Pakistan Economy - News & Updates - Archive

[Neo]

IPI pipeline project: Iran reduces gas price to 78 percent of crude oil tariff​

ISLAMABAD (January 16 2009): Iran has scaled down its earlier demand to link the price of gas from 85 percent to 78 percent of crude oil price under the still to be approved Iran-Pakistan-India (IPI) gas pipeline deal. The steering committee on IPI gas pipeline project, which is a sub-committee of the Economic Co-ordination Committee (ECC) of the Cabinet, was informed that it had decided to recommend to the Cabinet to show greater flexibility on the gas price on offer by Iran.

The steering committee on IPI held its eighth meeting, chaired by Advisor to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain here to review the current status of the project. The steering committee reviewed the current status on IPI gas pipeline project, and decided to further negotiate with Iran the clauses related to gas price.

The committee, however, took positive note of the deliberations held so far between Pakistan and Iran on the project. The steering committees recommendations will be placed before the Cabinet for approval. Advisor to the Prime Minister on Finance Shaukat Tarin, Chief Minister of Balochistan Aslam Raisani, Special Assistant to the Prime Minister on Finance, Economic affairs and statistics Hina Rabbani Khar, Petroleum Secretary Mehmood Saleem Mehmood, Managing Director of ISGS Hassan Nawab Khan and other officials attended the meeting.

Sources revealed to the Business Recorder on Thursday that Tehran had shown more flexibility on the gas price as the meeting was informed that Iran had now placed a request to link the gas price to 78 percent of crude oil price. Earlier during the bilateral talks on IPI held in Tehran on December 29-30, 2008, Iran sought linking the gas price to 85 percent of crude oil price.

Pakistan had offered to link gas price to 60 percent of crude oil price. Sources said that the steering committee decided to present the fresh demand of Iran to link the gas price to 78 percent of crude oil price before the Cabinet for guidelines to resume the talks on IPI. The meeting observed that the country would generate 5000 MW electricity from one billion cubic feet gas per day (bcfd) imported from Iran.

It was noted that thermal power plants required gas to generate power. The current power shortfall is 3000 MW that would rise to 10,000 MW per day by 2020. Sources said that the committee noticed that the country was also facing 700 million cubic feet per day shortfall that would shoot up to two billion cubic feet per day by 2010. It also reviewed the electricity, generated from solar and wind project, was costlier than electricity generated from thermal plants to be operated on imported gas from Iran.

Addressing the meeting, Advisor to Prime Minister on Finance Shaukat Tarin said that economy of the country would have the capacity to consume more gas in the near future.

He said that the industrial units were facing gas shortfall that was causing reduction in the production. He said that industry required energy and gas on an emergent basis, which must be imported from Iran to bridge the gap between the demand and energy deficit.

Special Assistant to the Prime Minister on Finance, Economic Affairs and Statistics Hina Rabbani Khar said that it was time to make a final decision on the IPI gas pipeline project, and added that there should be no more delay on the deal with Iran.

The IPI project will have a 2,775-kilometre-long pipeline to carry Iran's natural gas to Pakistan and India. The project, estimated to be completed in three to five years time, is expected to benefit energy-starved Pakistan. The pipeline would be supplied from South Pars field. The construction operation was to start in 2009 and the pipeline was expected to be completed in 2013, the committee was told.

 

[pkpatriotic]

Agri credit cards under consideration
By Khalid Mustafa
Saturday, January 17, 2009

ISLAMABAD: The government is studying a plan to introduce Agri Swipe Cards in a bid to stimulate the agriculture industry, which is the mainstay of the country’s economy and contributes 22 per cent to the gross domestic product (GDP).

In that regard, the Planning commission was vigorously working on the agri credit cards for farmers, a senior official told The News.

When contacted Planning Commission Secretary Sohail Safdar confirmed that the government was preparing a strategy to concentrate more on the agriculture sector and the introduction of swipe cards was part of that plan.

However, the official source explained the credit card would have a limit of Rs500,000 and the farmers would not be allowed to draw cash. They would only use the cards for purchasing fertilisers, tractors and other tools and appliances for the farm industry.

To a question, the official said the State Bank of Pakistan had given a green signal for introducing the cards.

