Arshad Ali to head FPCCI’s committee on Labour Manpower Export and Overseas Pakistanis

Syed Arshad Ali, a prominent name in the hospitality industry and a former chairman of the Pakistan Hotel Association, has been appointed as the Chairman of the FPCCI’s Standing Committee on Labour Manpower Export and Overseas Pakistanis.

Arshad Ali, Managing Director, Integrated Facilitators (Pvt) Ltd, has been assigned the responsibility by Senator Haji Ghulam Ali, President, Federation of Pakistan Chamber of Commerce & Industry (FPCCI), for the year 2011.

After discussion among coalition partners: Petroleum prices increase reduced by 50 percent

The government has agreed to reduce by 50 percent the recent increase in the petroleum prices in the country.An announcement to this effect was made by Federal Finance Minister, Dr. Abdul Hafeez Shaikh, while briefing media at the Governor House here late Thursday night.He said "after discussion among coalition partners which was held in a very cordial atmosphere, we have decided that the increase in the petroleum prices which was about 10 percent, be reduced by half, that is, five percent".Hafeez Shaikh said that because of this the government would have to bear an additional burden.

He said that in case of any reduction in the petroleum prices in the international market, the benefit of the same would also be transferred to the public.

Finance Minister said that there would also be 25 percent reduction in the allocation of petrol for government officials.Hafeez Shaikh said that a decision has been taken in principle to reduce the recent increase in the petroleum prices by 50 percent.

He said that a formal approval would be sought from the Prime minister and a notification would subsequently be issued.

Sindh Governor, Dr. Ishrat Ul Ebad Khan, said that after the increase in petroleum prices in the wake of enhancement in the price of the commodity at international level, the chief of the Muttahida Qaumi Movement (MQM), Altaf Hussain, talked to President Asif Ali Zardari, and it was considered as to how the impact of the enhancement could be minimised for the masses.

He said that President Zardari sent Finance Minister, Dr. Hafeez Shaikh, and Interior Minister, Rehman Malik, for talks with the MQM team, on how the impact of increase in petroleum prices could be minimised to provide relief to the masses.

Dr. Hafeez Shaikh said that in the past three months there was almost 26 percent increase in petroleum prices at the international level but the Government of Pakistan decided to enhance only 10 percent and had to absorb an impact of Rs five billion per month.

He stated that MQM Chief Altaf Hussain and President Asif Ali Zardari initiated a contact to try and further minimise the impact of increase of petroleum prices on the people.

Federal Finance Minister said “we decided to reduce this increase by 50 percent, that is, from 10 percent to five percent.

MQM leader Dr. Farooq Sattar, who was also present on the occasion, congratulated the people on the announcement regarding reduction in petroleum prices.

He thanked President Asif Ali Zardari, Prime Minister Syed Yousuf Raza Gilani, Finance Minister Dr. Hafeez Shaikh, and the MQM chief Altaf Hussain.

Dr. Farooq Sattar was of the view that attention be paid towards broadening the tax base.

Interior Minister, Rehman Malik, thanked the MQM leadership and Finance Minister, Dr. Abdul Hafeez Shaikh.

He said that Pakistan Peoples Party (PPP) and MQM always think for the betterment of the people and poverty alleviation.

Rehman malik also appealed to the transporters that in view of reduction in petroleum prices they should withdraw their strike call immediately.

MQM leaders Babar Ghauri, Syed Sardar Ahmed and Abbas Haider Rizvi were also present on the occasion.

