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Nine schemes of AJP underway in Balochistan
ISLAMABAD (April 09 2009): Work on nine schemes in various districts of Balochistan is in progress under Access to Justice Programme (AJP) and a number of schemes under the same programme have already been completed. According to Access to Justice Programme Secretariat, in Balochistan, considerable progress has been shown in the province by completion of work on a number of schemes under Access to Justice Programme.

As part of the financial plan, Balochistan was entitled to a share of Rs 1140.8 million as per NFC Formulae. Out of this entitlement the cumulative budgetary allocation made so far is Rs 1056 million and up till now Rs 1008 million have been released by Access to Justice Programme for utilisation in the province.

Work on the Programme Loan schemes is in process while the majority of projects in various justice sector departments have been completed successfully. Cost distribution percentage of various departments indicates that major portion of the amount is being spent on reforms in judiciary (30%), prisons (31%) and police (27%).

Remaining 5 percent of cost has been allocated to complete some initiatives in Law Department, Prosecution Department and the office of the Ombudsman. In judiciary total number of eighteen schemes with an estimated amount of Rs 258 million are being spent on infrastructure and capacity building projects.

As part of this plan, 35 court rooms and buildings, 27 residences for judicial officers, 16 litigant sheds with amenities for litigants, one judicial complex, one bar room and land acquisition have been made possible.

Work on all the nine schemes has already completed with an expenditure of Rs 133 million. Estimated expenditure of Rs 125 million is being incurred on ongoing schemes in the province. The Police Department with its provision of Rs 282 million has focused on establishment of new Police Lines, barracks and residential complexes.

The projects worth Rs 165 million have been completed where as work on Rs 118 million projects are going on at various districts in Balochistan. In Prison Department Rs 247 million are separately reserved for the construction of 10 barracks and 12 death cells, 54 residences for jail staff. One facility for juvenile offender is also in the offing as part of AJP schemes.

Balochistan High Court has taken many steps to reduce the number of pending cases and to ensure that the legal system can dispense justice without undue delay. Availability of resources under the AJP will go a long way in removing the problem areas in dispensation of justice.

Business Recorder [Pakistan's First Financial Daily]
 
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Stabilising border region: Pakistan urges $30 billion Marshal Plan
WASHINGTON (April 09 2009): Pakistan has called for a $30 billion Marshal Plan to bolster socio-economic development of people as a way to wipe out al Qaeda threat in the Pak-Afghan border region and help win hearts and minds of the local population. The cost to the West for such a plan in the high-stakes region was negligible compared to that of rescuing failing banks and corporations, Pakistans ambassador to the United States told The Washington Times.

"Despite the economic issues that the world is facing, the cost of a Marshall Plan for Afghanistan and Pakistan is going to be minuscule (compared) to the bailouts being given to American car companies and AIG (American International Group)," Husain Haqqani said. The plan, he advocated, will help bring stability to the region as well as blunt anti-American sentiment.

"And the impact in terms of American security and in longer term stability of the world in a very precarious region will be far greater. Pakistan has the will to fight terrorists, it needs the means and the United States should provide those," he underlined.

Pakistan needs $5 billion a year for the next five years from the United States and its allies to build local law enforcement of about 100,000 men, strengthen counter-insurgency against the Taliban and al Qaeda and persuade average Pakistanis that the US-led war on extremism is Pakistans war and essential for the countrys survival, he argued.

The ambassador denied allegations against Pakistans intelligence organisation, ISI, that it was helping the Taliban. He said the US public diplomacy in the Muslim world had lagged under the Bush administration and praised Obamas efforts to reach out to Muslims.

"We are glad that President Obama has taken the initiative," Haqqani said. "The more President Obama and his team reach out, the easier it will be to mobilise people against the extremists and terrorists."

The envoy cautioned, however, that it would take time to change attitudes as many remember that the US supported Pakistan during the fight against Soviet occupation in Afghanistan, then deserted us. "This is not a switch that can be turned on and off," he said. "It takes a while for the counter-narrative to be accepted."