Basically, the government is busy in chalking out a plan to provide relief for the masses in such a way that the impact of harsh political and economic conditions is reduced.

“The Planning Commission, headed by Sardar Aseff Ali, under the proposed strategy is working on some measures to be taken in the social sector for reducing poverty,” the official said.

After formulating the strategy, the official said, the Planning Commission would submit it to the federal government for implementation.

Keeping in view the fact that 70 per cent population lives in rural areas, the Planning Commission will come up with a plan to offer insurance schemes for crops, which would provide a massive relief for the farmers. In addition, the Planning commission is also examining life insurance for small farmers and businessmen which would give confidence, enabling them to launch their farm-related business independently.

Besides all these, some 200,000 to 250,000 young people would be given technical training on war footing so that they could earn a reasonable livelihood.

Pakistan has a huge young population totalling 100 million who are below the age of 26 years. If all of them are given technical training, Pakistan can provide biggest workshop for the whole world.

 

[pkpatriotic]

Weekly inflation up more than 20pc
By Israr Khan
Saturday, January 17, 2009

ISLAMABAD: The Federal Bureau of Statistics (FBS) on Friday reported that weekly inflation, measured by the Sensitive Price Index (SPI) of 53 daily-use kitchen items for the week ended on January 15, has increased by 20.50 per cent as compared to the corresponding week of the last fiscal year.

The figures showed a slight increase in inflation percentage during the week and went up from 19.25 per cent in the previous week to 20.50 per cent. The bulletin, based on data collected from 17 urban centres, showed increase in prices of 12 essential commodities, decline in 12, while prices of 29 items remained stable.

The most depressing aspect was that in a span of one week various kitchen and other necessary items became very costlier.

SPI inflation was recorded at 19.67 per cent for low income families belonging to the Rs3000 income group during the week, followed by 20.27 per cent for families falling in the Rs3001 to Rs5000 income group, and 21.20 per cent for Rs5001 to Rs12000 income group. Inflation during the week under review was recorded at 20.57 per cent for families earning above Rs12000 monthly income.

According to the price trend during the week under review, price of per kilogram loose vegetable ghee increased to Rs104.24 from Rs100.09, LPG (11 kg cylinder) to Rs859.12 from Rs831.06, gur per kg to Rs42.20 from Rs40.91, mustard oil per kg to Rs143.47 from Rs141.52, garlic per kg to Rs44.03 from Rs43.57, chicken (farm) per kg to Rs90.35 from Rs89.50, gram pulse washed per kg to Rs60.09 from Rs59.66, washing soap nylon cake to Rs12.65 from Rs12.56, tea (prepared) cup to Rs8.50 from Rs8.44, masoor pulse washed per kg to Rs129.26 from Rs128.51 0.58, wheat average quality per kg to Rs24.70 from Rs24.58, bread plain mid size each to Rs24.15 from Rs24.09, cooked beef plate each to Rs40.40 from Rs40.30, fresh milk per liter to Rs36.19 from Rs36.16, mutton per kg to Rs258.38 from Rs258.23, curd per kg to Rs43.07 from Rs43.05, beef per kg to Rs143.02 from Rs142.97.

Average prices of the following items declined during the week, ie tomatoes per kg to Rs22.17 from Rs25.40, potatoes per kg to Rs16.03 from Rs16.85, egg hen (farm) per dozen to Rs56.22 from Rs59.02, cooking oil (tin) per 2.5 liter to Rs338.88 from Rs351.47, onions per kg to Rs21.54 from Rs22.25, firewood per 40 kg to Rs267.21 from Rs271.03, rice basmati broken per kg to Rs44.52 from Rs45.05, vegetable ghee (tin) per 2.5 kg to Rs329.71 from Rs331.47, red chillies per kg to Rs135.76 from Rs136.35, rice irri-6 per kg to Rs36.36 from Rs36.47, wheat flour average quality per kg to Rs25.23 from Rs25.30, mash pulse washed per kg to Rs75.88 from Rs75.92, bananas per dozen to Rs34.43 from Rs34.44, moong pulse washed per kg to Rs48.16 from Rs48.17.