Iftikhar Malik, Tariq Saeed and Jamil Magon visit Guard Auto Zone

Statement by an IMF Staff Mission on Pakistan

An International Monetary Fund (IMF) staff mission, led by Adnan Mazarei, met with the Pakistani authorities in Islamabad to continue discussions on the fifth review under Pakistan’s Stand-By Arrangement (SBA). Mr. Mazarei made the following statement at the conclusion of the mission today:

“Over the past few days, an IMF staff mission and the Pakistani authorities had constructive discussions which focused on assessing the impact of the floods on Pakistan’s economy, adjusting economic policies to respond effectively to the needs created by the floods, and on the outlook for the rest of the financial year 2010/11.1

“Progress has been made regarding the measures to be implemented in the context of the authorities’ economic stabilization and reform agenda, while protecting the poor. Specifically, we have reached broad agreement on the macroeconomic framework and a revised 2010/11 budget deficit target to help flood victims, and rein in inflation, which hurts the poor most. The authorities consider that the reformed general sales tax is essential to raise revenue to finance relief for flood victims, poverty reduction, and infrastructure reconstruction. Tax reform is also needed to make the tax system more equitable. The authorities recognize the critical importance of energy sector reform. They have initiated reforms aimed at reducing load shedding, which is severely hurting economic activity; curtailing energy subsidies in order to free up budget resources for spending in priority areas; and resolving the issue of circular debt.

“The IMF remains committed to the ongoing dialogue with the Pakistani authorities, and discussions will continue including around the Pakistan Development Forum to support Pakistan’s efforts to strengthen macroeconomic stability and growth and completing the fifth SBA review.”

SECP starts online survey on services provided by Company Registration Offices

Islamabad, July 9: Securities and Exchange Commission of Pakistan (SECP) has started an online survey on its website, entitled ‘Survey on Services provided by the Company Registration Offices’. The survey is available at http://sraposrc/secsurvey/index.php?sid=99227&lang=en

The survey is aimed at eliciting feedback and suggestions from companies, consultants and other stakeholders, on the services extended by the SECP at its eight regional offices called the Company Registration Offices (CROs). The CROs play a vital role as the front offices of the SECP having direct interface with the public. They are located in the provincial capitals and in industrial hubs of the country. They mainly function as corporate registry and are the custodian of corporate records.

Consisting of 25 simple multiple-choice questions, the survey takes only a few minutes to complete. It also includes specific questions on eServices, seeking inputs from the participants, with a view to making it more user-friendly.

The SECP encourages the users of services provided by the CROs, to share their opinions about the existing service delivery system and also to make their suggestions for future improvement. This will enable the SECP to further extend its facilitation and to provide more efficient services to the utmost satisfaction of the stakeholders.

Pakistan on path of economic recovery: IMF

Pakistan’s economic growth has started to recover despite security and energy challenges and the country met almost all targets under the International Monetary Fund program, the global financial institution said on Tuesday.

“Pakistan’s program is progressing well,” the Fund said in a statement following ‘constructive discussions’ with Pakistani officials focusing on Pakistan’s recent economic performance, the outlook for the rest of the fiscal year.

Adnan Mazarei, who met with the Pakistani officials in Dubai over the past week to initiate discussions on the fourth review under Pakistan’s Stand-By Arrangement (SBA), noted that Islamabad observed all quantitative performance criteria, except for the budget deficit target, which exceeded by a small margin.

Listing positive trends Pakistan registered in recent months, the Fund said the exchange rate has remained stable at Rs 84–85 per US dollar, and the international reserves position has strengthened (the banking system’s gross foreign exchange reserves, including the State Bank and commercial banks, reached $14.3 billion in mid-February, of this total, the State Bank held $10.5 billion).

The early signs of recovery in some sectors and the improved external position are encouraging, although there are risks and challenges to Pakistan’s economic program.

“Economic growth in Pakistan is starting to recover; large-scale manufacturing output has started to increase, the improvement in the global economy has helped manufacturing exports, and private sector credit growth has picked up to some extent as businesses rebuild their working capital.

The IMF’s package for Pakistan - approved in November 2008- has been extended to $11.3 billion. Looking ahead, the IMF statement said, a resumption of higher growth is needed to raise living standards and will require improvements in the business climate to stimulate higher investment by local and foreign investors.

