profit.com.pk

US paranoia shifts from Tehran to Pyongyang

Page 02

Sunday, 08 April, 2012

LAHORE

APP

PReSIDeNT Asif Ali Zardarion Saturday called forbroad-based political con-sensus on national economic

policies, owned by the business com-munity, for their continuity regardlessof which government was in power.

he said that after having achievedconsensus on political reforms it wastime to work towards consensus oneconomic reforms as “we cannot affordpoliticization of economic policies ofthe country”. The President said thisduring a meeting with the businessmenand entrepreneurs belonging to varioussectors, including textile, banking, en-gineering, chemical, fertilizers, cement,tractors, construction and others at theGovernor house here. Briefing aboutthe meeting, Spokesperson to the Pres-ident Senator Farhatullah Babar saidthat the President commended thebusiness community for the persistentgood performance and achievingrecord export performance despite thevarious challenges on internal and ex-ternal fronts, including the problems ofmilitancy and law and order, powershortages, global economic slowdownand the reluctance of foreign investorsto visit Pakistan.

The President, while commentingon the hard economic situation anddifficult conditions inherited by thegovernment, said that the country was

facing numerous challenges from bothwithin and outside the borders.

he said that Pakistan was a wheatexporting country but the lack of con-tinuity in economic policies put thecountry in difficult conditions resultingin huge energy shortage besides creat-ing the issue of circular debt for thepresent government. The Presidentsaid that the present government hasconsulted and will continue to take onboard the business community of thecountry on all major economic deci-sions, such as the federal budget andtrade policy matters as the governmentbelieves that the input of business com-munity is very important in devisingpolicy that is business-friendly as wellas productive. The President said theeconomic policies of government aremainly aimed at job creation for youth,improving investment climate and re-solving energy issues. While comment-ing on the current power and energycrises in the country, he said that thegovernment was fully alive to the issueand the resolution of the energy crisiswas certainly on a high priority for it.

he said that the government wasbusy in undertaking measures, bothshort and long term, for easing the en-ergy crises which include the injectionof more hydro power into the systemthrough construction of small, mediumand large dams in various parts of thecountry, wind, solar and biomass energyprojects, besides the import of naturalgas from the neighbouring countries. he

said that multinationals and Pakistanijoint ventures were now undertakingprojects to produce electricity at Tharand the government was also expectingconstruction of 11 wind power projectsto begin shortly. The Spokesperson saidthat the President in reply to a questionregarding loadshedding, advised thegovernment to consider exemption ofexpress feeders of industries in Lahoreregion from loadshedding.

he directed the Water and PowerMinister, Syed Naveed Qamar, who wasalso present in the meeting, to take stepsin this regard. The President, whilehighlighting various focused areas of thegovernment’s economic policies, saidthat the government had emphasizedregional trade and for this purposes cur-rency swap agreements had been nego-tiated with a number of countries,including Turkey, Sri Lanka, China,Russia and Jordan. The President saidthat the currency swap agreements ne-gotiated with various countries wouldprovide huge incentives to the businesscommunity to actively explore and en-hance business linkages with thesecountries as the traders would be able totrade in local currencies obviating theneed to look for dollars or other foreigncurrencies to do business.

The Spokesperson said comment-ing on the government’s policy regard-ing foreign remittances, the Presidentsaid that the government have devisedincentive packages and policies for ex-patriate Pakistanis to attract more for-

eign remittances. The incentivizationpolicies resulted in robust growth ofremittances that were 6 billion dollarsin 2007 have significantly increased tonearly 12 billion dollars now.

The President invited the businesscommunity to participate in the PublicPrivate Partnership projects in infra-structure sector on Build Operate Own(BOO) basis by raising equity throughstock exchange. The President assuredthe business community that the pres-ent government will continue to workfor the welfare of Pakistan’s businessinterests and creating businessfriendly environment in the country.The President urged the business com-munity to take ownership of policies ofthe government unlike the past whenthe PPP’s policy to generate 40,000megawatts of electricity through Inde-pendent Power Producers (IPPs) wasput in cold storage, which led to thepresent power shortages in the country.Counting the government’s measuresfor improving the country’s economy,he said that stock exchange is trading at12000 points and the credit rating hasimproved internationally. he said thatrevenue collection upto March 2012stood at Rs. 1270 billion as compared toRs. 1020 billion during the correspon-ding period of last year reflecting 25%increase. he said the exports continuedto register an upward trend despite thehigh base of last year exports of 30%increase that touched record figure ofdollars 25.5 billions.

