Pakistan Business information platform

NLC proving counterproductive for economy: PIFFA

2010-07-27T02:18:00.000-07:00

News Paper: Business Reorder

KARACHI (July 27 2010): Pakistan is losing revenue because of an increased involvement of the National Logistic Cell (NLC) in the freight forwarding activities at the Afghan Transit Trade (ATT), said Chairman Pakistan International Freight Forwarders Association (PIFFA) Tariq Mehmood Chaudhry.

Addressing a press conference on Monday he said, though around 35 percent of cargo of the ATT has already been diverted from Pakistan to other countries/routes because of delaying transportation tactics and an unfriendly bureaucratic system, the unfair and monopolistic role of the NLC in the freight forwarding activities would also cause more diversions of trade from the ATT.

Tariq said the role of the NLC as a transporter for the non-commercial cargo in transit to Afghanistan, as mentioned in CGO 12/2002 Para 31 (viii), was against the freedom of business rules. He said the role of the NLC was against the law of fair/transparent business ethics and also the basic rights of individuals as per the constitution.

The involvement of the NLC has resulted in diversion of considerable business to other foreign competitors via other international routes, resulting in substantial loss to the national economy in the form of foreign exchange, and a loss to the affiliated businesses and also the national tax network, he added.

"At present the NLC is charging fees/commission 15 percent with 2 percent net on their self prescribed rates for destinations in Afghanistan (not being the function of the NLC) to issue NOC for the cargo/goods to be transshipped/transit, since the NLC does not have its self owned vehicles for this Afghan transit sector, the client has to arrange and pay to the transporter from the open market, thus this fees/commission is a substantial addition to the actual transport cost," said Tariq.

Besides, he said, all the risks, responsibilities, rules, regulation has to be borne by the agent/holder of the NOC, and the NLC does not take any responsibility for any risk or liability to the cargo, despite collecting their above mentioned charges. Since the last three months, the chairman PIFFA said, the NLC's dry port office in Karachi was trying to monopolise its role in this business by issuing various notifications/policy etc from time to time.

Appointing HMT contractors with a self prescribed higher transport rates as compared to the prevailing market rates and that too for a fixed period, and the fixing of rates for the destinations in Afghanistan, is not their jurisdiction, he added. For the clients, according to the chairman PIFFA, the proposed rates would be higher than the HMT contractor rates, thus it is estimated that the net result, for the client/customer, would be that the cost of transport would be 70 percent more than the present market rates.

"The 100 percent advance payment for a destination in Afghanistan to be submitted to the NLC for obtaining the NOC, we are paid by our clients a maximum advance of 50 percent; secondly it would also create a problem for us to send foreign exchange remittances to the service providers in Afghanistan, in case if we receive 100 percent advance from our principal," added the chairman PIFFA.

While demanding the concerned authorities to take notice of the issue, he said, the role of the NLC should be restricted as a regulator to ensure safe and efficient transport for the Afghan transit trade. Besides the NOC's should be issued in all categories ie commercial, US Army, Isaf/Nato, oversize cargo etc, in order to save time and money.

In reply to a query that whether the association would do if the demands were not met, Convenor of PIFFA Standing Committee on "Afghan Transit Trade" Yawar Badar said the PIFFA would got to the courts if the issue was not resolved. To a question he said the country was generating $40 to 50 million through ATT with the shipment of around 8 thousand containers a month carrying the goods worth $2000 to $3000 per container.

-www.brecorder.com

PQA launches new user-friendly website

2010-07-27T02:17:00.000-07:00

News Paper: Business Reorder

KARACHI (July 27 2010): Port Qasim Authority (PQA) has successfully launched a new user-friendly website, www.pga.gov.pk, on July 12, 2010, said a press release issued on Monday. Besides, portraying daily updates on shipping activities, cargo handling and current advertisements released by the port, the website reflects useful information regarding news/events, industrial land and various procedures, rules and regulations applicable in Port Qasim, which could conveniently be accessed by users.

Successful launching of the website would help improve transparency and optimise efficiency in the port. It is, therefore, a significant step towards automation and e-governance in Port Qasim Authority.

-www.brecorder.com

18th Amendment, 7th NFC Award: Punjab has acted like big brother: speaker

2010-07-23T09:46:00.000-07:00

News Paper: Business Recorder

LAHORE (July 23 2010): Speaker Punjab Assembly Rana Muhammad Iqbal on Thursday said Punjab played the role of elder brother in the passage of the 18th Amendment from the National Assembly and in finalising the 7th National Finance Commission Award. He was addressing the briefing session, titled "Impact of the 18th Amendment and the 7th NFC Award on the Federation-Provinces relations," arranged by Pakistan Institute of Legislative Development And Transparency (Pildat) to brief lawmakers.

While appreciating the role of PML (N), Iqbal said Muslim League played an important role in finalising the recommendations of 18th Amendment. He said now it is the duty of the parliamentarians that they will play their role, which is necessary for the complete implementation of the recommendations of the 7th NFC Award.

He said 18th constitutional amendment and 7th National Finance Commission (NFC) Award would help strengthen Pakistan's democratic system. In a briefing session Senator S M Zafar said federal government was bearing Rs 852 billion budget deficit after transferring a major chunk of amount to provinces under 7th NFC Award.

Zafar said the government would also discuss hydropower projects with provinces as narrated in the 18th Amendment recommendations. He said the concurrent list had been abolished in 18th Amendment enhancing responsibilities of the provinces. Former Finance Minister Sartaj Aziz said provinces now would have to maintain their fiscal discipline by utilising resources provided by the federal government under 18th Amendment.

He said the proper utilisation of funds to serve the masses would strengthen government-mass connection. Former Punjab governor Shahid Hamid appreciated the job done by the constitutional committee members who finalised recommendations in total 77 meeting. Earlier, the federal government's consultant on financial management, Nauman Ishtiaq gave a presentation on the 7th NFC Award while Pildat Executive Director Ahmad Bilal Mehboob highlighted the importance of 18th Amendment and 7th NFC Award in the country's development.
-www.brecorder.com

Low savings and high debt stock constraining investment: Hafeez briefs Prime Minister

2010-07-23T09:45:00.000-07:00

News Paper: Business Recorder

ISLAMABAD (July 23 2010): The Ministry of Finance on Thursday informed the government that low domestic savings and high debt stock have been constraining the medium-term investment, sources told Business Recorder. Sources said Finance Minister Dr Abdul Hafeez Sheikh informed Prime Minister Syed Yousuf Raza Gilani that without domestic resource investment would not take off and consequently shun the prospects of growth.