Business Recorder [Pakistan's First Financial Daily]
 
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Government to implement uniform power tariff for all consumers
ISLAMABAD (April 09 2009): Advisor to Prime Minister on Finance Shaukat Tarin said on Wednesday that government would impose tax on stock market, real estate and agriculture sectors in the next three years to broaden the tax-base and raise tax to GDP ratio.

Addressing Islamabad Chamber of Commerce and Industry (ICCI) he said that government would end the power tariff difference between domestic, commercial and industrial consumers and implement uniformed power tariff for all types of consumers.

He said that why should be a difference in power tariff between different types of consumers. He said that government would also impose tax on stock market, real estate and agriculture sectors in the next three years to enhance the revenue collection. He also refused to resume amnesty scheme for the legalisation of the undocumented assets and income.

He said that inflation was at 25 percent in October last year that would be reduced to single digit by July and August. At present the inflation had been reduced to 17-18 percent that was the remarkable success of the current government. The banks are receiving liquidity and banking sector was stable despite the economic recession. He said that government was focusing on reducing the inflationary rate that would result in decreasing the interest rate.

The growth rate had been estimated to remain at 2.5 percent during the current fiscal year and if government had focused on growth rate by borrowing, the inflation had surged up to 35 percent from 25 percent. He said that inflation would further come down during the next year that would help increase in growth rate.

Government wanted to create low inflationary environment, he said adding that world is ready to lend money but government wanted to remove structural imbalances. He said that former government had shown high growth rate that was due to borrowing. It was due to policies of former government that present government had issued Term Financing Certificates (TFCs) worth Rs 80 billion.

"Our main focus is on increasing the revenue and main burden was on manufacturing sector, he said adding that government would bring all other sectors in tax net to enhance the revenue collection. He said that government would end the cross subsidy in the power sector and power tariff differences between different consumers would be abolished.

He further said that government would replace general sales tax with value added tax (VAT). Government intends to impose it on retail level excluding the food items.

Government will focus on manufacturing sector and was working on Corporate Rehabilitation Act for revival of sick industrial units and textile sector will be given incentives to enable it to compete the products of other countries of the world. Government can bring the foreign exchange two sources including exports and remittances. Government will set up export zones in the country. He admitted that power load shedding had affected the industry and assured to end load shedding by end of the current calendar year.

Government is focusing on hydel, coal and wind resources to generate the electricity. Government has formed integrated energy plan to exploit these resources. He informed that country had unexplored gas reserves of 150 trillion cubic feet and had explored only 30 TCF. Government had targeted drilling of 150 to 200 wells in one year. Pakistan had also coal reserves of 180 million tons and urged the federal and provincial government to end differences on the utilisation of coal.

He also rejected the bail out package for the industry and stressed on the restructuring on different industrial sector that could contribute to the economy on the long-term basis. Government had formed that textile group that would hold meeting every month to propose measures for the improvement of the textile industry. He said that government was collecting petroleum development levy (PDL) and there was spending on defence, debt servicing and development. Pakistan was also facing pressure on east and west. Government will reduce the price of diesel when it finds a space in this regard.

He also agreed with the ICCI to form 10-year industrial policy. He said that government would focus on agriculture sector that can grow the economy and he regretted that government imported 15 to 17 lac tons wheat last year. Government will improve the water resources and ensure market access to the farmers.

He regretted that farmers were not given the announced support price and government would procure 6.5 million tons wheat. Government will also maintain 1-1.5 million tons strategic reserves of wheat to intervene the market if private sector exploits the situation.

He further said that government would also launch a programme for the poor people. He said that five million people are living below the poverty line and Rs 1000 per family cash support is a lip service. Government will launch the training programmes for the poor to give vocational training enabling them to get employment. Government will also introduce medical insurance programme for the poor. President ICCI Mian Shaukat Masud said that power load shedding had hurt the industry and urged to take measures to overcome the load shedding in the country. He said that SME sector is constrained by financial and other resources due to which it had not developed its full potential.