Emphasizing the need for stepped up donors support for the key anti-terror partner of the international community, the Fund said, early disbursement of donor financing remains crucial to support Pakistan’s stabilisation and reform efforts as well as laying the basis for a sustainable growth.

The IMF mission staff will prepare a report on the fourth review under Pakistan’s SBA, which is scheduled for consideration by the IMF Executive Board in late March.

Annual General Meeting of Pak German Business Forum

The annual general meeting of the Pakistan German Business Forum (PGBF) was held with the agenda of holding the election for a new Board. An announcement here said that the outgoing President, Salahud Din Ahmed, presented the annual report and welcomed the old and new members.

It said that the elections conducted under the supervision of Syed Khurshid Pervez in a very peaceful atmosphere.

The new board consists of Saifuddin Zumkawala of M/s. Allanz EFU insurance, Qazi Sajid Ali of BASF, Masud Akhtar of KSB Pumps, Abdul Baqay Khan of Merck Pakistan, Syed Nadeem Ali Kazmi of Siemens Pakistan, Razzak H.M. Bengali of Baluchistan Wheels Limited, Dr. Islam Hamid of Delta Pharma, Wasim Mirza of Pakistan Specialty Chemicals, Noordin Karim of Shermah Enterprises, Salahud Din Ahmed of Universal Business Equipment, Mian Abrar Ahmed of Cuckoo Industries and Khawaja Jahanzeb of Zeb Travels.

After the election proceedings, the newly elected Board members unanimously elected Saifuddin Zumkawala and Razak Bangali, as President and Vice President respectively.

Saifuddin Zumkawala thanked all the members for their confidence reposed in him and stated that he will try his level best to promote the affairs and aims/objectives more vividly of PGBF amongst in the country and internationally as well.

28/12 VICTIMS TO GET RELIEF CHEQUES FROM THIS MONTH; SHOPKEEPERS WILL NOT BE VACATED FROM THEIR OLD PREMISES; KARACHI AFFECTED MARKETS RELIEF COMMITT

First Meeting of Government of Sindh’s constituted “Karachi Affected Markets Relief Committee” for the rehabilitation and relief of victims of 28-December, 2009 tragic incident, was held under the Chairmanship of Committee and Advisor to Chief Minsiter Sindh for Investment, Muhammad Zubair Motiwala on January 8, 2010, wherein Chairman Businessmen Group & former President-KCCI, Siraj Kassam Teli, District Coordination Officer- City District Government, Javed Hanif, Additional Secretary Finance – Govt of Sindh, Saeed Ahmed Awan, Special Secretary Finance – Govt of Sindh, Najmus Saqib, President-KCCI, Abdul Majid Haji Muhammad, former President-KCCI, A.Q. Khalil and President, All Pakistan Memon Federation, Ahmed Chinoy also participated.

The House condemned and expressed sorrow on the tragic incident and reiterated the intent that the rehabilitation and relief to the victims will be extended on emergency-basis and it would be ensured that payment of claims would start for disbursement from current month. For this purpose, all the victims were asked to submit their claims through the platform of Karachi Chamber of Commerce & Industry by January 20, 2010, afterwards no claim will be received for assessment/ evaluation and processing. It is pertinent to mention that claim forms for City District Government Karachi and other institutions will also be submitted at KCCI where all the data will be amassed and accumulated for scrutiny in the presence of empowered and authorized representatives of the affected markets.

