistan and only after an assessment would financial relief be provided to the poor class of the community, such as lower electricity bills, whereas others would have to abide by the state laws.

 

[Neo]

Agriculture may give economy a jumpstart ​

Sunday, October 26, 2008

LAHORE: China, which has emerged globally as the most progressive agricultural country, could facilitate Pakistan in increasing agricultural productivity, helping it come out of current economic crisis.

The News has found that while going around the world in search of hard cash to avoid looming default, the economic managers have failed to give a viable proposal which could ensure that the country would not need similar assistance a few months later.

The industrial sector is shattered and most of the industries like textile, engineering, steel and plastic are on the verge of collapse for one reason or the other. High interest rates, inadequate infrastructure, high energy cost and cash crunch have impacted the industrial sector in such a manner that the revival of many units may not be possible. However, prudent economic policies in future may spur industrial growth in the medium term of three to four years.

Increasing agricultural productivity is the shortest possible and sustainable way to give the economy a jump-start. Pakistan has the infrastructure to improve its agricultural productivity which at present is much below its potential. Current food crisis is likely to last for a while and would provide opportunities to producers of surplus commodities to replenish their reserves.

Pakistan could request China to provide technical and financial assistance in this field only. The progress made by China in agricultural productivity could be judged from the fact that, according to Food and Agriculture Organisation’s statistics, wheat productivity in Pakistan and China was at the same level of 1.14 to 1.17 tonnes per hectare in 1970. However, Chinese wheat production has now reached 4.78 tonnes per hectare while Pakistan harvests 2.67 tonnes per hectare.

Germany, with wheat yield of 7.1 tonnes per hectare, is the world leader while Pakistani scientists claim the country has the potential to produce average 6.8 tonnes per hectare if proper facilitations are provided to farmers.

Rice production in China is three times higher than Pakistan and it produces 2.5 times more garlic per hectare than Pakistan. Productivity of onion in China is 1.8 times higher than Pakistan and it also has higher productivity in sugarcane and cotton. In 1970, Pakistan and China had same levels of productivity in all crops.

China might have some reservations about providing cash relief to Pakistan but it would gladly offer required support for agriculture by transferring its technological research and seeds to boost farm growth. Pakistanis, on the other hand, have better competence in agriculture than other fields and farmers could replicate Chinese experience here.

Agricultural experts say Pakistan needs laser levelers for its farms to conserve water which China could supply. The country has required number of qualified agricultural graduates in provincial extension departments, which are lethargic.

Wheat farmers get 40 per cent of the agriculture extension support required for the crop against 90 per cent provided by China. The extension departments nurture crops the world over by ensuring availability of best seeds, quality fertilisers and pesticides and advising farmers about the quality of their soil. They also suggest remedial measures to improve soil quality.

Chinese experts could revitalise the extension departments of the provinces and could also provide handy soil-testing equipment.

High agricultural productivity would create opportunities for agro-based industries in rural areas and the industries would be more sustainable as basic raw material would come from local agriculture.

 

[Neo]

Chinese company keen on building hydropower project ​

Sunday, October 26, 2008

ISLAMABAD: China International Water and Electric Corporation (CWE) has shown its willingness to make an investment of $1 million in Pakistan by constructing 1,100-megawatt Kohala hydropower project on build, operate and transfer basis.

CWE Vice President Wang came up with this resolve to build the hydropower project during his presentation on his company’s activities in various sectors of the economy. He gave the presentation to Federal Minister for Water and Power Raja Pervez Ashraf here on Saturday.

The minister said that the government would facilitate and provide an investor-friendly environment to the Chinese and all foreign investors to attract investment in the water and power sector.

He said that Chinese interest to invest in hydel power generation projects would help meet the country’s future power requirements at affordable prices.

During the presentation, the Chinese companies’ top official also informed that the company has completed 600 projects in 60 countries around the world. The company has completed 17 projects in irrigation, thermal, water control, and highways sectors in Pakistan. It has also completed two hydropower projects in Pakistan.

The Minister appreciated their interest to invest in the hydel power generation and said that international consultants have been appointed for detailed engineering, designs and tendering documents for the Kohala hydropower project, which are in their final stages. He said that the government will consider the proposals of the Chinese company for this very important project.