He said that oil prices had declined almost by 70 percent but government had not passed on it to the consumers. He demanded to reduce the diesel price.

Business Recorder [Pakistan's First Financial Daily]
 
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SECP decision leads to panic selling
KARACHI (April 09 2009): Panic selling was witnessed at Karachi share market after the SECPs decision to discontinue CFS MK-II and deliverable futures products and the benchmark KSE-100 index declined by 295.58 points (3.87 percent) to close at 7,340.30 points level on Wednesday, analysts said.

"The SECP decision created negativity at the share market, as the regulator announced to eliminate the CFS MK-II without introducing any alternate product to fill the gap as per the investors expectations", analysts said. On the other hand, a correction was also expected as the market had witnessed a continuous bull run during the last couple of weeks with healthy gains, they added.

After opening in the negative zone the index briefly visited the positive territory on support of dips. However the intense selling pressure dropped the index in the red again to hit 7,316.02 points intra-day low level.

The market witnessed healthy trading as the volumes at ready counter surged to 21-month high level of 493.090 million shares as compared to 478.944 million shares traded on Tuesday. The overall market capitalisation declined by Rs 86 billion to Rs 2.214 trillion. Out of the total 374 active scrips, 251 closed in the negative and 117 in the positive while the value of 6 scrips remained unchanged.

TRG Pakistan was the volume leader with 49.487 million shares and gained Re. 0.10 to close at Rs 2.03. BoP increased by Re. 0.77 to close at Rs 15.28 with 34.831 million shares.

Jahangir Siddiqui Co lost Rs 1.96 to close at Rs 37.24 with 27.018 million shares. Pakistan PTA Limited closed at Rs 3.14, up by Re. 0.01 with 22.515 million shares. Zeal Pak gained Re. 0.10 to close at Re. 0.61 with 22.023 million shares.

NIB Bank lost Re. 0.67 to close at Rs 6.14 with 21.767 million shares. Pervez Ahmed increased by Re. 0.98 to close at Rs 8.01 with 19.390 million shares. DS Industries Limited gained Re. 0.42 to close at Rs 5.61 with 16.620 million shares.

NBP declined by Rs 5.16 to close at Rs 98.08 with 15.829 million shares. DG Khan Cement lost Rs 1.38 to close at Rs 26.32 with 15.490 million shares. Bata (Pak) and Lakson Tobacco were the highest gainers and gained Rs 36.44 and Rs 10.66 to close at Rs 800.84 and Rs 224.04 respectively while Unilever Pakistan and Nestle Pakistan were the worst losers and lost Rs 64.67 and Rs 57.00 to close at Rs 1830.00 and Rs 1093.00 respectively.

Ahsan Mehanti at Shehzad Chamdia Securities said that intense selling was witnessed on the first day after the SECP decision to discontinue CFS MK II and deliverable future products from the stock exchange. The investors expectations of increase in T-bill cut off yields negatively affected retail and institutional investors interest in the market. Fall in oil prices in the international market also affected investors sentiment negatively, he added.

Khurram Schehzad at Invest Capital and Securities was of the view that the major correction at the share market was only because of rumours of increase in T-bill cut off yields. He said that the SECP decision to discontinue CFS MK-II was almost neutral for the market, as investment under CFS was already very low.

Business Recorder [Pakistan's First Financial Daily]
 
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Textile sector earnings grew 23 percent in first half of fiscal year 2009
KARACHI (April 09 2009): Textile sector of Pakistan depicted strong earnings growth of 23 percent in the first half of FY09 as compared to the corresponding period last year. The composite sector, which accounts for approximately 67 percent of the entire textile sector market capitalisation, posted remarkable earnings growth of 61 percent.