President crosses out ‘economic consensusspeech’ from his to-do list for 2012

IT’S just past the too-soon point to comment onthe RPP verdict. Granted, the project had weight,at least in theory, both when Gen Musharraf’s

team okayed it, and later, when the presentdispensation started doling out invites. And true, thecourt’s precedent sets a landmark. There will bebetter checks and balances next time. In fact, theentire risk management exercise might undergothorough overhaul. Yet there is an even moreimportant angle to the story. It is even moresignificant to see how justice is now meted out tothose at the centre of what must qualify as a gravecrime against the country – exploiting nationalenergy shortage to enrich a corrupt, powerful few.And the novelty aspect of the ruling notwithstanding,initial signs are not very pleasant. It does not exactlybuild confidence when the only person crying hoarsebefore anybody who’d listen to cease and desist – thefinance minister of this government’s first year – is puton the eCL pending investigation. even moreimportant, though, is charting a way out of the presentquagmire. energy shortage is at the centre of all thingspreventing a slow, sustainable pullout of stagflation. Itdoes not let industry function. It has slowed downmanufacturing. It has even compromised 40 per centexport output in the outgoing fiscal. In households,consistent power outages have enraged the publicenough to take to the streets, with rioting threateningassuming disturbing momentum. In such times, merely identifying all that is wrong,though essential, is an incomplete exercise. Now thatthe court has indulged in the matter, it must extendits writ to the maximum, exerting whatever pressureat its disposal to get concerned quarters to chalk outthe most cost effective way forward. Special caremust be taken to weed out whatever irregularitieshave already entered the post-verdict narrative. Andremoving the good former finance minister’s namefor the list is a good point to start.

CoMMent

The RPPplayoutg Mentions politicisation of economic policies among the list of things our nation can not afford g Meets businessmenand entrepreneurs to sort out differences g Claims his govt ‘inherited’ the economic predicament, to no one’s surprise

LAHORE

STAFF REPORT

The new Managing Director ofPakistan International Airlines(PIA) Rao Qamar Suleman facechallenges of not only

revamping the huge human resource andfinancial loopholes of the airline butwould also have to seriously and

effectively check the flaws in flightoperations which previous managementdid not even consider worthy enough.Latest in series of setbacks at foreigndestination is the most lucrative stationJeddah, the reason nothing new toairline, flights operating delayed.earlier, the PIA was reprimanded bythe British aviation authorities overdelays and lax safety. And this time, thenational airline has been warned by theSaudi civil aviation authorities toensure its scheduled landing time forthe summer flights. “Or be ready toshift night landings to the day time,”which will result in inconvenience tothe PIA passengers.The new MD PIA sources said, will haveto take stern action by appointingefficient staff at strategic positions in alldepartments to send message to all ranksthat merit will be the only criteria,otherwise the sloppy flight operation willget further sluggish as currently theairline is plagued with unconcerned staff.Sources informed that the Saudis havepointed out that frequent arrival anddeparture delays by the PIA flights quite

much disturb the schedules ofother airlines at the busy airports ofJeddah and Riyadh.“Officials of PIA in Saudi Arabia havepassed on the reservations of the Saudiaviation authorities to the PIAheadquarters with a request to give anundertaking that the summer flightswould adhere to the scheduled timings,”said the source. Since, they are closelymonitoring all the PIA flights there, anyslippage in this regard would cost PIAdearly, sources added.earlier the Jeddah King AbdulAzizAirport Authority had shifted PIA flightoperations to hajj terminal from normalterminal for delays and carrying mostlyUmrah passengers on regular flights.Sources informed that since Jan 1st 2012till the end of March almost 400 flightsfrom different cities of Pakistan to/fromJeddah got delayed out of more thanonly 500 flights. During the same period,around 50 flights to/from Medina alsogot delayed out of above 60 flights.On the other hand, concerned PIAofficials have warned the managementthat the shift of flight landings in Saudi