This will increase the vulnerability of economy to shocks, he said, adding that growth outlook would depend on resource mobilisation and expenditure management. The Prime Minister was also apprised that global commodity prices, adjustment in energy prices, steep increase in wheat support price and government borrowing for budgetary support are major factors causing inflationary pressure.

The Prime Minister held a meeting with the Finance Minister to discuss overall economic situation ahead of chairing a high level meeting on rehabilitation of people affected by Hunza Lake. The Prime Minister said the focus of economic management should be on protecting the economic recovery, checking rise in prices and ensuring that benefits of better economic management are delivered to the citizens across the board.

Gilani stressed the need for focusing on completion of on-going projects instead of spending funds on too many schemes, which do not have maximum impact in terms of common man weal. He reiterated that the Ministry of Finance should act as a role model for other ministries and provincial governments in austerity drive.

The Finance Minister briefed the Prime Minister on the progress made in pursuing the budgetary targets, efforts for revenue mobilisation, fiscal austerity measures and rationalisation of government public sector development programme. The Finance Minister is said to have briefed the Prime Minister about talks he recently held with the International Monetary Fund (IMF) for review of Pakistan economy for release of next tranche by the Fund
-www.brecorder.com

'Gilgit-Baltistan budget to be released soon'

2010-07-23T09:44:00.000-07:00

News Paper: Business Recorder

HUNZA (July 23 2010): Finance Minister Gilgit-Baltistan (GB) Muhammad Ali Akhtar on Thursday said the budget, for the region, would be released by the end of this month or in the first week of August. In a telephonic conversation with APP he said the GB government is in touch with the federal government in this regard, adding, once the budget is released, all the development projects, halted due to lack of funds, would be resumed.

"The contractors are complaining about the deficiency of funds, however, they should wait some time as the funds will be released soon by the federal government," he added. Some sections of society are trying to politicise the issue by issuing false statements, but they would not be able to succeed in their designs, he said.
-www.brecorder.com

$21.5 billion export target for 2010-11 likely

2010-07-23T09:43:00.000-07:00

News Paper: Business Recorder

ISLAMABAD (July 23 2010): Commerce Ministry is expected to set $21.5 billion export target in Trade Policy 2010-11, to be announced shortly, well-informed sources told Business Recorder. Before the federal cabinet's approval, the Commerce Ministry will give a presentation to Prime Minister Syed Yousuf Raza Gilani on the fine-tuned proposals which have been submitted by various stakeholders.

Country's exports fetched $19.382 billion in 2009-10 as compared to $17.688 billion the year before, showing an increase of 9.58 percent despite an economic slowdown across the world. The sources said a number of measures are being proposed in the Trade Policy to encourage exporters who were deprived of announced incentives in Trade Policy 2009-10.

Commerce Ministry is accusing Finance Ministry of not providing the earmarked funds for the Strategic Trade Policy Framework (STPF) which were critical to implement the plan in letter and spirit. "We have not been paid even a single rupee by the Finance Ministry to implement the policy despite hectic efforts," claimed one of the top officials of Commerce Ministry.

The sources said that the then Finance Minister, Shaukat Tarin, had agreed to release Rs 2.5 billion to the Commerce Ministry to implement the initiatives launched in the STPF, but nothing had been released to date. Last year, a Commerce Ministry announced STPF with a hope that it would enable country's industry to compete effectively through a set of integrated and holistic policy measures in the international market.

According to sources, the government will impose a ban on the open import of cigarette making paper by inserting a new clause in the import policy order, with the objective of discouraging misuse by either packing cigarettes produced by unauthorised manufacturers or packing substandard products under the garb of international brands.

The sources revealed that battery manufacturers in the country import exhausted batteries of automobiles to retrieve lead which forms 55% of a battery. This lead is re-used in the manufacturing of batteries after a re-melting process. Plastic container of waste batteries is also recycled which forms 15% of the battery. The remaining 30% is total waste, the disposal of which requires treatment to safeguard the biotech environment.

The following regulation is therefore being considered in the Trade Policy: "Importable by industrial consumers only for their own use subject to the condition that he shall furnish to customs authorities". A certificate from Environmental Protection Agency (EPA) is also being made mandatory which will state that the importer has adequate manufacturing facility capable of handling hazardous wastes in accordance with the provision of Basel Convention to Ministry of Environment; and

The new Trade Policy will specify that permission/authorisation specifying quantitative entitlement for the import of waste and scrap of electric accumulators issued by the Ministry of Environment would be required. A recent report in the international and national media pointed out that the colours used in the manufacture of toys contain lead above the permissible limits which is posing a potential hazard to the safety of children under 3 years of age.

Use of recycled material and unsafe designs are also hazardous. In order to regulate the import of toys for infants under international standards a certification from the exporting country that colours used in the manufacturing of toys are free from hazardous toxic elements may be made mandatory. Toys will be imported subject to the certification from the relevant government agency of exporting country that the toys have not been manufactured from recycled material and are free from hazardous toxic elements.

The sources said Commerce Ministry also plans to amend the existing import conditions for CKD kits to the extent that CKD components can only be imported by assemblers for models approved by EDB only. The certificate of registration for assemblers would be required, which the new Trade Policy deals with through the following insertion: "importable only by assemblers registered with Engineering Development Board (EDB) for such models as mentioned on the certificate of registration issued by the Board."

Old and used spraying/sprinkle lorries under PCT Code 8705.90000 having different makes and models such as Hino, Mazda, Nissan etc are being imported as multipurpose chassis fitted with water tank and detachable power sprayer (comprising of engine, spray, pump, hose 50 meter and spraying gun). These lorries are importable under para 10(iv) of Appendix-C of Import Policy Order 2009-10) irrespective of their age or any other restrictions. The facility is reportedly misused as instead of using these vehicles as spraying/ sprinkle lorries, the mounted tanks and other spraying accessories etc are removed once they arrive in the country and the same are sold in the open market to be used as trucks.

The ministry is recommending that it should be allowed to specify the criteria on the following lines: (i) impose conditions on its registration so that it should be registered as sprinkler lorry; (ii) impose restrictions on transfer of registration for a period of 5 years; (iii) impose quantitative restriction after consultation with MINFA; and (iv) pre-shipment inspection by designated companies regarding Euro Ill compliance and remaining productive life of at least 5 years and in good working condition.

The following technical specifications would also be required: (a) the chassis is custom-built for the purpose of sprinkler lorry and all the sprinkling equipment's/ tools have been installed in the premises of the manufacturers of the lorry; (b) choice of pump drives: ( engine/motor driven pump operated by the driver from the vehicle's cabin; (c) Component feature: spray head - fixed at mid of the vehicle, hose pipe/hose reels, all functions controlled from the cabin by the operator; and (d) Tank construction and capacity: Tank shall having capacity 1,000 gallons or more and components made up of high strength material.