Committee with consensus agreed with the modus operandi suggested by KCCI and decided that after initial assessment of all claims; payments for disbursement to victims will be commenced from current month for claims being scrutinized (analysed/ assessed, evaluated and processed) in all aspects. Committee asked all the victims to submit their claims with entire responsibility and honesty. If any affected shopkeeper, in hesitation, has submitted wrong claim, he will also be given opportunity to correct the already presented claim and resubmit by January 20, 2010. Committee with consensus agreed that all affected markets which are already collapsed and those shall be demolished as declared dangerous by Karachi Building Control Authority will be reconstructed and repaired by City District Government Karachi. Similarly, all shopkeepers, Office and Godown holders in the said buildings, will be provided with same covered area space and they will not be evacuated from the old premise under their use. In this regard, KCCI, representatives of authorized affected markets, construction experts will give recommendations. Subsequently, it is requested to all affectees to extend their complete cooperation to the Committee. The Committee appreciated the decision of City District Government, especially Nazim-Karachi, Syed Mustafa Kamal whereby they announced for repair of affected buildings by CDGK. Next meeting of the Committee will be held on January 22, 2010.

OGDCL wins 6th Annual Environment Excellent Award

Oil and Gas Development Company Limited (OGDCL) has won 6th Annual Environment Excellent Award 2009 on the basis of best environmental track record, services and performance.
Federal Minister for Environment Hameedullah Jan Afridi gave away the award to Managing Director, OGDCL at a function held at Karachi.
This is second time that the state-run Company has bagged this award, the first being in 2007.
This award instituted by NEFEH with support of United Nations Environment Program and Federation of Pakistan Chambers of Commerce and Industry.
The ceremony was attended by government officials, corporate, environmentalists, experts, civil society and media. The Minister said the OGDCL has maintained its position as a key provider of safe energy through indigenous sources by observing highest standards of Health, Safety and Environment in compliance with statutory regulations. Affirming its stand as an environmentally responsible Exploration and Production (E&P) organization, the OGDCL won the Annual Environment

KCCI urges registration to safeguard exports

KARACHI: Anjum Nisar, President, Karachi Chamber of Commerce & Industry, in a letter to Suleman Ghani, Federal Secretary, Ministry of Commerce urged for registration of geographical indications (GIs) as Certification Marks by the competent authority.
He drew the Ministry’s attention towards the promulgation of Geographical Indications (GIs) Law, and establishment of GI registry in Pakistan.
In the relevant context, while highlighting that India had previously promulgated GI Law & has established GI registry, he lamented that India had already registered and notified Pakistani well known variety of “Super Basmati” as their own variety of rice.
Besides, many other products / produces were under registration process and may claim internationally these as their own products.
He focused that in Pakistan draft Bill on GIs was still awaited to be promulgated and implemented though it was already approved by the stakeholders, meetings called by the Intellectual Property Organization (IPO).

Petrol, gas and electricity subsidy to end: Shaukat Tarin

KARACHI: Finance Advisor, Shaukat Tarin has said that a decision for putting an end to the subsidy on petrol, gas and electricity has been taken.
Addressing a seminar on ‘IMF role in Pakistan economy’ under the aegis of Institute of Business Administration (IBA), the finance advisor said that the government was facing economic challenges.
He said that the current fiscal year revenue recoveries would amount to Rs1180bn, but yet the recoveries have been crucial problem for the govt and this was the reason that the prices of petroleum products were not reduced.
Shaukat Tarin said that serious notice has been taken of the FBR harassing consumers. He said that the focus for the next year would be to revive the economy after stabilization. He pointed out that attention would also be paid towards the revenue generation. He explained that the tax would not be increased and instead efforts would be made to expand the tax net. This would be carried out administratively and also on the policy basis.
He said that Pakistan’s three national enterprise—Pakistan Steel, Railway and PIA were cumulatively incurring losses of over Rs200 billion annually.
He said that relief would be given to the middle class in the upcoming budget, while the new National Financial Award (NFC) would be presented with the consensus of the four provinces.