Moreover, weaving sector came back into profits whereas the spinning sector plunged into losses when compared to the corresponding period last year. In the analysis, 24 companies were taken from the composite sector - six weaving companies and 31 spinning units representing 92 percent, 95 percent and 80 percent market capitalisation of their respective sectors.

Amid rise in export-based revenue due to depreciating rupee (21 percent in the first half of FY09), net sales of the textile sector jumped by 22 percent to Rs 127 billion. This resulted in improved margins, which rose by 377bps despite high cotton prices (up 21 percent) during the period, Atif Zafar, an analyst at JS Global Capital said.

However, a 100 percent increase in financial cost to Rs 12.4 billion brought down earnings to Rs 3.4 billion, still up 23 percent on year-on-year basis. Financial cost rose on the back of higher borrowing rates as 6-month Kibor during the period averaged 14.59 percent up 458bps, Atif added.

The composite sectors impressive earnings growth of 61 percent was largely driven by improving gross margins, which increased by 451bps. Due to its export orientation, depreciating rupee boosted the rupee-based revenue of the sector, which increased by 26 percent to Rs 84 billion. Its impact on the bottomline was however impaired by 105 percent increase in finance cost to Rs 8.5 billion.

Weaving sector, which was in losses in the first half of FY08, recovered to post earnings of Rs 52 million. The sector was benefited the most from jump in gross margins, which rose by 538bps. Financial cost of Rs 485 million, up 43 percent from last year, however diluted the earnings of the weaving sector.

In the first half of FY09, spinning sector plunged into losses of Rs 783 million as against profits of Rs 343 million in the corresponding period last year. Though gross margins rose by 152bps, 102 percent rise in financial cost dragged the earnings of the spinning sector into the red zone, he said.

Business Recorder [Pakistan's First Financial Daily]
 
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Rice exports increase to $1.55 billion
KARACHI (April 09 2009): The countrys rice exports have increased to $1.55 billion in the current fiscal year from July 2008 to April 05, 2009. "Despite financial crisis, global economic recession and heavy competition in the international markets due to bumper crop in almost all rice growing countries, Pakistani rice exports showed a tremendous increase", local rice exporters said.

According to official figures, Pakistan exported a total of 20.816 million tons rice of different varieties to various countries across the globe in this period. Out of which, the export of non-basmati rice variety increased to 14.238 million tons worth $770 million, while 0.657 million basmati rice worth $780 million were exported in the first nine months of the current fiscal.

Abdul Rahim Janoo, Chairman Rice Exporters Association of Pakistan (Reap) told Business Recorder on Wednesday that the rice exports is expected to cross $2.2 billion mark by the end of June this year as the export of basmati variety has just started from March. Pakistani rice exporters have orders to export basmati rice in the remaining period of current fiscal.

"We will be able to achieve the landmark of $2.2 billion of rice exports this year", he added. He pointed out that the rice export is the only growing sector, as the countrys rice exports have tremendously increased to this level from a meagre exports of only $300 million before privatisation of rice trade in the country.

"We are working to explore new markets and to recapture our traditional markets to further increase our exports and to earn more foreign exchange for the country", he added. In this regard, Reap has planned to hold a "Biryani Festival" in major cities of Saudi Arabia to target Ramazan and Hajj season.

He said that the government wants to increase countrys exports to earn more foreign exchange, however, according to him some bureaucrats are not ready to cooperate with the exporters and usually create hurdles. "We will discuss this issue with the Federal Commerce Minister Makhdoom Amin Fahim in a meeting to be held in next two days", he added.

Business Recorder [Pakistan's First Financial Daily]
 
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Pakistan to participate in fruit, vegetable show in London
MULTAN (April 09 2009): Pakistan will be among a large number of countries participating in World Fruit and Vegetable Show taking place in the British capital in October this year, Syed Zahid Hussain Gardezi President of Mango Groweres Association (MGA) said here on Wednesday.