He said that the government will provide complete assistance and data information related to the hydel projects to the Chinese companies that are interested in investing in this sector. He stated that there is a favorable business environment in Pakistan and confidence of the foreign investors would gain new heights and the economy would be made more stable through adopting rationale policies to remove all hindrances and bottlenecks in this respect. Later, a six member delegation of the said Chinese company here on Saturday in the ministry, met top officials of the Ministry of Water and Power which include Adviser to Ministry, Additional Secretary and other senior officials of the Ministry and Wapda.

The Minister said that Chinese investment in Pakistan will strengthen the bonds of the everlasting Sin-Pak friendship. He said that Pakistan has always admired Chinese skills and felt comfortable working with them.

 

[Neo]

Tax-to-GDP ratio to be raised to 15 percent: Tarin​

KARACHI (October 26 2008): Advisor to the Prime Minister on Economy, Shaukat Tarin on Saturday said the government has drawn up a roadmap to revitalise economy and the measures announced by him would have far-reaching effects in putting the economy back on track.

The measures include improvement of stock exchanges, real estate and agriculture and bring non-taxpayer sectors into the tax net while the tax-to-GDP ratio would be increased from present 10.5 percent to 15 percent.

Addressing the meeting of traders and businessmen at Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday, Tarin said the country is faced with challenges such as poverty and soaring inflation. The majority of the population that earns one dollar per day has presently reached 45 percent from 25 percent. The poverty in the country has risen to 25 percent from 12 percent, he added.

He said that Pakistan will not default, as it has three options A, B and C, adding that the IMF will be contacted under option C. He said the government will borrow money from the IMF on its own terms and conditions, if needed.

Tarin said the government will provide loans to agro-based industries, while the fiscal deficit will be reduced to 4.3 percent from 7.4 percent. He said that the tight monetary policy should be taken, however, it requires time, as the previous government published excessive currency notes lent huge credits, forcing the present government keep the policy tightened. He said the government and civil society should evolve a plan for reducing the increasing poverty in the country, which has reached 40 percent in last few months.

The advisor said that although stock exchange capitalisation has increased to 70 billion dollars from two billion dollars, it is yet to be included in the economic system. He assured the traders and industrialists that banks will not default, adding that reforms are being introduced to improve the banking system and protect the public wealth.

Regarding the ailing industries, he said that with the consultation and best planning, over 4000 industries running on gas and the power plants will soon resume operation. Commenting on declining prices of petroleum products globally, the advisor said the government will also reduce them in the domestic market in next three months.

Tarin said that he has directed banks not to cut credit lines being provided to traders and industrialists. He said the government will inject liquidity into financially weak banks. He said, "we will have to chalk out plans for the next 20 year for becoming the 'Asian Tiger'. Although the previous government claimed of becoming the Tiger, the ground realities and economic indicators were altogether contrary to it," he added.

He said that no policy will be drawn without taking the businessmen community into confidence, adding that some will be included in the board of governors of the Planning Commission. He said that polices drawn in the Commission will immediately be executed.

About the taxation system, he said that the government will run it on smooth and lenient manner so that taxpayers could overwhelmingly pay taxes without any difficulties or fear. He said that the international audit firms will also be called for audit of companies randomly.

He suggested that the interest rate should not be over double digits It should be 3-5 percent. He said that all the utilities will be formed uniformly, while all subsidiaries will end. Meanwhile, the advisor assured the delegation of Pakistan Cotton Ginners Association led by its Chairman Chaudhry Muhammad Akram that Trading Corporation of Pakistan would support the cotton market by purchasing cotton from ginners and stabilise the cotton prices.

On this occasion, President of FPCCI, Taveer Ahmed Shaikh, has said that they are happy on confidence building measures (CBMs) taken by the government, and especially by advisor Shaukat Tarin, but the business community has some reservations on present economic situation and policies.

He said that now it was being felt by the industry that the liquidity provided by change in CRR and SLR might be used to maintain the stock market indicators. That would be risky strategy. He also drew attention of the advisor on the issues of cost comparison of electricity being provided to industries with other countries, including China, India, Bangladesh and Sri Lanka.

He said that being a major consumer of electricity with 40 percent of total electricity, industry was facing great hardship due to decision of sharp increase in electricity tariff. He demanded of the advisor that industry should be consulted before taking any step towards raising prices.