 

[pkpatriotic]

NEPRA revises power tariffs for distribution companies
Saturday, January 17, 2009

ISLAMABAD: The National Electric Power Authority (NEPRA) on Friday announced different power tariffs for eight electricity distribution companies based on monthly power purchase price (PPP) keeping in view fluctuations in fuel prices in November 2008.

The power watchdog actually reviewed prices on the request of the government and came up with modified tariffs according to which the authority has reduced power tariffs of Islamabad Electric Supply Company (Iesco) by 12 paisa per unit, Peshawar Electric Supply Company (Pesco) by 11 paisa per unit, Quetta Electric Supply Company (Quesco) by Rs2.11 per unit and Gujranwala Electric Power Company (Gepco) by 17 paisa per unit.

However, NEPRA increased power tariff of Multan Electric Power Company by 1 paisa per unit, Hyderabad Electric Supply Company by 7 paisa per unit, Lahore Electric Supply Company by 1 paisa per unit and Peshawar Electric Supply Company by 11 paisa per unit.

The power regulator now adjusts tariffs of distribution companies keeping in view fuel price fluctuations every month, as earlier it was used to review the power tariff on fortnightly basis under an automatic fuel adjustment formula.

When contacted one of the top officials in the Ministry of Water and Power said that keeping in view the recommendations of NEPRA, the government takes the tariff of IESCO as a baseline for decision to implement across the country, except Karachi.

However, the government would not scale down the price of 12 paisa as the government did not pass on the increase in tariff as earlier recommended by the regulator.

However, the government ensures the unified tariff for end consumers by extending the huge subsidy under the head of the inter-tariff differential. —KM

 

[pkpatriotic]

Cellphone firms seek increase in call rates
Saturday, January 17, 2009
By Jawwad Rizvi

LAHORE: Two major cellular operators of the country have proposed increase in call rates, saying revenues of the telecom industry have been declining which in turn affects investment in the sector.

The News has learnt that the proposal was floated in a meeting held at Pakistan Telecommunication Authority (PTA) headquarters on Wednesday, January 14, 2009 in the morning session and continued till lunch time.

Chairman PTA, Dr Yasin chaired the meeting, which was attended by the Chief Executive Officers (CEOs) of all cellular operators of Pakistan and member finance to evaluate the financial situation of the cellular industry.

Sources privy to the meeting revealed that various issues of the telecom industry were discussed in the meeting. The meeting also talked about the impact of the current global financial crunch and national issues for the telecom industry.

Cellular operators’ representatives stated that their revenue had registered a declining trend. Representatives of the two operators, of which one has the country’s largest customer base and the other is a sister organisation of the national telecommunication company, had proposed to increase call rates in order to attract further investments and maintain the quality of their services.

They said the sector had received the highest Foreign Direct Investment (FDI) during the last couple of years and in the current scenario no further investments are expected.

Cellular operators said the revenue of the telecom industry dropped due to an increase in taxes. The Average Revenue Per User (ARPU) has been reduced to $2.7 per consumer, as compared to last year’s $4 per consumer in the same period. They proposed the burden should be shifted on to the consumers by increasing call rates.

Of the two operators’ representatives, one is based in China while the other is UAE-based. The UAE-based representative opposed the idea of increasing call rates, saying that it would reduce the consumer base. They also opposed the idea as the customers are already affected with the current high tax rates and imposition of new 5 per cent surcharge on every easy load has also put extra burden on the customers. They said the ARPU was declining due to many other reasons, not only due to taxes. On the other hand the Norway based cellular operator representative remained indifferent to this issue.

A spokesman of the sister organisation of National Telecommunication Company confirmed to The News that the meeting of all mobile company CEO’s, PTA Chairman, Member Finance PTA. However, he said that the meeting was not for increasing mobile tariffs, but rather to evaluate the financial situation of the cellular industry in the country. He said various suggestions were discussed for the betterment of the industry and consumers. This meeting was called in by the PTA.

Other issues which were also discussed in the meeting included UAN, SMS interconnection, infrastructure sharing. The meeting also discussed different competitive and aggressive call rates. It mentioned that the telecom industry was still in its growing phase, although the pace of growth was slower compared to previous years. This is understandable given the global financial crisis, rising costs in Pakistan, as well as the maturity phase, which the industry is now experiencing.