Arabiafrom nightto day timewould upset the schedule of almost allother PIA flights. Therefore, it wasadvised to strictly follow the schedules,said the sources.The Director Marketing PIA in one of hiscommunications with the managementsaid that “the concerns shown by GeneralAuthority of Civil Aviation in SaudiArabia and KAIA need to be takenseriously. It is requested that we mustmaintain punctuality to avoid anyuntoward situation in PK’s operations.All efforts be made to maintain alldepartures/arrivals as per schedule filedwith the Regulatory Authorities.”he further said that “It may please benoted that the Saudis are very rigid andif once decided they can ask PK to shiftits operation in day times. Such concernshave time and again been highlighted byGACA/KAIA in certain meetings with thelocal PK authorities.”“Shifting of operations to day timeswill not only hamper other PKnetwork operation but it will also give

a bad name to the national flagcarrier. Such a bad impression alsoaffects market and definitelypassengers will also be disturbed anddivert to other carriers,” he added.It may be mentioned here thatairports in Saudi Arabia are the onesmost lucrative for PIA’s business, butthe national airlines’ indifferentattitude towards these stations willland PIA in trouble.The mentioning of earlier warningissued to PIA by the authorities of KingAbdulaziz International Airport Jeddahwould not be out of place here as theyrefused to operate the PIA flights on theconditions of PIA. It was reported thatthe delayed operations of 32 flights outof 40 flights scheduled to Jeddah in thejust 20 days of February (from 1stto20th) by PIA resulted in taking theKAIA authorities stern action againstthe incessant inefficiency of the PIAauthorities. It is pertinent to mentionthat PIA’s flights from from Karachi,Lahore, Islamabad, and Peshawarstations to Jeddah usually got delayedon daily basis.

Being PIAMD is athanklessjob…g With the small matter of

revamping financialloopholes in the airlinesalready on the table, newMD is set to facechallenges abroad as well

PRO 08-04-2012_Layout 1 4/7/2012 11:37 PM Page 1

news02Sunday, 08 April, 2012

US paranoia shifts from Tehran to Pyongyang

ISLAMABAD

AMER SIAL

Acommittee consistingof experts, theeconomic AdvisoryCouncil (eAC) on

Saturday advised thegovernment to engage with theprovincial governments todiscuss revenue mobilizationefforts at the provincial level toincrease the annual revenuegeneration.The advice was give at themeeting of eAC chaired byFinance Minister Dr. Abdulhafeez and attended byConvener eAC Dr. hafizA.Pasha, Deputy Chairman,Planning Commission ShahnazWazir Ali, Dr. ShamshadAkhtar, Nasim Beg, Bashir AliMohommad, Dr. Aisha GhausPasha, Dr. Ijaz Nabi, Ali habib,Ali Jameel, Arshad Zuberi,Farid Rehman and ShoaibSultan Khan.The advice has gainedimportance as all the federalgovernment efforts to increasethe tax to GDP ratio from below9 percent to 12 percent havefailed during the last four yearsin office. The reason being thelow tax collection from services,agriculture and real estate thatfall under provincialjurisdiction. The powerful lobbyof feudal has successfullythwarted any attempt to tax theagriculture income. Withoutincluding new areas in the taxnet the government is not likely

to come out of low revenuecollection circles leading to debtcrisis. The meeting also discussedproposals for Budget 2012-13and assist in the formulation ofeconomic policies for the nextyear. economic Affairs Divisiongave a presentation on‘Disbursement of ForeignAssistance 2011-12’.Operational budgetaryproposals were presented byrespective sub-committees ofeAC in areas of industrial andagriculture sectors includingtextile policy, capital marketsand balance of payments. Thesub-committees on social sectorand fiscal coordination gavepreliminary inputs withdetailed presentation to begiven in the next meeting ofeAC. The eAC asked DeputyChairman PlanningCommission to present astrategy on tariffrationalization, FBR to presenta strategic perspective on taxreforms, Chairman SeCP topresent a strategy fordevelopment of capital marketsand Ijaz Nabi to give a strategicview of Indo-Pak trade in thenext meeting. It was decidedthat along all other sub-committees will presenttheir more detailed proposalsfor the Budget 2012-13 in thenext meeting of the eAC afterengagement with the keystakeholders. Addressing anational enforcement dialogueon tax evasion on Friday, the