STRIKES, HOLIDAYS, POWER BREAKDOWNS

Traders demand Karachi be declared as ‘calamity-hit’ city

KARACHI: All Pakistan Organization of Small Traders and Cottage Industries has demanded of government to give a tax exemption to the traders of Karachi for two years by declaring Karachi a disaster-hit area to compensate huge loss of traders owing frequent strikes, holidays and prolonged load-shedding.
APOSTCI Karachi chapter president Mehmood Hamid, Vice Presidents Ansar Baig Qadri, Abdul Majid and Usman Sharif said traders bear a loss of Rs140 million due to one-day strike in Karachi.
They said 12 to 14 hours of load-shedding have not allowed them to properly run their business even on normal days. Load-shedding is worsening with every passing day in Karachi and people have now become psycho patients, they said.
Traders are facing sever losses, business centers are closed and citizens cannot have a proper sleep in night due to frequent and prolong outages of electricity by the KESC.
They said all appeals for ending load shedding have fallen on deaf ear and in the current situation Karachi traders are not able to pay their taxes; therefore, a two-year tax holiday be given to them by declaring Karachi a calamity-hit area.

Karachi strike cripples trade activities

KARACHI: The continuous wave of terror and violence has badly affected economic activities in the city causing losses of billions of rupees to the traders, Daily Times found out on Saturday.

Violence in the city, which started from Friday night paralysed the whole city and even affected the interior province as well. Fears of further deterioration in the city halted business activities.

Chairman North Karachi Association of Trade and Industry (NKATI) Younus Khamisani while talking to Daily Times said that a city from where 80 percent of exports of various products are made and generate about 70 percent of the country’s total revenue should not be left at the mercy of political groups.

“It seems that the government has no interest in the city’s problems and has left its traders’ community helpless,” he complained and said that the Sindh government is doing nothing to ensure peaceful businesses environment for a better economy.

He said that NKATI has almost 2,000 industrial units that were badly affected by the strike, as less than 40 percent labour and workers could reach factories and the industrial zone had to suffer a loss of Rs 350 million to Rs 400 million on account of the strike.

“This was a total unexpected strike which not only hit the economic activities of the city, but largely affected that of interior Sindh as well,” member of managing committee of Korangi Association of Trade and Industry (KATI) Tariq Malik said. He said that KATI remained paralysed during the whole day, as 70 percent workers were not able to reach their industrial units and the industrial zone had to face substantial losses in terms of production.

President Karachi Chamber of Commerce and Industry Anjum Nisar said that this was the 10th day since July 1, 2008 that the economic activities in the city remained paralysed, and no production was observed during these days in the city.

He said that since July 2008 the country has faced a loss of about Rs 18 billion on account of taxes to the federal government, however almost Rs 25 billion to Rs 30 billion losses were reported in terms of production losses only from Karachi during these days.

Many traders face severe problems of supplying their consignments due to unavailability of transport and absence of peace in the city, besides rampant electricity load shedding has crippled the industrial production, he said.

A single day closure inflicts billions of rupees losses on the country’s exchequer, he said, adding that the country cannot afford such an unserious attitude towards trade and industry. He also criticised the government for not taking appropriate measures to ensure uninterrupted power supply to industries and residents of the city.

Chairman of Alliance of Markets Association (AMA), Muhammad Atiq Mir said that only stable political government could resolve the country’s problems, while the PPP-led government has proved a failure since forming the government.

About 25-30 percent of retrenchment has taken place in small markets in the wake of declining trade activities because of the government’s unfriendly business approach from the first day in the office, he said, adding that any rise in unemployment is likely to further collapse the existing peace in the country.

TDAP recommends PTA to boost exports

KARACHI: Trade Development Authority of Pakistan (TDAP) has recommended the government to enter into preferential trade agreements (PTAs) with other countries to get better access in their markets.
The recommendations approved by the Committee III of Federal Export Promotion Board (FEPB) will be sent to the government for inclusion in the next meeting of the FEPB headed by the Prime Minister of Pakistan.
The meeting was chaired by the Chief Executive, TDAP Syed Mohibullah Shah and attended by the representatives of various trade associations from parts of the country. They gave their suggestions for increasing market share of Pakistan exports in traditional and non-traditional markets.
The committee also suggested the government to continue to seek access to the major markets of the USA and European Union.
The committee recommended to sensitize Pakistani diplomats and commercial officers to the importance of export promotion and trade development issues.
It was also felt that commercial officers should spend two years at TDAP on completion of their foreign postings so that our business people and exporters can benefit from their experience of foreign markets.
The committee felt that some of the important sectors with great export potential like agro-food, minerals and human services should receive much larger credit allocation from banking sector as well as export finance so their potential could be developed and the country could benefit from their increased exports. —APP