 

[pkpatriotic]

Textile package within days: Tarin
Saturday, January 17, 2009
By our correspondent

LAHORE: Adviser to Prime Minister on Finance, Shaukat Tarin, has assured the All Pakistan Textile Mills Association that the government is fully aware of issues faced by the sector and promised a facilitation package within days rather than weeks.

An APTMA delegation, led by Chairman Tariq Mehmood, met with the adviser on Friday. Textile Minister Rana Farooq Saeed, secretary finance and secretary textiles were also present.

The APTMA chairman gave a presentation on the deepening crisis for the textile industry and called for an urgent need for remedial measures. The meeting focused on the extreme hardships being faced by the industry due to the current financial turmoil.

The issues included banking problems, severe disruption in energy supply coupled with a steep rise in tariffs, spiraling inflation and lack of appropriate incentives compared with regional competitors.

The textile minister also emphasised the need for timely resolution of the problems mentioned by the industry.

 

[pkpatriotic]

SECP appoints four directors
Saturday, January 17, 2009
By our correspondent

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has appointed four non-member directors on the board of the Islamabad Stock Exchange (ISE) and a director on the board of National Clearing Company of Pakistan Ltd (NCCPL). Muhammad Aliuddin Ansari, Chief Executive Officer of Dewan Drilling, has been appointed director on the board of NCCP.

In terms of requirements of the articles of association of the exchange, Reckitt Benckiser Pakistan Ltd Chairman Aslam Khaliq has been re-nominated to serve the ISE for the year 2009.

In addition, R A Chughtai, President of SME Bank, M Afzal Khan, Chairman of Biafo Industries and Muhammad Shahid Sadiq, Partner of A F Ferguson & Co have been nominated/appointed as non-member directors on the ISE board.

It is expected that the board of directors will greatly benefit from the extensive knowledge and experience of the above professionals and promote principles of good governance.

 

[Introvert]

Pakistan, Iran agree to reduces taxes on 300 items: Zadeh

Jan 16 (APP)‑ Pakistan and Iran have agreed to reduce taxes and custom duty on 300 items to give boost to bilateral trade.

Mohammad Javad Mohammadi Zadeh, Governor General of Khorasan‑e‑Rizvi province of Iran, disclosed this in a press briefing at Governor House here on Friday. Punjab Governor Salman Taseer was also present.

Responding to reporters’ queries, Zadeh said that Punjab‑Khorasan Chamber of Commerce would soon be established to facilitate the investors and traders from both sides.

The Chamber, he added, would endeavour to ensure an organized banking system between the two brotherly Muslim countries, besides help making easier the visa acquisition for investors, traders and industrialists from Pakistan and Iran.

The Governor General said that current bilateral annual trade volume of $ 600 million is not enough, adding that it should initially be expanded up to $ 2 billion per year, for which leadership of both sides could play an important role.

To a question, he said Iran has already ensured some eases to Pakistan with regard to provision of petroleum on credit.

While Iran‑Pakistan‑India gas pipeline, which he termed Peace Pipeline, would soon be finalized among the three stakeholders, he said, adding that Iran is eagre to finalize this vital project.

To another question about current Pak‑India tension, he said that Iran advocated the geographical sovereignty of Pakistan and wanted regional peace.

During his visit, he said, both the governments signed six MoUs and private sectors also inked six agreements, adding that these included academic and university level cooperation, trade and economy, tourism, agriculture, livestock, industry, infrastructure, energy and power sector etc.

Zadeh termed his visit to Punjab as a rock solid step towards expanding bilateral trade volume. He also thanked the public and private sectors of Punjab and Iranian consulate in Lahore for making his visit a roaring success.

On this occasion, Punjab Governor Salman Taseer observed that there is no difference between people of Punjab and Khorasan, as they are like brothers. He said Pakistan and Iran have historic, cultural, religious and deep‑rooted ties, and always supported each other in any time of difficulty.

http://www.app.com.pk/en_/index.php?option=com_content&task=view&id=65176&Itemid=2

 

[pkpatriotic]

Buying rice at higher than market price: investigation to be initiated against TCP
MUSHTAQ GHUMMAN

ISLAMABAD (January 17 2009): The government is reportedly initiating an investigation against the Trading Corporation of Pakistan (TCP) for procuring rice at above the market price, sources told Business Recorder. They said that the Economic Co-ordination Committee (ECC) of the Cabinet had directed the TCP to procure500,000 tons processed rice, made up of 300,000 tons non-basmati rice (Irri-6 & KS-282), and 200,000 tons Super Basmati rice, on the basis of open tenders.