Finance Minister said theculture of tax evasion was aserious issue and thegovernment is taking concretesteps to control this menace. hesaid that tax evasion is causingrevenue shortfall in the countryand thus hampering nationaldevelopment and public welfareprojects and dependence onforeign loans is increasing dueto this undesirable practice. hehighlighted the weak regulatorymechanism is one of thereasons for tax evasion as itencourages tax evadersresulting in ever increasingnumber of people andorganizations starting gettinginvolved in tax evasion.Speaking on the occasion,Chairman FBR Mumtaz haiderRizvi rejected the impression ofnon-existence of effective taxmechanism in the country. hesaid that the issue of taxevasion in the cigarette industryis of very serious nature and iscaused by non-compliance tothe legal framework. he saidthat FBR has established adedicated cell in Peshawarwhich is doing all efforts tocheck production anddistribution of illegal cigarettesas well as entry of smuggledcigarettes into the countrywhich is evident from recentsuccessful raids in KPK andSindh. he said thatintroduction of special auditsystem to check suspicious taxevasion has helped a lot incountering tax evasion.

KARACHI

STAFF REPORT

The banks defrauded al-legedly by Khurram Rasool,former advisor to Prime

Minister Yousuf Raza Gilani, tendto mobilize next week the SupremeCourt against the Federal Investiga-tion Agency (FIA) for the spyagency’s alleged inaction againstthe influential accused, it emergedon Saturday.

According to sources, a coupleof national and international bankshad approached the FIA in Novem-ber last year for initiating a probeagainst Khurram who had obtainedloan from a local bank against theproperties he had already mort-gaged with a foreign bank for a loanhe had defaulted on.

The FIA was informed that theex-advisor to PM had defaulted on

a Rs 10 million loan extended to hisself-owned concern against mort-gage of his two valuable propertiesin Rawalpindi. After Khurram haddefaulted on his loan the bank ob-tained a decree for recovery of itsoutstanding amount. During the re-covery process it was revealed thatthe mortgaged properties were al-ready pledged to a foreign bank toobtain a loan facility.

The mortgaged properties in-clude two petrol pumps built on apiece of land measuring 11 kanals intotal and situated, respectively, onG.T Road and Iqbal Town ofRawalpindi. The local bank had ac-cessed the FIA last year, on Novem-ber 21, by filing a complaint againstKhurram praying that the accusedbe taken to task in accordance withlaw of the land. however, thesources claimed that FIA’s investi-gators, working on the case, were

“hesitant” to take Khurram to thebooks, thus making the exploitedbanks having opted to go in litiga-tion against higher ups in the spyagency. “The Investigating Officerhas (allegedly) not taken any actionagainst the accused till date despiterepeated requests from both thebanks and no case had so far beenregistered against the accused,”said the sources.

They said the banks had pre-pared a petition through which theapex court would be prayed to di-rect the Director General FIA toregister a case against Khurram forcommitting fraud with the banks.

The banks would petition thatthe former advisor to the premierwith a “prior design, ulterior mo-tives and criminal intent” had mort-gaged the properties with the localbank with an intention of commit-ting fraud. “The fact of the propertybeing mortgaged with the foreignbank was intentionally not dis-closed to the local bank and suc-ceeded in obtaining a financefacility,” reads the banks’ petition.

Work in tandem,will you please?g eAC stresses joint centre-province strategy for revenue mobilisation

Banking sector spoofs a James Bond film

KUNWAR KHULDUNE SHAHID

AS Iranian sanctions arebeginning to bite back,as everyone associatedwith the oil game had

prognosticated, the US is noweying to play dear godfather in theKorean Peninsula. It’s a quagmirethat the US is throwing the entireglobal economy through the Iranepisode, as the banks that nowface difficulty dealing with Iranwould vouch for. And nowanother episode on the otherflank of the Asian realm isensuring that the region becomesmore volatile day by day.After China categorically statedits intention of a ‘strongretaliation’ against any strike onIran, Pyongyang’s unyieldingstance on their upcomingsatellite launch – that has faced alot of unnecessary hullabaloofrom the US and its chums – isthreatening to throw a very nastycat among some extremelyvulnerable pigeons. With thelaunch scheduled for April 12through to April 16 theKwangmyongsong-3 satellite isall set to nourish the paranoia ofpresident Barack Obama andthat of his good friend LeeMyung-bak, South Koreanpresident.