The sources further said that it has been observed during the recent past that many unscrupulous importers are indulging in the import of used lubricating, hydraulic and transformer oils, etc, as waste oils under the garb of residue of petroleum oils. These oils are unfit for use as primary products. However, after certain refining processes, these oils are re-packed and sold in local market at cheap prices under counterfeit brands. These products are covered under hazardous waste as defined in Basel Convention.

It is therefore being proposed that all types of waste oils falling under PCT codes 2710.9100 should be banned for import by including it against S. No 14 of Appendix A. In order to restrict the misuse of residue of petroleum oils falling under PCT Codes 2713.9010 and 2713.9020, it is being proposed that the import of these items may be allowed only to industrial consumers subject to certification by the Ministry of Petroleum and Natural Resources.

Motor spirit including aviation spirit, kerosene, jet fuel (JP-1, JP-4), high speed diesel oil and other fuel oil would be made "importable by approved Oil Marketing Companies (OMC) only. Pakistan shares 730 kms long, porous and unmanned border with Iran (stretching from Qilla Rabat to Jiwani) which is the 4th largest oil producing country of the world.

The above petroleum products are abundantly available at cheap rates in the bordering areas between the two countries; inhabitants of the far flung border areas having no other means of livelihood and alternative source of fuels. They are also indulging in the lucrative business of POL products' smuggling which ultimately find their way to other regions/cities of the country.

It is being proposed that POL products like motor spirit and diesel may be allowed to be imported by importers belonging to these areas from the notified routes of border point 250, Rideeq, Chidgee, Katagar and Taftan on payment of leviable duty and taxes so as to curtail the menace of POL products' smuggling, and collect legitimate government revenue."

A suitable quota, keeping in view the demand of the area in consultation with Ministry of Petroleum and Natural Resources, will be prescribed for this purpose. In order to regulate import of bullet-proof raw materials like glass, used in vehicles and buildings, it is being proposed that a new serial number should be included for any bullet-proof material (whether meant for vehicle or any other purpose) to be importable on the recommendation of Ministry of Interior.

During the budget 2010-11, classification of asphalt pavers has been corrected which may also be rectified in the IPO. With regard to weaving machines, the sources said, import of such machines is allowed from India. The spare parts of weaving machine may also be allowed to be imported from India.

The machinery parts in old/used condition falling under different PCT heading of customs tariff in chapter No 84 & 85 which are to be particularly used in the machinery which is importable in old/used condition may be excluded from the appendix-C of the import policy order.

The procedure issued by the Ministry of Commerce for import of arms and ammunition of non-prohibited bore provides for import of these weapons on the basis of import authorisation in terms of value which creates room for mis-declaration as the importers tend to import more quantity by mis-declaring value. It is being proposed that the import of these weapons may be allowed on the basis of quantity to the commercial importers as allowed to privileged individual importers.

According to sources, it has been observed that commercial importers import used cooking oil under the garb of soap stock, etc under PCT codes 1518.0000 or 1520.0090. Although, these oils are unfit for human consumption, these are subsequently supplied to small hotels, bakeries and other road-side vendors to be used in different kinds of daily use edible items. It is being proposed that in order to curb this practice all types of used edible oils imported by commercial importers should be banned for import.
-www.brecorder.com

'Volume of trade between Pakistan, South Korea needs to be enhanced'

2010-07-23T09:42:00.000-07:00

News Paper: Business Recorder

LAHORE (July 23 2010): Pakistan's Ambassador-designate to South Korea, Shaukat Ali Mukadam while expressing optimism said the volume of trade between Pakistan and South Korea is bound to increase as Korean businessmen have shown their interest in making investment in Pakistan.

While speaking at the Lahore Chamber of Commerce and Industry on Thursday, the Ambassador urged the Pakistani businessmen to concentrate on value addition as South Korea has huge potential for quality products. While identifying a number of areas for mutual co-operation, he said that there is a need for the technology transfer as both the countries have a lot to learn from each other. He said that there is a big potential in the fruit business, therefore, Pakistani business community should avail opportunities in this sector.

He said that the Koreans had learnt a lot from Pakistan in 60s and today the secret behind their progress and prosperity was the implementation of policies. He urged the LCCI to arrange a sector-specific delegation to South Korea so that Pakistani businessmen could have first hand knowledge about opportunities there. He said that Pakistan embassy would extend maximum cooperation to all business delegations.

Speaking on the occasion, the LCCI Acting President Ijaz A Mumtaz said that to create a win-win situation for both the countries, Koreans need to increase their imports of cotton, raw hides and skins, fish, medical apparatus, toys and games, leather products, articles of apparels and textile articles from Pakistan.

Most of the Korean demand for these commodities is being met by Korea from sources other than Pakistan and only a small fragment is being imported from Pakistan. A little attention by the Korean Government and businessmen can increase Pakistan's exports to Korea considerably.

He called for increase in Korean investment. He informed the ambassador that Pakistan's large market of 170 million people, its strategic location as principal gateway to the Central Asian States and other regional countries offer lot of opportunities for relocation of Korean Industries in Pakistan. Pakistan is open to Foreign Direct Investment in all the sectors. He said that although a large number of Korean companies such as LG, Samsung, Daewoo, Kia, Hyundai are doing good business in Pakistan but the volume of Korean investment in Pakistan is decreasing. It needs to be considerably increased
-www.brecorder.com

CCP introduces Voluntary Competition Compliance Code

2010-07-23T09:41:00.000-07:00

News Paper: Business Recorder

ISLAMABAD (July 23 2010): The Competition Commission of Pakistan (CCP) has approved and introduced the Voluntary Competition Compliance Code - Statements of Principles and Policy (VCCC). The VCCC has been placed on the web-site of CCP for its voluntary adoption by the undertakings.

The Commission through its in-house resources and expertise has developed the VCCC in February 2010 after in depth review of the guidelines provided in this regard by US, UK, Canada, India and Singapore. The draft VCCC - Statement of Principles and Policy was circulated amongst the members of Competition Consultative Group (CCG) in a meeting held on February 24, 2010 in Lahore, for their feedback.

The Code has been developed by CCP with the object of creating awareness among undertakings about the competition law and policy in Pakistan, to encourage compliance with the Ordinance and to prevent any violations under law. The theme of the VCCC is to make markets competitive for undertakings and consumers, by encouraging business undertakings to establish an internal framework for compliance.