Businessmen to file petition against NEPRA & KESC

KARACHI: The businessmen community will file a petition in Sindh High Court against National Electric Power Regulatory Authority (NEPRA) and Karachi Electric Supply Corporation (KESC) for their unjust tariff.

The petition will be moved by small traders, industrialist, SME’s and citizens of Karachi, this was decided in a meeting at Federation of Pakistan Chambers of Commerce and Industry (FPCCI), a statement said on Tuesday.

On this occasion, Helpline Trust, Karachi arranged a presentation at FPCCI on the traders anxiety regarding acute shortage of electricity and long hours load-shedding, which has not only left the small industry gasping for breath, but also created a sense of uncertainty in the job market and has badly hurt the businesses of small traders, industrialist, SME’s and citizens of Karachi.

Zakaria Usman, Vice President FPCCI chaired the meeting and has showed great agony over the severe shortage of electricity and withdrawal of subsidy on GST on electric charges, which have spiked the cost of production and resulted in widespread closures of small businesses and job losses.

He emphasised that lack of direction among policy makers is making things worse. He urged the government to reduce power tariffs to pass on the impact to consumers and to instruct KESC to cut down load shedding. He strongly drew the attention of the Government to this important area, which needs immediate review and urgent solution, before it is too late and the small traders loose their patience and come to street and create law and order problem.

He made it clear that the FPCCI cannot be a petitioner, but would provide all assistance if the above petition is filed, and we will continue dialogue with the government and KESC, for removing miseries of consumers of KESC.

Asghar Morawala gave details of steps taken by their committee members in regard to increase in KESC tariff, since October 2008. Zakaria Usman announced a committee who will take technicalities and then recommend with in week, and then Justice (R) Shaiq Usmani will prepare draft of petition, which will be again discussed in the FPCCI, and decision would be implemented.

FBR plans to stop tax evasion from wholesale, retail stores

By Muhammad Yasir

KARACHI: The Federal Board of Revenue (FBR) has planned to initiate measures to curb tax evasion from various wholesale and retail stores in major cities of the country, official sources said on Monday.

Sources said that the revenue department has intended to install its own electronic registration system at the counter machines of wholesale and retail outlets of different international and local stores aimed at creating direct taxes from the sector.

The revenue authority, in the beginning of this fiscal year, asked all such stores including groceries and departmental, medicine and healthcare, cosmetics and toiletries, shoes and clothing to set up electronic registration system to sum up their sales so that their income tax could be measured according to the record of digitals machines. However, a significant number of wholesale and retail outlets have not installed electronic price counters or information systems so far and continued to maintain their sales record manually.

Besides, tax official said, the federal revenue collection authority is not satisfied with the collection of income taxes from these wholesale and retail outlets made through existing electronic machines.

Taxmen added that the board would also plan to check sales records of their suspended machines on weekly and daily basis in order to monitor the records of the wholesale and retail shops.

Tax officials were of the view that the revenue collection authorities would take every possible measure to generate taxes from its potential taxpayers’ sectors, and the wholesalers and retailers’ sector is one of them where a handsome tax could be generated by minimising or stopping tax evasion.

The tax department has to achieve tax-to-GDP ratio at 10.2 percent as per International Monetary Fund (IMF) conditions by the end of fiscal year 2008-09, which were recorded at 9.5 percent in 2007-08.