Just like Iran’s uraniumenrichment programme isapparently a shoo-in to destroythe whole mighty universe bymetamorphosing into a nuclearbomb making spree, NorthKorea’s missile launch is alsoostensibly being designed as apretext to expand their very ownprogramme of nuclear terrorism.If there ever is an SI unitdesigned to measure the degreeof paranoia – and I think theworld needs one – that aparticular entity can musterinside their existence, the levelbeing flaunted by the US and itsgood friends might just be usedto define the upper extreme ofthat paranoia gauge. I meanNorth Korea has even tried toassure the transparency of theirspace programme to theinternational community NASAand even the Japaneseexploration Agency have bothdeclined the offer that could well,settle the dispute. And what’smore Japan has even announcedthe extension of unilateralsanctions on North Korea foranother year!This satellite follows 2009’slaunch of Kwangmyongsong-2,which fell into the Pacific Oceanin April of that year. And just likethe present day brain fade, theUS, Japan and South Korea had

labeled that launch as anopportunity to test technology,which would eventuallytransform into a potentialintercontinental ballistic missile.That move wasfollowed by a UNSecurity Council’sstatement thatcondemned thelaunch, which in turnled to Pyongyangwithdrawing from theSix Party Talks.ever since NorthKorea announced itsreadiness for “totalwar” in February thelevel of apprehensionin Seoul and Tokyohas skyrocketed, andevery Pyongyangmanoeuvre is beingmonitored underscrutiny glasses. Andwhat Obama basicallyis doing is that he’scapitalising on theinstability of theKorean Peninsula tostrengthen his own re-election campaign.The fact thatPyongyang wantsinternational expertsto monitor the launchof Kwangmysong-3satellite connotes that

North Korea wants to showcaseits peaceful intentions – and thisstep must be acknowledged evenby the most paranoid ofPyongyang’s adversaries. The UShowever, needs tomarginalise North

Korea to

contain the expansion of Chineseinfluence in the region andhence, is simply refusing toshowcase its grey cells of logic.Nevertheless, it is pretty obviousthat Obama is making amockery of US foreignpolicy, and one wouldfeel the US citizensare smart enough tosee through it before

the elections.

The writer is Sub-Editor,Pakistan Today. He can bereached at

khulduneshahid@gmail.com

g With the Kwangmyongsong-3 satellite all set to be launched, Washington and its chums are making sceptical noises

g Banks defrauded by Khurram Rasool to drag FiA insC for inaction against ‘influential’ ex-adviser to PM

Drainage services to over 40m farmers by 2020: ADBADB’s AsiAn AssistAnCe

ISLAMABAD

ONLINE

TO assist Asian countriesdrainage services to over 40million farmers by 2020,

the Asian Development Bank(ADB) has financed more than 200irrigation projects, withinvestments totaling US$6.6billion, and has some US$1.1billion of irrigation projectspipelined.In line with its Water OperationalPlan, ADB is organizing a four-dayAsian Irrigation Forum staringfrom April 11 to review the region’sperformance in irrigation andirrigated agriculture, explore thefuture of irrigation and drainage in

rural development, and identifyneeds and opportunities forstrengthened partnerships todeliver more productive irrigationservices throughout the region.With a global population of 7billion, Asian irrigation is now at acrossroads. Increasingpopulations, changing diets,growing cities, and expandingenergy and industrial productioneach demands a greater share ofavailable water resources. With increasing concerns aboutwater scarcity and food security,agriculture as the largest user ofwater must find ways to increasethe productivity of irrigation toproduce the food, fiber and fuelneeded by the growing population.

Improving the productivity ofirrigated agriculture is expected tobe the foundation for securingaffordable food for the populationof Asia-Pacific. Irrigatedagriculture has been the backboneof rural development in Asia. About70 per cent of the world’s irrigatedarea is in Asia. The ComprehensiveAssessment of Water Managementin Agriculture, released by theInternational Water ManagementInstitute in 2007, noted that “thechallenge for irrigated agriculturein this century is to improve equity,reduce environmental damage,increase ecosystem services, andenhance water and landproductivity in existing and newirrigated systems.”