It promotes a self-correcting mechanism through early detection of violations (if any). The approach taken by CCP in respect of the VCCC differs from other jurisdictions in that it provides an opportunity to undertakings for voluntary adoption of the Code as distinct from undertakings developing their own compliance code. The VCCC sets out the objective, importance and incentives for its adoption. VCCC provides an overview of the functions and powers available to CCP, the practices that are prohibited under the Ordinance and the risks associated with non-compliance with the provisions of the Ordinance. It also includes the monitoring, auditing, reporting and registration requirements.

The elements of VCCC provide for assessment of risk, establishment and implementation of compliance policy, commitment from senior management, appointment of compliance officers, training and education of employees, dissemination of compliance policy amongst employees, consequences of non-compliance by employees and evaluation of adoption and implementation of the VCCC
-www.brecorder.com

Collection of EDF should be stopped: SBF chief

2010-07-23T09:40:00.000-07:00

News Paper: Business Recorder
SIALKOT (July 23 2010): President Sialkot Businessmen Forum (SBF) Chaudhry Amjad Ali Cheema said that government was collecting Rs 4 billion as Export Development Fund (EDF) annually. Talking to reporters on Thursday here he said the concept of collecting EDF was to extend financial support to the industrial sector for enhancing export volume of the country, he said.

Amjad Cheema further said it was very unfortunate that industrial sector was not benefited of this fund and most of the fund was being mobilised on Fashion Design Institute and other such projects. The government should stop collecting EDF from the exporters because the exports were not flourishing in the country, he said.

The SBF President also urged upon the government to fix minimum export price of surgical instruments for the protection of surgical industry and issue a notification immediately for the elimination of mutual competition.

The issuance of notification would be supportive in bringing stability and edging out the possibilities of further decrease surgical instrument prices, he said. Furthermore he said the notification would also be supportive in enhancing the export-volume of surgical instruments to one billion dollar annually as well as manufacturers would get rid of mutual-extortion and exporters would be able to export surgical instruments on standard prices.

Amjad Cheema said that surgical industry was exporting 18 crore surgical instruments annually and earning 250 million dollars only adding that it was the result of mutual price war as a result of which we are not getting genuine price of our instruments in international market.
-www.brecorder.com

Banks urged to restore six-day working wee

2010-07-23T09:39:00.000-07:00

News Paper: Business Recorder

MULTAN (July 23 2010): Multan Chamber of Commerce & Industry (MCCI) has once again strongly urged banks to refrain from observing five-day working week. Malik Asrar Awan, President MCCI in a statement said observing five-day week has created many problems and has severely hampered business activities of the trading and industrial circles.

He said holy month of Ramazan is near when the timeline of commercial activities would be limited, therefore, unavailability of banking facilities on Saturdays would multiply problems. He further said a large number of complaints have been received stating that all over the world, commercial banks are closed for one day in a week, even in the countries where a five-day week is observed. Awan urged President and Prime Minister to re-notify banks to observing a six-day working week.
-www.brecorder.com

'Punjab government to promote public-private partnership in province'

2010-07-21T10:52:00.001-07:00

News Paper: Business Recorder

ISLAMABAD (July 21 2010): Secretary Commerce and Investment Punjab Fazal Abbas Maken said that Punjab government would promote the public private partnership in the province and business community would be facilitated in this regard. The concerns of the business community regarding Afghan-Pakistan Transit Trade Agreement (APTTA) would be conveyed to the Chief Minister Punjab Mian Shahbaz Sharif.

The minister said while talking to President Rawalpindi Chamber of Commerce and Industry (RCCI) Kashif Shabbir and senior executives during his visit to RCCI here on Tuesday. He said that Punjab government fully backed the public-private partnership and no stone would be left unturned in this regard.

"Punjab government did not receive the official details from the federal government regarding APTTA, therefore he is not in a position to comment about the accord," he said. Speaking on the occasion President RCCI Kashif Shabbir said that business community played vital role in national exchequer, therefore harming the interest of the said community would directly affect the national economy.

He said that RCCI fully aware of the importance of the Public Private Partnership. "Economic revolution could be brought through the said partnership," he added. Kashif Shabbir said that involvement of the educational institutes by the RCCI in research projects for the industry would benefit the business activities in the country. Commenting on the APTTA, RCCI President said that decision was made in hurry and business community was not taken into confidence. He was of the view that said agreement would badly affect the local industry.
-www.brecorder.com

New APTTA pact: no Indian goods will be allowed through land route, says Kaira

2010-07-21T10:51:00.002-07:00

News Paper: Business Recorder

ISLAMABAD (July 21 2010): Federal Minister for Information and Broadcasting Qamar Zaman Kaira on Tuesday said the Pak-Afghan transit trade agreement allowed only transport of merchandise from Afghanistan to Wagha border but no Indian goods would be allowed transit to Afghanistan via Pakistan land route.

Addressing a press conference on Tuesday, the minister said that both sides signed a Letter of Understanding in this connection. "Only a letter of understanding has been signed and MoU will be signed after approval of the Cabinet," he added. He said this understanding allowed one-way transit trade facility for Afghan goods up to Wagha border with restriction of reverse trade from India. Under this arrangement, Pakistan would allow Afghan goods export to India and Kabul would open transit facility for Pakistani goods to Central Asians States.

After evaluation of the Afghan good by custom officials at Torkham border, he said containers would be sealed and bank bonds issued which would only be returned after the goods are handed over to India at Wagha border. Kaira said this agreement was in favour of Pakistan as Afghanistan had no industries and Pakistani businessmen could export to CARs by air or using sea route.

Through this agreement price of goods would become more competitive when transported through Afghan land route, he added. During question and answer session, he said although the federation had full mandate to sign bilateral agreement with foreign countries.

However, Pakistan Muslim League (N) leader Mian Nawaz Sharif had been taken into confidence along with all the stakeholders before inking the agreement." In a recent talk between Prime Minister Yousuf Raza Gilani and Nawaz Sharif, matter of Pak Afghan transit trade and Pak-US strategic dialogue also came under discussion", he said.

He assured that the government was ready to talk with the Pak transporters so that their reservations would be addressed. He claimed that this agreement would also benefit local transporters. Replying to another question, the minister said the government always want healthy trade relationship with neighbouring India but it was not possible without settling outstanding issues like Kashmir and Siachen.

-www.brecorder.com

Transit trade agreement: government to take stakeholders on board, says Gilani

2010-07-21T10:51:00.000-07:00

News Paper: Business Recorder

ISLAMABAD (July 21 2010): Prime Minister Syed Yusuf Raza Gilani has said that government will take into confidence all the coalition partners regarding Pakistan-Afghan Transit Trade negotiations and Pakistan-US strategic dialogue. Pursuance of the reconciliatory approach, he said has strengthened the democratic process in the country and created a friction-less political milieu to pursue public welfare agenda.