FBR has met a shortfall of Rs 53.48 billion in federal tax collection during the first seven months of the current fiscal year 2008-09. In line with the upward revised tax collection target of Rs 1.360 trillion, FBR is chasing a target of Rs 681.7 billion, however, provisional collection has amounted to Rs 628.22 billion only.

IMF has expressed concern over the revenue collection growth of the country that was predicted to miss the annual financial year’s target, besides other macro-economic targets of the country including GDP growth rate, inflation, tax collection, foreign direct investment, privatisation proceeds and export and import targets. (DT)

RBS up for sale in Pakistan

By By Saad Hasan

KARACHI: As the Royal Bank of Scotland (RBS) on Thursday announced the worst financial loss in British history its office here disclosed the operations in Pakistan are being sold.

In a statement released to the Karachi Stock Exchange (KSE), the bank said there are potential buyers who have expressed interest in its business, which includes the retail and commercial banking segments.

“Current capital constraints on the RBS Group and the need for RBS to reduce the size of its balance sheet means it is unable to provide the investment the business in Pakistan requires to achieve its growth potential,” it said.

The bank neither divulged any details pertaining to potential buyers nor did it say anything about the fate of its employees here.

The RBS exit comes at a time when it was in the process of reorganising the business of ABN AMRO, which it bought at peak of the global financial crisis in 2007.

There were doubts when it started re-branding the 80 branches of ABN AMRO in Pakistan amid deteriorating economic and political situation, industry people say.

“It is only logical for RBS to give up operations in Pakistan,” said an official of another multinational bank. “They came because this country was part of the deal. RBS decision is caused by global reasons but the situation here will make head office of any multinational bank sceptical.”

Economic decline will further pull down profit growth of the banking industry this year and next, as people borrow and deposit less in banks, a banking analyst said.

“Banks are parking their funds in treasury bills as they fear rise in non-performing loans and cut back on lending,” said Farhan Rizvi, an analyst with JS Research. “Industry is in a consolidation phase and there will be mergers and takeovers this year.”

But, he said, it is unlikely that a new foreign bank will come forward to buy RBS in Pakistan at a time when there is financial turmoil in international markets.

And, he said any consortium formed locally to take over RBS would have to be very strong financially. “We are talking about 80-plus branches and over Rs112 billion in assets.”

The chances of RBS being purchased by any foreign bank, which is already operating in Pakistan, are also slim, said A B. Shahid, a banker and commentator.

“With the prevailing political instability and security concerns, it is very unlikely,” he said. “It is unfortunate the turmoil continues and our politicians aren’t able to see the severity of the situation.”

While their role as financial intermediaries is limited, industry people say, foreign banks have brought modern banking practices and products to Pakistan.

Pakistan Can Export Ample Milk To Malaysia

KUALA LUMPUR, Feb 25 (Bernama)-- Pakistan, one of the world's largest milk producers, will be able to meet Malaysia's need for milk as it produces more than 34 million tonnes annually, the Pakistan High Commission's commerce counsellor, Majid Qureshi, said today.

The imported milk could either be fresh or in powdered form, he told Bernama on the sidelines of the Business Leaders Meetings in conjunction with the D8 Ministers' Meeting on Food Security conference here today.

Currently, Malaysia imports about eight million tonnes of milk and milk powder annually from other countries, particularly New Zealand and Australia.

Qureshi said Malaysian companies with technical expertise and funds could invest in Pakistan to further develop the sector.

He also said that Pakistan would be able to provide ample Halal meat to Malaysia.

Pakistan, he said, had a huge land bank and cattle heads and manpower to meet the potential needs of Malaysian investors and entreprenuers.

As of last year, Pakistan had 144 million head of cattle, sheep, goats, baffaloes and camels.

He suggested that Malaysians interested in running animal husbandry farms so in Pakistan as the government was very supportive of such ventures.

It provided several incentives such as tax breaks, one-stop approval centre and fast approval and guaranteed protection of investment by an act of parliament, he said.