PRO 08-04-2012_Layout 1 4/7/2012 11:37 PM Page 2

news

Sunday, 08 April, 2012

03

LAHORE

STAFF REPORT

The government has suffered aloss of over Rs10 billion in thepast six months in the shape ofloss of Custom Duty by allow-

ing import of used cars under specialregime as over 35,000 vehicles have beenshipped into Pakistan during last 12months. Besides, the automotive partsvending industry has lost an estimatedRs25-27 billion in sales, as expectedjump in sale of locally assembled newcars was hindered by the arrival of usedcars. This was observed by the Chairmanof Pakistan Association of AutomotiveParts & Accessories Manufacturers(PAAPAM) and Business Forum of Pun-jab in a meeting held here on Friday todiscuss the repercussions of unbridleddumping of used cars in the country. hesaid the local production of cars andLCV’s have registered a massive reduc-tion of 22000-25000 owing to import ofused cars in huge volumes, also hurtingthe domestic auto parts vending industry

by a massive amount of Rs27 billion. hesaid that giving the Customs Departmentdiscretion, to further reduce applicableduties by up to 60 per cent depreciation,has literally allowed imports of used carsfree into Pakistan. With double digit in-terest rates, unprecedented exchangerate depreciation and unavailability ofgas and electricity, the government mustintervene to ensure that local engineeringunits do not shut down, he said. Nowprecious foreign exchange will have to bewasted on import of spare parts for theseused vehicles, which will also cause a lossto the exchequer to the tune of $50 mil-lion only in one year, he estimated. In-stead of giving attention to the core issueof curtailing inflationary trend engulfingresources and endangering national in-tegrity, the government is allowing im-port of each and every thing into Pakistanto jeopardize local industry, he said.“hundreds of components such as wheelrims, tyres, batteries, radiators, mufflers,wire harness, instrument panels, steeringwheels, air conditioners, sun visors, othersheet metal parts and plastic parts, which

are produced by local vendors, will nowbe imported,” he said. he said that thevendors were directly providing jobs toalmost 200,000 skilled workers (plusover 2 million indirect work force),whofeared losing jobs if imports of used ve-hicles are continued in high numbers.

Munir K. Bana, Vice Chairman ofPAAPAM, added that the situation wasgetting out of control as allowing largevariants of models coming into Pakistanwould surely also entail huge expendi-ture of foreign exchange on spare partsimports. he said that the worst part isthat every vehicle imported is also a lostopportunity for our economy to createemployment. We are estimating a loss ofover 30,000 jobs that could have beencreated, he pointed out.

On rising prices of locally assem-bled cars, Mr. Bana said that the bestway of reducing car prices is to increaselevel of localization. he emphasized tothe government to implement Auto In-dustry Development Program (AIDP) inletter and spirit to achieve the benefitsof cost reduction.

KHARTOUM

ONLINE

The Board of Governors of the IslamicCorporation for the Insurance ofInvestment and export Credit (ICIeC),member of Islamic Development Bank

(IDB) Group, approved in its 19th AnnualMeeting, in Khartoum, Sudan, the Annual Reportand the Financial Results for 1432h (2011).The Annual Report shows that the insurancebusiness provided by ICIeC to member countries’investors and exporters stood at over US$ 3.2billion, an increase of 59% compared to 1431h(2010),while its financial results were positivedespite the increase in credit and political risksresults from the continuing global financial andeconomic difficulties. Commenting on theseresults the CeO of ICIeC, Dr. Abdel-Rahmaneltayeb Taha, said this is “ we proud that theCorporation has managed to increase its volumeof business with exceptionally low claims rationand to maintain its strong financial positionunder such difficult circumstances. ICIeC’sstrength has been underscored by the

confirmation of the Aa3 rating assigned to theCorporation for the fourth consecutive year byMoody’s Investors Service”. Dr. Taha added that they are “This growth inbusiness was as a result of the increasedawareness among exporters and banks in ourmember countries of the importance of credit andpolitical risk insurance as an affective riskmitigant, especially during these turbulent times.It is also a consequence of the responsiveness ofICIeC to the demand of its clients by introducingmore flexibility in its product offering, andoffering new products such as the “non-honoringof Sovereign Obligations” and “ContractFrustration Policies.ICIeC, the Aa3 rated multilateral credit andcountry risks insurer is a member of the IslamicDevelopment Bank (IDB) Group. It wasestablished in August 1994G as a specializedinternational institution with full juridicalpersonality with a mandate to encourage theexports of member countries and help attractforeign direct investment to them, throughproviding Sharia compliant credit and politicalrisk insurance products.