He also discussed the monetary policy and banking spread, L/C margin, deteriorating law and order situation and energy crisis. The meeting was attended by FPCCI President Tanveer Ahmed Shaikh, Vice President Zubair Tufail, Farooq Dadabhoy, President Lahore Chambers of Commerce and Industry, Azhar Saeed Butt, former president of FPCCI, Tariq Sayeed, Captain Haleem Siddiqui and others.

 

[Neo]

Ministry asked to set up power plants to overcome crisis​

ISLAMABAD (October 26 2008): President Asif Ali Zardari on Saturday directed the Water and Power Ministry to step up power plants for overcoming the severe power crisis being confronted by the country. He said this while chairing an emergency meeting on power situation held here at the Presidency.

Zardari said there was no alternative to reduce the pass-through cost of electricity and asked the Ministry to consider whether it can be done through commodity trading enabling the government to book oil cost in the international market on the long-term basis. Earlier, Water and Power Minister Raja Pervaiz Ashraf gave a detailed presentation on the availability of power, the specter of load shedding and the prevalent tariff.

The minister said a special committee had already been constituted to review the increased power tariff, which decided to provide interim relief to the consumers and a sub committee had been set up to review the tariff structure. Pervaiz Ashraf said there was a power deficit of over 4700 mega watt (MW) in the country which led to resorting to hours long load shedding.

The minister also outlined the steps already taken to end load shedding by the end of next year. According to the plan, rental power plants at Faisalabad, Guddu, Sialkot, Multan and Quetta will generate 1000MW. It also include setting up of another four power plants run on LPG with a total capacity of 900 MW and the projects will be set up on fast track basis. Over 1200MW of power will be generated by IPPs and another 72 MW from hydro sources, the minister said.

 

[Neo]

BOT basis: Chinese company ready to build Kohala hydel project​

ISLAMABAD (October 26 2008): A Chinese firm, China International Water and Electric Corporation (CWE), has consented to invest in the 1100 mw Kohala hydropower project on 'Build, Operate, Transfer' (BOT) basis. The vice-president of the company, Wang said this in a meeting with the Minister for Water and Power, Pervez Ashraf, here on Saturday.

A six-member CWE delegation also showed interest to invest in other projects in hydel generation. The minister said the government would facilitate and provide investor-friendly environment to the Chinese and all other foreign investors to attract investment in the water and power sector.

He said that interest of the Chinese to invest in hydel generation projects would help meet the country's future power requirements at affordable price. He said that Chinese investment in Pakistan would strengthen the bonds of everlasting Sino-Pak friendship, and added that Pakistan has always admired Chinese skills and felt comfortable in working with them.

Earlier, Wang gave a detailed presentation to the Minister on his company's ongoing projects and briefed him on the expertise in the construction of hydropower projects. The company showed interest in making millions of dollars investment in Pakistan by constructing 1100 mw Kohala hydropower project on BOT basis.

The minister was informed that the company has completed 600 projects in 60 countries of the world. The company has completed 17 projects in irrigation, thermal, water control, highways sectors in Pakistan. It has also completed two hydropower projects in Pakistan.

The minister said that the government would provide complete assistance and data related to hydel projects to the Chinese companies who would be interested to invest in this sector. He said that there is favourable business environment in Pakistan and confidence of foreign investors would gain new heights and the economy would be made more stable through adopting rational policies to remove all hindrances and bottlenecks in this respect.

 

[Neo]

'16 million went below poverty line during previous government'​

ISLAMABAD (October 26 2008): Former finance minister Sartaj Aziz said on Saturday that about 16 million more people went below poverty line during the previous regime due to inadequate economic policies. Talking to a private TV channel, he said, according to a survey, presently about 60 million people are living below the poverty line in Pakistan.

He said during the last eight years no due attention was given on the agriculture sector, which is backbone of the country's economy. The former minister said there is sufficient wheat stock but some restrictions on its free movement, because of smuggling fear, are creating problem in smooth supply of this essential commodity.

He underlined the need for ensuring uniformed price of flour across the country, which would help stop smuggling and hoarding. In reply to a question, he said Benazir Income Support Programme is in place to extend financial help to the people living below the poverty line on regular basis.

But, business community in collaboration with welfare organisations must arrange "Langar" (free food) for deserving people to provide them immediate relief, he added. Sartaj Aziz was confident that due to prudent economic policies of the present government the food situation would return to normalcy during the next year.