It had also been directed to float tenders immediately, on December 6, 2008, for purchase of 20,000 tons Irri and 100,000 tons Super Basmati rice. Tenders for the remaining 200,000 tons were to be floated, by TCP, on the subsequent, written, advice of Ministry of Food and Agriculture.

Sources said that TCP was reported to have procured both varieties of rice from the market, as Reap had refused to give the price. The ECC was apprised on December 30 about a meeting presided over by Prime Minister Yousaf Raza Gilani regarding procurement of rice by TCP as a price support initiative.

IN THE MEETING, FOLLOWING DECISIONS WERE TAKEN:

(i) TCP will vacate its storage godowns at Pipri , Karachi which have a storage facility of 0.5 million to 0.6 million tons by the second week of December 2008, to make space for stocking rice, which it would procure from the open market;

(ii) TCP will, on availability of sufficient stocks, find export markets for this rice, and do so in a transparent manner through international tenders;

(iii) Minfal will set up a committee comprising its own experts to inspect the rice to be purchased by TCP, and certify its quality. Only then will TCP allow such purchased rice to be stored in its godowns.

Sources said that a committee, headed by Minister for Food and Agriculture, had been constituted to supervise the process of export of rice stocked by TCP. They said that TCP had been directed not to offload any rice into the local market or into the international market till written advice was received from the Ministry of Food and Agriculture.

When the Commerce Ministry sought ex post facto approval of the Prime Minister's decisions from the ECC headed by Finance Advisor Shaukat Tarin on December 30, 2008, some ECC members were reported to have pointed out that in the recent past, due to scarcity of fertiliser, rice crop was also partly affected.

It was suggested that the support price of rice should be fixed before harvesting stage so that the small farmers should reap benefit. In case the support price was fixed after harvesting it would benefit the middleman only.

In this regard it was suggested that a task force under the chairmanship of Minister for Food and Agriculture and Ministers for Industries & Production and Privatisation, Deputy Chairman Planning Commission, Secretary Finance as its members be constituted and Secretary Food and Agriculture will act as its Secretary.

The task force would develop coherent strategy on four major crops ie wheat, cotton, rice and sugarcane, evolve a rational support price mechanism for the aforesaid crops and recommend measures to ensure need based availability of the items throughout the year with equitable benefit to the small farmers and consumers.

 

[fatman17]

Transportation

Pakistan to be gas sufficient in 3 years

By an OGJ correspondent

KARACHI, Jan. 16 -- Pakistan cannot afford to import gas from Iran and has formulated a government policy to be self-sufficient in gas within 3 years, said Asim Hussain, oil and gas advisor to the prime minister.

Speaking in the National Assembly, Pakistan's Lower House, Asim said Iranian gas would cost $500 million/month.

The government has formulated a policy under which it would be self-sufficient in gas within 3 years, he added.

Asim said Pakistan now has a shortfall of 700 MMcfd of gas, up from 500 MMcfd last year. He criticized the previous administration for not exploring indigenous gas during the last 7 years as the demand for gas increased. He said 235,000 consumers, 770 CNG stations, and 4,700 commercial connections were added last year. But there was no increase in the gas production.

 

[fatman17]

‘Iran-Pak increase trade by $1.4bn’

* Iranian governor general says Ahmadinejad keen to strengthen ties between countries

Staff Report

LAHORE: The Iran and Pakistan governments will reduce taxes on at least 300 products, while Iran will increase its business with Pakistan from $600 million to $2 billion per annum, Governor General of Iran Khurasaan Muhammad Jawad said on Friday.

He was talking to the media during a farewell reception organised by Punjab Governor Salmaan Taseer. Responding to the question of whether Iran could provide Pakistan with oil on credit to cope with the ongoing energy crisis, he said his government was already considering different options to facilitate Pakistanis, including the gas pipeline project and provision of other petroleum products.