KARACHI

ONLINE

Adelegation of Bin Qasim Association ofTrade & Industry, BQATI delegationled by Mian Muhammed Ahmed, Pa-

tron In-Chief & Founder President, Mr. UsmanAhmed, President, met Muhammed Tariqhasan, Chairman KePZ during their visit toKarachi export Processing Zone, Landhi.

hassan gave detail presentation on per-formance of KePZ and infrastructure avail-able at KePZ. he informed that newindustries are coming in KePZ due to avail-able infrastructure, Zone holds great potentialfor attracting foreign and local investmentdue to facilities provided by the zone and itsunique location being adjacent to the porthaving most modern shipping facilities, weprovide best available infrastructure, roadnetwork, peace, security and other utilityservices through one window operation andindustrial land at a very cheap rates to indus-trialists—and in return—expect them to investmore in zone, create employment, give aboost to export and bring foreign exchange.

On the occasion Mr. Usman Ahmed,

President BQATI expressed that Zone hadshown growth in a period of time and ex-pressed hope that industries in the areawould invest more in future, there is alsoneed for improving infrastructure and pro-vision of utility services through one windowoperation in other industrial zones.

Main Muhammad Ahmed, Patron-In-Chief / Founder President, BQATI said that in-dustrialist are reluctant to setup their businessin Bin Qasim Industrial Zone due to energyshortage, unavailability of infrastructure andlaw and order situation, however BQATI is try-ing to serve as the bridge between trade and in-dustry and government functionaries.

he pointed out that they had faced deterio-rating law and order situation in the area lastyear; however, the situation has improved withincreased police patrolling on the National high-way. Security cameras also being installed at keylocations; liaison with Pakistan Rangers hasbeen maintained for setting up check post atPQA. Mr. Abdul Rasheed Jan Mohammed, VicePresident BQATI, Mr. Shakil Ashfaq, ChairmanLaw Committee, along with Managing Commit-tee of Bin Qasim Association of Trade & Industryand others also spoke on the occasion.

KARACHI

STAFF REPORT

ATTOCK Oil Refinery has in-creased the prices of lube base oilby Rs 7 per litre, which the lubri-

cant manufacturers apprehend, wouldresult in a sharp increase in all the lubri-cating oils. In a statement issued here,All Pakistan Lubricants ManufacturersAssociation (APLMA) Chairman MianZahid husain condemned what he said“arbitrary” act of the Refinery warningthe hike could result in increasing theprice of every brand of lubricating oil byRs 11 per litre.

Zahid said the Attock Refinery, themajor shareholder of lube base oil man-ufacturing National Refinery, has so farincreased the price by Rs 37 per litre dur-ing the last 12 months and the latest in-crease was the fourth one. “Thelubricating oil manufacturers are con-stantly being ignored by the lube base oil

manufacturer and it is raising priceswithout any consultation with the stake-holders on vague pretexts,” he allegedand asked for the government’s interven-tion to get the refinery’s decision re-versed. he said no governmentfunctionary is taking notice of the arbi-trary increases in the lube oil prices tothe woes of lubricants manufacturersand the motor vehicles owners who havebeen forced to buy expensive motor oils.

The APLMA chairman said the refin-ery was increasing prices frequently onvarious pretexts. “If this trend continuedthe lubricant manufacturers would beforced to shut down their business,” hewarned. Where, on one hand, the refin-ery was constantly increasing the pricesof lube base oil, the smuggled and spuri-ous oil was flourishing in the market onthe other hand, said Zahid.

he further pointed out that the lubeoil prices had reached to the highest levelin last two years.

ISLAMABAD

ONLINE

FeDeRAL Minister for Finance Dr.Abdul hafeez Sheikh said that the cul-ture of tax evasion is a serious issue in

Pakistan and the government is taking con-crete steps to control this menace. he ex-pressed these views while addressing aNational enforcement Dialogue on tax eva-sion in Pakistan here.