The Prime Minister was talking to Dr Farooq Sattar, Minister for Overseas Pakistanis, who called on him at Prime Minister's Secretariat Tuesday afternoon. The Prime Minister, while acknowledging the contribution of millions of expatriates in the socio-economic development of Pakistan, asked the minister to evolve a unified policy for overseas Pakistanis to provide them facilities, commensurately to their sacrifices for the country.

The PM asked Dr Farooq to put a proposal for the right of vote for expatriates as well as allocation of seats in Senate and National Assembly to give representation to the overseas Pakistanis. These proposals should be discussed at appropriate forums taking all the coalition partners and stakeholders on board, he added. While discussing the issue of camel jockeys, Gilani instructed Dr Farooq to take up the issue with concerned authorities to check this abusive practice, providing relief to the affected children and their families. Earlier, Dr Farooq Sattar apprised the Prime Minister about the working of his ministry and also discussed projects taken up for the betterment of the expatriates
-www.brecorder.com

400 more locomotives needed to normalise rail operations: Bilour

2010-07-21T10:50:00.000-07:00

News Paper: Business Recorder

KARACHI (July 21 2010): Almost 400 more locomotives are needed to normalise the railway operation, which is mostly disturbed for frequent failure of engines and other technical faults. Pakistan Railways (PR) would import spare parts from China to repair almost 29 engines, which after the maintenance works would come on the tracks by the end of next month.

This was said by Ghulam Ahmed Bilour, Federal Minster for Railways while addressing a press conference here at City Station, Divisional Railway Headquarters, on Tuesday. The minister said 75 engines from China would be available here by next few years as the issue was objected by Public Procurement Regulatory Authority (PPRA).

However, this time Chinese have been told to supply better engines with removal of all previous defects. He pointed out that for supply of 75 Chinese engines an LC was opened in 2005 but it did not materialise till 2010 because of bureaucratic hurdles. He said if these engines had been supplied by 2008, our deficit would have reduced by 50 percent.

Talking about the losses in railways the minister said that the railway was faced with a deficit of Rs 90 billion which is continuously growing. The government was needed to take serious notice of the situation as even no private company was ready to bear the government body with over Rs 7 billion and Rs 14 billion in terms of pension and salaries respectively. No up gradation of the existing railway tracks was made since it was installed in 1861 by the British Government, the minister said.

Though, billions of rupees were spent on buying land for motorway from Lahore to Islamabad and from Islamabad to Peshawar, the minister said, if the same amount had been spent on upgrading the railway track, the government would not have to purchase land and the railway could have operated trains at 200 km per hour speed. "We want to make the railway stand on its own feet, but it needs resources", he said adding that he has sought a meeting with the Prime Minister to make a presentation on the current state of the railways.

Reply to query about the recent closure of six trains, he said it was part of rationalisation of railway's operational plan it would result in the availability of 17-18 locomotives which would be used for freight operation. The Federal Minister said that today railway is lifting only 10 percent of port cargo while rest is being carried by the other agencies. He referred to procurement of locomotives from China and said that although it were not of the standard of US-made locomotives, but these were purchased because of cost difference as a Chinese locomotive was being supplied for 102 million rupees and an American engine for 227 million rupees.

Replying a question Bilour said that question is not of corruption but resources and investment. He said no doubt corruption is there and our all out effort is to reduce it. He said that if the Railway gets 400 new locomotives, its deficit will be totally eliminated. He said the railway also needs 60-70 power vans without which how the trains can be run.

When asked that if the railway is not properly functioning then he should resign, the Minister said that he has been made Minister by his party and will resign when asked by the party. General Manager (Operation) Ashfaq Khattak and Divisional Superintendent Aftab Memon were also present on the occasion.
-www.brecorder.com

Activity at Karachi and Qasim ports

2010-07-21T10:48:00.000-07:00

News Paper: Business Recorder

KARACHI (July 21 2010): The Karachi Port handled 149,593 tonnes of cargo including 112,238 tonnes of import cargo; 37,355 tonnes of export cargo and 5,511 loaded and empty containers during last 24 hours ended at 0700 hours on Tuesday. The total import cargo of 112,238 tonnes comprised of 31,060 tonnes of containerised cargo; 3,361 tonnes of general cargo; 33,817 tonnes of bulk cargo: 7,884 tonnes of fertilizer; 22,050 tonnes of coal; 2,100 tonnes of rock phosphate; 1,783 tonnes of flours and 44,000 tonnes of oil/liquid cargo.

The total export cargo of 37,355 tonnes comprised of 25,909 tonnes of containerised cargo; 235 tonnes of general cargo; 11,211 tonnes of bulk cargo: 4,379 tonnes of cement and 6,832 tonnes of bulk cement. Eight ships namely Bunga Raya Sepuluh, Al-Wajba, MT Swat, Hyundai Oakland, Samin-1, Ocean Island and Great Prestige sailed out to sea during the reported period.

Three vessels viz Al-Wajba, MT Karachi and Agean Glory are currently at the berths. Seven ships namely Irenes Rainbow, Emperor, Ocean Project, Hendiah, Al-Kuwaitiah, Bunga Raya Empat and Agean Glory expected to sail on Tuesday, while two vessels viz MT Karachi and Cozumel Cement are expected to sail on Wednesday.

Six vessels viz Pic Saint Loup, James River Bridge, APL Turquoise, Marcampania, Hot Star and New Legend Sun due to arrive on Tuesday, while six ships namely Lodestar Genesis, Vanguard, STX Patraikos, Cap Gabriel, Nadeem and Iron Butterfly are due to arrive on Wednesday.

PORT QASIMThe Port Qasim handled 79,208 tonnes of cargo includes 73,898 tonnes of import cargo; 5,310 tonnes of export cargo and 381 loaded and empty containers (TEUs) during last 24 hours on Tuesday. The total import cargo of 73,898 tonnes includes 37,208 tonnes of furnace oil; 15,356 tonnes of palm oil; 9,700 tonnes of chemicals; 4,454 tonnes of sugar; 3,850 tonnes of canola seeds and 3,375 tonnes of containerised cargo. The total export cargo of 5,310 tonnes includes 3,438 tonnes of cement and 1,872 tonnes of containerised cargo.

Three vessels viz CV Saudi Hofuf, MT Southern Bull and MT Buhairah sailed out to sea on Tuesday morning. A total number of seven vessels viz CV Saudi Hofuf, MV Golden Falcon, MV Orient-II, MV Triton Swift, MT Southern Bull, MT Bunga Alpinia and MT Buhairah are currently occupying berths to load/offload containers, cement, sugar, canola seeds, chemicals, palm oil and furnace oil respectively during last 24 hours.