He said he had visited several cities in Punjab and was amazed to see so much enthusiasm and love from the Pakistanis towards their Iranian brothers. He signed a number of memorandums of understanding with private and public sector institutions. He also invited the Punjab governor, Chief Minister Shahbaz Sharif, businessmen, and people from other walks of life to visit Iran.

Ties: He said Iranian President Mahmood Ahmadinejad was keen to strengthen ties between Iran and Pakistan. While responding to a question regarding Iran’s perspective of Pakistan-India relations, he said Iran wanted sovereignty of Pakistan, adding that it also wanted peace in the region. He announced the start of a joint chamber of commerce between Punjab and Khurasaan, a flexible banking system, and reduction of taxes on goods, including rice.

He said he had signed at least 12 different documents during his stay in Pakistan regarding the mutual cooperation in trade, industry, education, agriculture, livestock, power and energy. Taseer said Iran and Pakistan shared a lot of cultural and historic values. He also thanked the Punjab chief minister, Lahore Nazim Mian Amir Mehmood, and the council general of Iran for facilitating his Iranian counterpart, and providing him with so much support during his stay in the country.

 

[ju87]

Transportation

Pakistan to be gas sufficient in 3 years

By an OGJ correspondent

KARACHI, Jan. 16 -- Pakistan cannot afford to import gas from Iran and has formulated a government policy to be self-sufficient in gas within 3 years, said Asim Hussain, oil and gas advisor to the prime minister.

Speaking in the National Assembly, Pakistan's Lower House, Asim said Iranian gas would cost $500 million/month.

The government has formulated a policy under which it would be self-sufficient in gas within 3 years, he added.

Asim said Pakistan now has a shortfall of 700 MMcfd of gas, up from 500 MMcfd last year. He criticized the previous administration for not exploring indigenous gas during the last 7 years as the demand for gas increased. He said 235,000 consumers, 770 CNG stations, and 4,700 commercial connections were added last year. But there was no increase in the gas production.

Are these the gas reserves in Sui that will supply the gas? Or have deposits been discovered elsewhere?

 

[jamal18]

Transportation

Pakistan to be gas sufficient in 3 years

By an OGJ correspondent

KARACHI, Jan. 16 -- Pakistan cannot afford to import gas from Iran and has formulated a government policy to be self-sufficient in gas within 3 years, said Asim Hussain, oil and gas advisor to the prime minister.

Speaking in the National Assembly, Pakistan's Lower House, Asim said Iranian gas would cost $500 million/month.

The government has formulated a policy under which it would be self-sufficient in gas within 3 years, he added.

Asim said Pakistan now has a shortfall of 700 MMcfd of gas, up from 500 MMcfd last year. He criticized the previous administration for not exploring indigenous gas during the last 7 years as the demand for gas increased. He said 235,000 consumers, 770 CNG stations, and 4,700 commercial connections were added last year. But there was no increase in the gas production.

Pakistan has low reserves of gas; increasing production with no extra reserves being discovered will reduce the time the gas will last. For strategic reasons it is important to have some in reserve, ie in the ground.

 

[Neo]

Tarin for enhancing tax-to-GDP ratio ​

Sunday, January 18, 2009

KARACHI: Advisor to PM on Finance Shaukat Tareen on Saturday underlined the need for enhancing tax to GDP ratio to 18 to 20 per cent to achieve 7 to 8 per cent growth in the economy.

He was speaking at an excellence awards ceremony for top taxpayers of Large Taxpayers Unit (LTU) here on Saturday.

Chairman Federal Board of Revenue (FBR), Ahmad Waqar, Governor State Bank of Pakistan (SBP) Salim Raza, Fauzia Wahab MNA and Senator Ahmed Ali were also present on the occasion.

Tareen said that other rising economies like China, Turkey and India have enhanced their tax to GDP ratio beyond 20 per cent to maintain higher GDP growth. He said China has maintained a tax to GDP ratio of 21 per cent in the past several years while Turkey is maintaining it at 28 per cent to accomplish higher economic growth.

He pointed out that despite higher revenue collection rising from Rs300 billion to Rs1.3 trillion, tax to GDP ratio has declined from 13.9 per cent in 1996 to 9.6 per cent in 2007-08.