Business community of Great Britain urged to invest in Pakistan

The UK business community has been urged to invest in various promising projects in Pakistan offering high margin profitability and returns.

Speaking at a dinner hosted by UK-Pakistan Chamber of Commerce and Industry in Southall, west London, on Friday, Pakistan High Commissioner to Britain Wajid Shamsul Hasan said the south Asian country is ideally located for export-oriented industries and businesses.

Some of the projects he identified with potential growth and high returns include alternative energy, housing sector, roads building, surgical and sports goods, food processing, gems and jewellery.

The High Commissioner said Pakistan has in place well-established infrastructure and legal systems which are important to attract investment. This include rail and sea links, good quality telecommunications and IT services, modern company laws and long standing corporate culture.

Pointing out that Pakistan currently is an energy deficient country, he said the UK-based Pakistan business community has golden opportunity to either go for joint ventures with their Pakistan-based companies or can wholly establish projects in alternative energy sector such as wind farming, solar and hydro fields.

“You can also participate in housing industry as the Government is keen to provide the people with the low-cost houses whose construction also benefit related vending industry,” he said.

Hasan said poverty can be addressed by generating jobs opportunities through industrialisation and added that for the export-oriented industries and businesses, the Government has established a number of Export Processing Zones in the country with special incentives.

He praised officials of UKPCCI for taking keen interest in the progress and development of their motherland and in enhancing the trade ties between Pakistan and the UK.

The outgoing UKPCCI President Sami ullah spoke of his visit to Expo 2008 in Karachi and said the event provided good opportunity for the UK business delegation to explore business opportunities in Pakistan.

He said apart from potential opportunities in alternative energy sources, food is another area where business prospects are good in term of investing in new technology to boost wheat and other major crop production.

Sami ullah said Pakistan needs to re-group or re-organise to achieve the previous position when the country was exporting wheat but is now importing the commodity.

“Textile sector, food business, carpets, electronics, rice, surgical instruments and hospital supplies, herbal medicines, gems and stones are areas where I would urge all our members to take interest to find potential partners or invest on their own.”

He spoke of his meeting in Lahore with UK Trade and Development Office representative, running overseas market introduction service which undertake market analysis, feasibility reports on products and services and offer services related to market entry strategies.

Sami ullah praised the co-operation of Commercial Secretary Saira Najeeb and Commercial Counsel in Manchester Hamid Ali for their sound advice and building business links with the two countries.

In response to questions from the members of UKPCCI, the High Commissioner said the peace deal in Swat will lead to positive impact in the general situation in the country.

He said the spirit of consensus seen in the course of the Senate elections among the various parties is a good omen which will lead to further consolidation of democracy in the country.

Referring to the objections on high interest rate, the High Commissioner said their concerns will be passed on to the relevant authorities in Pakistan.

He further said the Government is seized of the matter regarding land mafia and has initiated steps to protect investments in property by the overseas Pakistanis.

UKPCCI Director and member, Punjab Assembly, Dr.Ashraf Chohan, informed the guests that he is introducing a private member bill for establishing special courts and a police force to deal with the curse of land mafia in the province.

Director Muzaffar Chaudhry and Secretary Naheed Randhawa spoke on the occasion.

Over 217 pc more sales tax recovered on petroleum products

KARACHI: Over 217 percent more sales taxes on petroleum products during the current fiscal year July-September were recovered as compared to the same period previous year.

Federal Board of Revenue (FBR) released first quarterly report said that over 203 percent more sales taxes were recovered in July 2008 as compared to July, 2007, while in August 199 percent and in September over 246 percent more sales taxes were recovered.

During the period under review, 167 percent more revenues were recovered on account of sales tax on the use of electricity as against 24 percent in sales tax recovery on gas.

According to the data available, sales recovery on cigarettes remained up by 31 percent, telecommunication by 4.5 percent, cement by 3.3 percent, tin canned items over 63 percent, while sales tax on steel products dropped by 64 percent.