 

[Neo]

Sending money from abroad: Zardari for encouraging expatriates to use legal channels​

KARACHI (October 26 2008): President Asif Ali Zardari on Saturday directed concerned authorities to devise mechanism for encouraging overseas Pakistanis to use legal channels for sending money home. Zardari gave these directives during a meeting held in Islamabad with a delegation of Karachi Chamber of Commerce and Industry led by its former president and leader of business community, Siraj Kassim Teli.

The delegation told the President that overseas Pakistanis who are sending small amount of 200 or 500 dollars prefer to send it through Hundi to save bank charges. Giving account of meeting with Asif Ali Zardari, former President of KCCI Zubair Motiwala said that the business community has suggested to the President that if that small amount gets a parity with Kibor rate, expatriates may use legal channel instead of Hundi for sending money home.

Motiwala said that the delegation deliberated on four points which included bank mark-up rate, monitory policy, power and gas tariff The delegation demanded immediate withdrawal of power tariff raised for domestic consumers, small and medium industries. Asif Ali Zardari assured the delegation that a decision would be taken on the issue within next three to four days.

On the issue of gas tariff, the delegation apprises the President about the impact of increase in gas tariff for industrial and commercial consumers and demanded its withdrawal. They also discussed the issue of subsidy provided to fertiliser companies, which was not passed on to fertilizer consumers. They demanded withdrawal of gas subsidy to fertilizer companies. The delegation demanded that mark-up rates be reduced by 4 percent through reducing spread, which is 7 percent.

The President assured the delegation that the matter would be considered and a decision would be announced in next few days. KCCI President Anjum Nisar said that the President agreed to appoint business community representative and former president of Karachi Chamber of Commerce and Industry as Deputy Chairman, Oil and Gas Regulatory Authority (Ogra).

The president also directed leader of business community and former president of KCCI, Siraj Kassim Teli to nominate persons from private sector to be included in board of directors of National Electric Power Regulatory Authority (Nepra), Trade Development Authority (TDAP), Export Processing Zone (EPZ) and State Bank of Pakistan. The delegation also demanded reconstitution of regulatory authorities.

 

[Neo]

Expo Pakistan to attract 350 foreign buyers​

KARACHI, Oct 25: Expo Pakistan 2008 is expected to attract around 350 foreign buyers and visitors form 45 countries, including US, UK, Canada, Japan and Middle East.

Individuals, business houses, corporate and representatives from trade bodies would be attending the show form these countries, official sources said.

The four-day mega event, starting from Oct 27, will be a showcase for a large number of local exhibitors who would be displaying a large range of their products.

Measures have been completed to ensure security for the event and foreign visitors.

Commerce Minister Ahmed Mukhtar will be inaugurating the trade fair in the morning and on the same day Sindh Governor Ishratul Ibad will host a dinner in honor of foreign dignitaries.

Sources said that foreign buyers have started arriving and around 332 have confirmed their visit to Expo Pakistan 2008.

There will 174 foreign buyers who would be state guests and their all sorts of expenditures, including air travel ticket, hotel room and other courtesies, will be fully paid by the government of Pakistan.

Strict criteria has been laid down for those who would be enjoying the status of state guests.

According to the Trade Development Authority of Pakistan (TDAP), the organizor of the event, for availing the status of state guest the foreign buyer or visitor must have a business turnover of over $10 million and imports to the tune of $5 million.In the other category of foreign visitors belonging to SMEs, the visitors must have a potential to import, having a turnover of $5million and import volume of $1 million. They are being paid for their hotel room and courtesies which includes protocol and transport.

Similarly, visitors from non-traditional markets, such as Africa, CIS, etc., having a business turnover of $1 million imports or less than dollar one million will also get free hotel room and courtesies.

The TDAP has made a comprehensive document for getting full information about the status of each foreign visitor.

The commercial consular had been given the task to get the relevant information and fill the document giving company, buyer or trade profile, etc.

Sources said that 400 local exhibitors will be displaying a large range of products, starting from food items, pharmaceuticals, engineering, surgical goods, sports and leather goods, textile, home and decor, information technology, services (pavilion and clubs), handicrafts, etc.

The display of products at the Expo Pakistan 2008 being held at Karachi Expo Centre will stay throughout the four days of the exhibition but general visitors have been given two days Oct 29 and 30.

Local trade visitors are allowed to visit on Oct 27 and 28 and will have to get their tickets from gate 2 opposite SSGC building on paying Rs200 and presenting their ID cards and business cards.