He said that two-day exhibition on October 21 and 22 at the Excel Centre in London Docks land will bring exhibitors of all types of fruit and vegetables from around the world, to meet buyers from retail, wholesale and food-service, predominantly from the UK market but also from Western Europe.

Pakistan participated in 2007 edition but the number of entries at the last years show was considerably less due to various factors including recessive trends. According to the organisers, Pakistan Horticulture Development and Export Board, is among several bodies and regions assisting the organisers with the creation of pavilions, or are available to help with language and communication. A heavy rain lashed the region here tonight, affecting standing wheat crop and mango orchards. Wheat is at a crucial stage of ripening and rain is very injurious to it, stated agri-experts and farmers.

Zahid Gardezi said the plants are bearing fruit these days and due to rains the fruit will be shed and the yield would lower. A landowner Saad Kanju said that he has two acres of wheat, which is ready for harvest. However, he said that due to rain the harvesting process is in difficulty.

He said rains would affect the size of yield as well as quality and colour of the grain. Mushtaq Ahmed, a cattle farmer, said that if rains fall these days the husk (Bhusa or Toori) which is an integral part of the cattle food will be blackened and its taste would also be affected, making it unpalatable for the animals.

Business Recorder [Pakistan's First Financial Daily]
 
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Siemens rolls out first local transformer of 220KV
KARACHI (April 09 2009): The first locally manufactured 220 KV transformer rolled out of Siemens Industrial complex in SITE on Wednesday. This was a landmark moment for the power industry not only in Pakistan, but the entire region, a senior official of Siemens Pakistan said.

He stated that the first transformer was dispatched to Wapda network after a simple ceremony attended by Wapda and Siemens officials. Saleem Arif, advisor to Pepco, speaking on the occasion congratulated Siemens on reaching this milestone.

He said that we expect power demand to rise substantially in the coming years and now we can depend on locally produced equipment, which was being imported from abroad. The Managing Director of Siemens Pakistan, Sohail Wajahat Siddiqui termed the roll out of this the first power transformer of 220 KV in the history of Pakistan, as a historic moment and a landmark in the industrial history of the country.

He said this roll out proved that the hard working people of Pakistan can achieve any target, if they are provided with the resources, know-how and positive working environment. He said that Siemens has always set landmarks like being the first to export substantial quantities of engineering goods from the country providing a stable backbone for exports from the country.

Further, he said the local manufacture of this huge transformer will not only save foreign exchange, but also earn huge amounts of foreign exchange for the country and help develop the power sector of the country. Sohail praised Wapda for its efforts to encourage local manufacturing and said that without such encouragement, it would not have been possible for the local power engineering industry to grow.

Business Recorder [Pakistan's First Financial Daily]
 
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ARL to build clean autofuel secondary units
SINGAPORE (April 09 2009): Attock Refinery Ltd (ARL) will start erecting a new 12,400 barrels per day (bpd) diesel hydrotreater and an isomerization unit at its refinery before end-June to produce cleaner autofuels, an industry source said on Wednesday.

The hydrotreater is used for removing sulphur from diesel produced at the 40,000-bpd refinery in Rawalpindi, while the isomerization unit helps boost the octane level and reduces benzene and olefins in gasoline. This moves enable ARL to move to Euro II emission standards, which limit diesel sulphur content to 0.05 percent.

"It will take about 30 months before the new units can become fully operational," he said. The refinery is currently running at 37,500-bpd capacity as a 5,000-bpd crude unit has been shut for maintenance last month. "The unit is expected to start up on April 30 (2010)," he added.

The refinery is also expected to restart a gasoline-making unit on April 10, following a routine maintenance, which started on March 15. The three-week shutdown of the reformer has affected domestic supplies, causing Pakistan State Oil to continue sourcing for spot cargoes from the market to plug the production gap.