He said that the government, which collects higher revenue, can look after the welfare of its people far better. “On the contrary, revenue collection in Pakistan has fallen short, forcing the economic managers to resort to bank borrowing and thus fueling inflation and crowding out the private sector”, he added.

He said the government was following a nine-point agenda to stabilise the macro economic indicators and on top of the list is “to increase tax to GDP ratio” in the next five to seven years. “I have asked FBR to sit with their stakeholders and analyse the needs of the customers (taxpayers) and also their employees so that tax payment becomes a hassle free job,” he noted.

The Advisor praised the tax payers as well as tax collectors at the LTU for doing a wonderful job for the country.

Later, while talking to the media, he said that profiteers were responsible for price hike in the country. He said the government was trying to decrease prices in the country, adding that petrol prices have been lowered and CPI has also come down.

He pointed out that he has convened another meeting of the local government to seek what else the magistrate wants to check the prices on. FBR chairman said that the merger of direct taxes with sales tax and federal excise into Inland Revenue Services was a major initiative of the present government to enhance tax collection. DG LTU Faiyaz Khan in his welcome address highlighted the performance of the LTU in tax collection.

Later, the Advisor distributed the excellence awards among major taxpayers including PPL, PSO, Lakson Tobacco, NBP, Unilever Pakistan, National Insurance Company, CAA, Pak Suzuki, Pakistan Steel, Pakistan Beverage Ltd, Glaxosmithkline Pakistan Ltd, etc.

 

[Neo]

http://www.dailytimes.com.pk/default.asp?page=2009\01\17\story_17-1-2009_pg5_2​

* Drop in inflation caused by plunge in international crude and commodities prices​

ISLAMABAD: Ministry of Finance has projected that due to the different measures taken by the government and State Bank of Pakistan inflation in the country would come down to 9.5 percent by the end of June 2009, according to the 'Inflation Outlook 2008-09' prepared by the ministry.

Based on the Inflation Outlook 2008-09 projection the interest rate is expected to remain stable and would come down when the core inflation comes down to 15 percent that stood at the end of December at 18.8 percent. Ministry of Finance on last Friday had informed the National Assembly Standing Committee of Finance that incase core inflation drops to a level of 15 percent from 18 percent there might be reduction in interest rate.

According to a projection presented Economic Coordination Committee (ECC) of the Cabinet meeting held on January 13, 2009, inflation was measured at 24.3 percent at the start of July of the current fiscal year 2008 as compared to inflation of 6.4 percent in July 2007. In the month of August 2008, inflation was at 25.3 percent as against 6.5 percent in August 2007. It was 23.9 percent in September 2008 as compared with 8.4 percent in the same month of 2007. Inflation was measured at 25 percent in October 2008 as against 9.3 percent during the same month of last year. In the month of November 2008, inflation stood at 24.7 percent as compared to 8.7 percent in the same month of 2007 and in the month of December 2008, inflation was seen at 23.3 percent as compared with 8.8 percent in the same month of 2007.

According to the Inflation Outlook covering the period of January-June of 2009, the inflation is expected to be in the range of 21.3 percent in the current month of January 2009 as against 11.9 percent in January 2008. The authorities expect that inflation would come down to 20.9 percent in the month of February 2009 as compared with 11.3 percent of February 2008. In the month of March 2009 inflation would further come down to 17.5 percent as against the inflation of 14.1 percent during the same month of last year. Inflation would further decrease to 14.3 percent in the month of April 2009 as against inflation measured at 17.2 percent in April 2008. In the month of May 2009 inflation is expected to come down further to 11.5 percent as compared to 19.3 percent in May 2008 and finally inflation would be settling at 9.5 percent in the month of June 2009 as against 21.5 percent in June 2008.

In the month of December 2008, inflation based on Consumer Price Index (CPI) was recorded at 23.3 percent, Wholesale Price Index (WPI) at 17.6 percent, Sensitive Price Index (SPI) at 25.8 percent and Core Inflation at 18.8 percent.

The CPI based inflation, after hitting 25 percent in the first quarter of current financial year, eased during the month of December as it was up 24.43 percent during the month over the corresponding period of previous year.

After peaking to 25 percent in the first quarter of the current financial year, the highest in three decades, the drop in the growth of inflation has been caused by the plunge in the international crude and commodities prices, which impacted the domestic prices.