The Minister said that tax evasion is caus-ing revenue shortfall in the country and thushampering national development and publicwelfare projects and dependence on foreignloans is increasing due to this undesirablepractice. The Finance Minister also high-lighted that weak regulatory mechanism isone of the rea-sons for taxevasion asit encour-ages taxe v a d e r sresultingin ever

increasing number of people and organiza-tions starting getting involved in tax evasion.he also said that tax evasion is rampant in thecigarette industry and the government hasdecided to take practical steps to curb thispractice and FBR’s mobile teams would be-come completely operational all over thecountry from 1st may and special audit of sus-picious units would be carried out within next60 days. Joint teams of FBR’s Customs Intel-ligence and IRS would specially supervise theclearance procedure, he added. Speaking onthe occasion, Chairman FBR Mumtaz haiderRizvi rejected the impression of non-existenceof effective tax mechanism in the country. hesaid that the issue of tax evasion in the ciga-rette industry is of very serious nature and iscaused by non-compliance to the legal frame-work. he said that FBR has established a ded-icated cell in Peshawar which is doing allefforts to check production and distributionof illegal cigarettes as well as entry of smug-gled cigarettes into the country which is evi-dent from recent successful raids in KPK andSindh. The chairman FBR said that introduc-tion of special audit system to check suspi-cious tax evasion has helped a lot incountering tax evasion. Prominent economistDr. Ashfaque hassan, Member Inland revenueShahid hussain Asad, DG Customs Intelli-

gence Muhammad Riaz, Member of Parlia-ment’s Finance Committee Kashmala Tariq

and President of Supreme Court Bar As-sociation Yaseen Azad also ad-

dressed the National Dialogue.

Used cars runningover exchequerg Used cars import causes Rs10b loss to national kitty: PAAPAM

ICIEC provides $3b inExport Credit Insurance

MIRPUR

APP

TO ensure the survival of industrialstructure in AJK and establish a newindustrial zone here, the state governmentis considering to devise a plan to allocate

the required funds in the upcoming budget. Official sources told APP on Saturday that the newindustrial zone was proposed to be established onan area of 25,000 kanal of land at Mirpur-Jatlanroad, for which, the required land was beingacquired by the government. The sources continued that the government wasgiving due attention to gear up business activities inthe state where a conducive atmosphere wasalready available for this purpose. The government had also planned to provide duefacilities to the existing and intendingentrepreneurs at par with other parts of the countryto ensure speedy uplift of the industrial sector.The plan involve a network of wide roads,interrupted supply of power, water and natural gasas well as telephone facilities in new and existingindustrial estates, the sources added.

The sources further said the government was alsointending to give relief to those industrialists whohad to face huge overhead freight charges oftransportation of raw material from various parts ofthe country to their industrial units operating inAJK. The sources revealed that the government wasalso seriously contemplating the proposal ofexpanding tax holidays period for the newindustrial units to be established in the state. The amendments in existing five-year taxexemption law for the new comers in the AJKIndustrial estates would be required to be made bythe AJK Legislative Assembly, they added.The sources indicated that the government had,meanwhile, taken strong notice of the reportedincreased trend of misuse of the existing five-yeartax holidays by certain vested interest industrialconcerns operating in the Industrial estates ofMirpur and Bhimbher districts. It is pertinent to mention that several industrialistshave already closed down their industrial units afterenjoying the tax holidays on one pretext or theother or through renaming their already-basedindustrial units with the ulterior motives to enjoythe tax holidays for another five-year period.

AJK mulls over survivalof industrial structure

And now the lube base oil prices… KePZ offers incentives to woo investors

tax evaders, Dr Hafeez hashad enough of you!

g Manufacturers object as lube base oil prices surge by Rs 7 per litre

PiBC upbeat over president’s visit to india

ISLAMABAD

APP

The Pak-India Business Council(PIBC) has welcomed the forth-coming visit of President Asif Ali

Zardari to India, which will help improvebilateral relations, specially trade ties.“The President’s visit will prove to be amilestone in developing friendly rela-tions between the two countries, besidesenhancing trade and commerce ties,”Chairman Pak-India Business CouncilNoor Muhammad Kasuri told APP afterchairing a meeting of the Council here.The administrative and economic com-mittee of Pak-India Business Council de-liberated at length the trade policies ofPakistan and its efforts to promote traderelations with India and appreciated thegovernment policy in this regard. Themeeting observed that the trade policy ofthe present government was in accor-dance with the aspirations of the peopleand the business community.

PRO 08-04-2012_Layout 1 4/7/2012 11:37 PM Page 3