Five ships namely New Ability, Gas Eastern, Argent Eye Bright, Nedlloyd Tasman and Hartati carrying furnace oil, LPG, palm oil, containers and chemicals are currently at the outer anchorage. A total number of four vessels viz CV Nedlloyd Tasman, MT New Ability, MT Hartati and MT Gas Eastern carrying containers, furnace oil and chemicals are expected to take berths at Container Terminal, FOTCO Oil Terminal, Multi Purpose Terminal(MW-1) and Engro Vopak Terminal respectively on Tuesday.

Three ships namely CV Aruni Rickmers and CMA CGM Coral, CV Al-Noof and MV Sentosa carrying containers and coal are due to arrive on Wednesday. A total number of five vessels viz CMA CGM Eiffel, CSAV Cant Brian, Semho Crystal, Rose-II and Al-Salam-II carrying containers, palm oil, cement and diesel oil are also due to arrive.

-www.brecorder.com

PEL to deploy Oracle application for streamlining services

2010-07-21T10:47:00.001-07:00

News Paper: Business Recorder

KARACHI (July 21 2010): Pak Elektron Limited (PEL), manufacturer of electrical goods in Pakistan, has selected Oracle E-Business Suite Release 12 to streamline its business processes and financial systems. PEL would deploy Oracle E-Business Suite Release 12 to replace various legacy systems, meet growing business demands, optimise operations and align them with the international standards.

With this move, PEL will also be able to streamline purchase orders' processing while strengthening procurement policy compliance. "Economic and competitive pressures are challenging organisations to improve business performance, introduce new products to market more quickly and optimise distribution management. To address these challenges, we selected Oracle for its world-class leading technologies which will help us integrate our decentralised IT infrastructure," said Salman Rehmatullah, Chief Information Officer, Pak Elektron Limited."

Expressing his views, Syed Rizwan Munawar, Country Head, Applications Business, Oracle Pakistan and South West Asia said, "With a strong footprint in the manufacturing industry, Oracle has been serving its
-www.brecorder.com

Connecting coalfields with national rail-track: PRACS given task to complete project

2010-07-21T10:46:00.000-07:00

News Paper: Business Recorder

KARACHI (July 21 2010): After Centre's refusal to finance developing rail-track connecting Thar Coalfields with the port city, the Sindh government has tasked the Pakistan Railway Advisory & Consultancy Services (PRACS), a subsidiary of Pakistan Railways, to complete the feasibility study of suitable route immediately, it is learnt.

Sources told Business Recorder on Tuesday that the Sindh government had long been demanding the Finance Division to release funds for the job, however no positive reply was made. In the federal budget 2010-11, the Centre has not allocated any funds for the development of infrastructure facilities at Thar Coal due to which the Sindh government had taken a decision regarding funding the project from its own sources, they said.

Following the present energy crisis the country is facing, the Sindh government is giving highest priority to the development of coalfields particularly Thar Coal for generating electricity and to curtail dependence on oil, they added.

The PRACS had carried out a feasibility study for providing rail link for Thar Coalfield in year 2004-5 that identified seven routes, however, route Varvai-Islamkot -Mithi-Jamrao-Mirpurkhas-Hyderabad was selected. The Ministry of Railways as well as Sindh Chief Minister had approved the route on January 7, 2005. Afterwards, new coalfields were also discovered in Badin, Tando Mohammad Khan and Thatta districts and Thar Coal and Energy Board (TCEB) on January 9, 2010 decided to include these districts in the rail route so that the newly found reserves could also be promoted.

And on June 22, 2010 the TCEB has approved route - Mithi-Naukot-Talhar-Matli-Tando Mohammad Khan-Hyderabad-Dhabeji and asked the PRACS to complete the job within three months time, they said, adding that an amount of Rs 22.618 million has also been released to the PRACS to avoid any further delay.

Moreover, the sources said railway was the cheapest and environment-friendly mode of transportation especially in case of bulk and long haulage and added that developing rail links for these coalfields would be beneficial. However, the existing roads from Karachi via Thatta and Mirpurkhas to Thar Coalfields were not worthy for transportation of heavy machinery to be used in mining and coal-fired power plants, they said.
-www.brecorder.com

'Multan Industrial Estate': phase-II to be completed by December 20: official

2010-07-21T10:45:00.000-07:00

News Paper: Business Recorder

LAHORE (July 21 2010): The phase-II of Multan Industrial Estate, under the supervision of Punjab Industrial Estates (PIE), will be completed by December 20 of the current year. As many as 349 industrial plots ranging from 4-kanal to 2-acres, would be developed on an area of 667 acres. It is pertinent to mention that 110 plots have already been allocated for different sectors, said PIE spokesman.

He said that allotment process would continue even during the development work. The estate, on its completion, is likely to attract an investment of Rs 1.5 billion besides generating employment opportunity for 35,000 workers. The PIE, with a view to ensure timely completion and quality of work, has set up its Project Director office in Multan which started functioning from July 1, 2010.
-www.brecorder.com

US package positive step: minister

2010-07-21T10:44:00.000-07:00

News Paper: Business Recorder

LAHORE (July 21 2010): Punjab Finance Minister Tanvir Ashraf Kaira has said that announcement of US package for Pakistan is a positive step between bilateral relations of both countries. He expressed these views while talking to a delegation of MPAs here on Tuesday, disclosed an official.

The Minister hoped that the aid committed in Kerry-Lugar Bill would also be provided to Pakistan soon. He said US $690 million US package would expedite development process in the country and it will have a positive impact on various sectors. The US government has announced package for agriculture, health, energy, water resources and other sectors, which is a proof that Pakistan is a US' trustworthy friend.

He told them that the US has shown its confidence on the democratic government and its credit goes to our dynamic leadership. "The US government should focus on ground realities and trade facilities and access to the US markets should be provided to Pakistani traders and industrialists," he added. He also hoped that the promises of friends of Pakistan would soon be fulfilled and our economy would be on right track
-www.brecorder.com

US aid can lessen, but not remove Pakistan mistrust

2010-07-21T10:43:00.001-07:00

News Paper: Business Recorder

ISLAMABAD (July 21 2010): US Secretary of State Hillary Clinton's pledge for new development projects for Pakistan is an important step to win favour with its sceptical people but may not be enough to overcome deep mistrust and anti-American sentiment. Clinton this week announced a raft of development projects for Pakistan, a vital ally for the United States in its efforts to stabilise neighbouring Afghanistan but where anti-American sentiment runs high.

While Washington's latest aid worth $500 million can contribute to changing Pakistanis' perception about the United States once they start reaping benefits from these projects, it is an uphill task to overcome decades old mistrust. "Public opinion will change with the change in ground realities," said Hasan Askari Rizvi, a security analyst. "Anti-American propaganda will get negated to some extent once these projects are realised but the Pakistani public will largely remain sceptical because anti-Americanism is very strong here."

Mistrust of US policies in Pakistan partly stems from Washington's decision to turn away from its Cold War era ally after the Soviet withdrawal from Afghanistan in the late 1980s. Anti-Amercian sentiment runs high mainly in Pakistani border regions with Afghanistan which traditionally have been strongholds of anti-US hardline Islamic groups. These regions have turned into sanctuaries for al Qaeda and Taliban militants who fled the US-led war in Afghanistan.

US missile strikes in these areas by pilotless drones, which sometimes hit civilians, have deepened anti-US feeling. Several development projects announced by Clinton - including dams and power generation - will be undertaken in these militancy-stricken border regions which is seen as an attempt to shore up support among Pashtun tribes.

LINGERING MISTRUST But many people doubt that US aid would help reduce ill-feeling for the United States. "We don't need dams. We need peace," Islamuddin, a tribesman in North Waziristan region on the Afghan border said. "Such projects are a big joke with us."

While expressing support for Pakistan, Clinton also raised Washington's concerns with the Pakistani leaders, which many people say is reflective of "well-entrenched" mistrust between two countries which suspect but also need each other. "Hillary's iron fist in a velvet glove," Dawn newspaper ran a headline on its front page. Speaking at a roundtable of journalists on Monday in Islamabad, she said both the United States and Pakistan should work harder to go after al Qaeda leaders who she still believed to be hiding in Pakistan's borderlands in the north-west.

The United States has long been pushing Pakistan to extend its offensive against militants who launch cross-border attacks on foreign forces in Afghanistan. But Islamabad is reluctant to do so, saying it is too tied down with home-grown militants who challenge the Pakistani state.

Despite lingering mistrust, Clinton said the uneasy allies would work together. "There is a legacy of suspicion that we inherited ... It's not going to be eliminated overnight," she told a news conference. "However, our goal is to slowly but surely demonstrate that the United States is concerned about Pakistan for the long-term and our partnership goes far beyond security."
-www.brecorder.com

APTTA: installation of tracking devices would not serve purpose: analysts

2010-07-21T10:42:00.000-07:00

News Paper: Business Recorder

KARACHI (July 21 2010): The installation of tracking devices on the trade bound carriers, under the latest Afghanistan Pakistan Transit Trade Agreement (APTTA) would not serve its purpose in curbing corrupt practices, analysts said on Tuesday. Concerned authorities have agreed to install tracking devices on the tops of all carriers, transporting goods under the APTTA, to ensure they reach their desired destinations.

Talking to Business Recorder, the analysts, belonging to public and private sectors, said the decision to install the tracking devices on the trade bound carriers would not serve its purpose as the decision is taken to ensure that goods imported for Afghanistan could safely reach its destinations, but it does not look effective enough to restrict those goods to reach the local markets. This would also provide an opportunity to the corrupt people to bolster their practices, they added.

The analysts further said the effective monitoring of transit cargo could only be made possible if the tracking devices are installed in the trade bound carriers instead of on top of them. Expressing fear they said although the authorities of either side have agreed to collect financial guarantees equal to the amount of import levies of Pakistan from authorised persons to keep a check on the illegal trade, the chances of a misuse of the said guarantees for the import of banned items including cloths, cosmetics, etc from India for local markets could not be ruled out.

Responding to a query, they said the agreement could be fruitful for Pakistan if they bound Afghanistan to avail the transit facility only for those items that are needed in their country. Furthermore, they said if the Pakistan government cannot bound its neighbour in this regard, there is another way to curb the illicit trade activities on the transit trade route.

Elaborating, they said the rates of duties and taxes, which are around 45 per cent, should be reduced in accordance with the tax-rates applied in Afghanistan to encourage importers to use legal channels to market their imported goods in the country.

Moreover, the analysts said the basic principle rules and custom components ie introduction of common external tariff and custom law, industrial, agricultural, competition, investment, import/export, banking and foreign exchange, anti-dumping temporary import/export, export processing duty and free zones, draw back for manufacturing of goods for export, product standards, technical regulation and under bond manufacturing policies and strategies should be revised by the authorities in order to improve the trade activities in Pakistan.

They also urged the authorities to allow a cross border movement of goods from either side to create adequate trade benefits for them. Lastly the analysts said the APTTA, besides raising security concerns of Pakistan, would adversely effect its economy
-www.brecorder.com

Government forced to backtrack: Commerce ministry issues 'clarification'

2010-07-21T10:41:00.001-07:00

News Paper: Business Recorder

ISLAMABAD (July 21 2010): Yielding to countrywide protests over allowing India-Afghanistan trade via Wahgah as part of new Afghanistan-Pakistan Transit Trade Agreement (APTTA), the government on Tuesday "clarified" that APTTA has not yet been signed between Pakistan and Afghanistan.

In addition to a large number of trade bodies and other stakeholders, Pakistan Army and intelligence agencies had expressed their reservations on the two-way trade between India and Afghanistan through land route. "We are against any export of Indian commodities to Afghanistan through Pakistan as it will have serious implications on our security as well as the economy of the country," well placed defence sources told Business Recorder on Tuesday.

They said that the Army was taken into confidence before Afghanistan-Pakistan Transit Trade Agreement (APTTA) was inked, but some reservations over import of Indian goods by Afghanistan through land route still remained. Before giving a final nod to the APTTA by Ministry of Commerce, the GHQ was fully informed about the pros and cons of the agreement, officials of Ministry of Commerce claimed. They said that goods to be transported under this agreement need to be scrutinised thoroughly before they are allowed to pass through Pakistani territory.

ISI sources, when contacted, refused to comment without first reviewing the details of the minutes that were signed by the ministers of the two countries. The Foreign Office, during the process of finalisation of the APTTA, sent a letter to Ministry of Commerce saying that the intelligence agencies of Pakistan have some serious concerns over the agreement. The letter noted that the intelligence agencies have informed the Foreign Office about their reservations on the agreement.

APP adds: Commerce Ministry on Tuesday clarified news reports regarding the draft Afghanistan Pakistan Transit Trade Agreement (APTTA) and termed them baseless and contrary to the facts. A press release issued here on Tuesday said: "The Afghanistan Pakistan Transit Trade Agreement has not yet been signed between the two countries."

A ministerial level meeting was held between the Commerce and Finance Ministers of Afghanistan and Pakistan on July 17. The ministerial meeting resolved certain outstanding issues. The record note of the meeting was signed at the Prime Minister Secretariat on July 18. "The Afghanistan Pakistan Transit Trade Agreement would be drafted in due course and signed by both sides after completing the respective procedural and legal formalities," the press release stressed.

Regarding Indian exports to Afghanistan, the ministry clarified that Indian exports to Afghanistan are being transited through Karachi Sea Port since 1965. No Indian exports to Afghanistan will be allowed through Wagah. Afghan trucks would use designated routes and remain only on Pakistani side of the Wagah border to unload their export cargo for India.

Empty Indian trucks will be allowed to cross Wagah border and come on Pakistani side where Afghan cargo will be transferred to Indian trucks inside Pakistani territory, the press release added. Empty Afghan trucks on return from Wagah can carry only Pakistani exports to Afghanistan on designated routes.
-www.brecorder.com

BIT in its present format: US refuses to resume talks

2010-07-21T10:40:00.001-07:00

News Paper: Business Recorder

ISLAMABAD (July 21 2010): United States of America (USA) has reportedly refused to resume negotiations with Pakistan on the much talked about Bilateral Investment Treaty (BIT) in its present format, well-informed sources in Board of Investment (BoI) told Business Recorder.

This was disclosed at a recent meeting of stakeholder ministries/organisations held under the chairmanship of Secretary, Board of Investment (BoI) to review proposals for resuming negotiations on the draft Pak-US Bilateral Investment Treaty (BIT). The sources said Director Legal pointed out that Pakistan and the US have been negotiating BIT since December 2004. Four rounds of direct negotiations along with a series of audio/video conferences have taken place.

Negotiations, however, remained suspended since March 2006, when differences appeared on five major Articles of the Treaty. Recently, in response to a communication from the US, the Pakistani side indicated its readiness to resume negotiations but the US government stated that they were in the process of evolving a new template for the BIT that would be the basis of further negotiations.

Participants, sources said, underlined that it was fruitless to give views on five unresolved articles from the previous template that would no longer be valid when the new template was received. Some participants stated that Pakistan should not reveal its position prior to receiving the new template and first examine its import and implications.

The meeting also decided that Ministry of Foreign Affairs and Ministry of Finance should monitor progress on the development of the new US template for BIT. After receiving the new draft of the BIT, further consultations and negotiations can then accordingly be resumed, the sources continued.

In December 2008, in an interview with Business Recorder, Senator Waqar, the then Minister for Investment, had stated that in his talks with Senator John Kerry, he had expressed the hope that Pakistan would sign a Free Trade Agreement (FTA) with the US within six months to a year which has still not materialised.

He had also indicated that if FTA is not signed within this period then Pakistan may opt for BIT which has also remained a pipedream. Pakistan, however, is to start negotiations on BIT on promotion and protection of investment with the Economic Co-operation Organisation (ECO) member states.

The Agreement on Promotion and Protection of Investment (APPI) among ECO member states was formally discussed by the High Level Experts Group (HLEG) in its meetings held in Islamabad and Istanbul on 17-19 March, 2005 and 5-7 July, 2005 respectively. The current members of ECO include Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan.

Of these, three have already signed the agreement. According to the BoI, due to growing economic integration regional economies are collaborating with each other to enhance the ease of doing business and promote regional trade and investment. "Signing of a multilateral investment promotion and protection agreement is a step towards deepening regional ties," they added.

-www.brecorder.com

Transporters reject trade deal

2010-07-21T10:38:00.000-07:00

News Paper: Business Recorder

PESHAWAR (July 21 2010): Khyber-Pakhtunkhwa Truck & Trailer Association and Public Transport Legal Action Committee, Khyber Pakhtunkhwa had rejected Pak-Afghan Transit Trade Agreement and one rupee per kilogram tax and fixation of the weight of 22-ton on the National Highway Authority (NHA) installed scales on the motorway.

Addressing a joint press conference, president, Khyber Pakhtunkhwa Truck & Trailers Association, Haji Mohammad Jan and president, Public Transport Legal Action Committee, Haji Ihsanullah demanded stoppage of the illegal collection in the pretext of the police checking and shifting of the transit toll plaza from Ring Road, Hayatabad to the jurisdiction of the Jamrud, Khyber Agency.

They warned of not only moving the judiciary, but also observing hunger strike against these injustices of the government. The transporters' association alleged that in the pretext of the security checking police is collecting 'bhatha' from transporters in Charsadda, Shabqadar and Peshawar. They said that the responsibility of police is the search of the suspected vehicles and control smuggling. But, they are collecting bhattha in the name of checking.

They said that smugglers smuggle goods worth million of rupees from Afghanistan to Pakistan. But, on the other hand the government of Pakistan had levied one rupee per kilogram tax on the goods loaded in the trucks from July 1, 2010. The decision will result in the increasing of the prices of the essential food items.

They called for the abolition of the toll tax imposed since July 1 and collecting of the toll tax at the rate of the previous one. Similarly, the decision of the fixation of the weight of 22 ton at NHA's scales would be abolish to allow transportation of 40-ton weight in the trucks. With the present cut in the weight of goods, the goods of one vehicle would be loaded on two different trucks and the ultimate affectees would be general public. The office-bearers of both associations announced a 15-day deadline for the acceptance of their demands. Otherwise in case of the non-acceptance of their demands they would go for indefinite hunger strike
-www.brecorder.com

APTTA pact to hit local industry: SCCI

2010-07-21T10:37:00.000-07:00

News Paper: Business Recorder

SIALKOT (July 21 2010): President Sialkot Chamber of Commerce and Industry (SCCI) Mohammad Ishaq Butt in a press statement has said that signing of Afghan-Pakistan Transit Trade Agreement (APTTA) is a destructive blow for the local industry. Spearheaded by the United States, the two countries have signed an agreement allowing Afghanistan-India trade through land route he said.

The SCCI President further said that allowing the land transit facility to India will be detrimental to the Pakistan industry because it would create multiple problems for the local products. He said that it would lead to unauthorised trade, to handicap the local industry and to create other serious issues due to smuggle of goods. He said that the agreement has been signed on the great pressure of the USA, without keeping in view the interest of the local industry.

India would take great advantage of this agreement to dump its goods in Pakistan and supplying to the Central Asian States. The government should keep in view pros and cons of such decisions, which cannot be termed as right or friendly to the country, he said. He stressed upon the parliamentarians to reject this agreement and ensure that it is not approved by the cabinet otherwise industry of Pakistan would be ruined.
-www.brecorder.com