Business Recorder [Pakistan's First Financial Daily]
 
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THE RUPEE: dollar higher
KARACHI (April 09 2009): Falling trend was seen on the currency market on Wednesday as the rupee failed to retain its overnight levels due to strong demand for dollars, dealers said. On the interbank market the rupee was down against dollar, losing seven paisa for buying at 80.60 and dropping 10 paisa for selling at 80.65, they added.

In the third Asian trading yen rose as falls in share prices and worries about upcoming earnings results for big US companies prompted investors to flock to its perceived safety. The yen showed limited reaction to news that Japans current account surplus halved in February from a year earlier as the global financial crisis took its toll on Japanese exports.

OPEN MARKET RATES: The rupee shed five paisa against dollar for buying at 80.60, it also lost 10 paisa for selling at 80.75, they said. The rupee maintained its recovery in terms of euro, gaining Rs 1.85 to Rs 105.35 and Rs 106.35 for buying and selling respectively, they said.

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Open Buying Rs 80.60
Open Selling Rs 80.75
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Interbank Closing Rates: Interbank Closing Rates For Dollar On Wednesday.

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Buying Rs 80.60
Selling Rs 80.65
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=================================================================
Repo Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 13.75 14.90 13.90 14.90 14.36
1-Week 13.25 13.50 13.50 13.75 13.50
2-Week 12.75 13.25 13.15 13.50 13.16
1-Month 12.50 13.00 12.90 13.20 12.90
2-Months 12.00 12.25 12.25 12.40 12.23
3-Months 11.90 12.25 12.30 12.50 12.24
4-Months 12.00 12.40 12.30 12.60 12.33
5-Months 12.00 12.40 12.30 12.60 12.33
6-Months 12.10 12.45 12.35 12.65 12.39
9-Months 12.20 12.50 12.40 12.75 12.46
1-Year 12.25 12.60 12.50 12.75 12.53
=================================================================
Call Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 14.00 14.90 14.25 15.00 14.54
1-Week 13.50 14.00 13.75 14.50 13.94
2-Week 13.00 13.50 13.25 13.75 13.38
1-Month 13.00 13.50 13.40 13.75 13.41
2-Months 13.00 13.40 13.25 13.50 13.29
3-Months 13.00 13.40 13.25 13.60 13.31
4-Months 13.00 13.50 13.30 13.60 13.35
5-Months 13.00 13.50 13.40 13.60 13.38
6-Months 13.00 13.60 13.50 13.75 13.46
9-Months 13.20 13.75 13.50 14.00 13.61
1-Year 13.30 13.75 13.40 14.00 13.61
=================================================================
RUPEE IN LAHORE: The Pak rupee marginally improved its value by five paisa on buying side while it remained unchanged on the selling side in relation to the US dollar in the kerb market on Wednesday. According to the currency dealers, the dollar witnessed slight increase in its supply that helped rupee recovery.

The dollar was traded at Rs 80.80 and Rs 81.10 on buying and selling sides as compared to overnight closing of Rs 80.85 and Rs 81.10, respectively. However, the rupee remained under pressure and further depreciated its value against the pound sterling. The pound was purchased and sold at Rs 117.50 and Rs 119.00 against the Tuesday closing of Rs 116.50 and Rs 118.00, respectively.

RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar further increased by 10 paisa against the rupee at the open currency markets of Islamabad and Rawalpindi on Wednesday. The dollar opened at Rs 80.60 (buying) and Rs 80.70 (selling) against the last rate of Rs 80.50 (buying) and Rs 80.60 (selling).

It did not observe further change in the evening session and closed at Rs 80.60 (buying) and Rs 80.70 (selling). Pound Sterling opened at Rs 116.80 (buying) and Rs 117.80 (selling) against the last rate of Rs 115.00 (buying) and Rs 116.00 (selling). It did not observe further change in the second session and closed at Rs 116.80 (buying) and Rs 117.80 (selling).

Business Recorder [Pakistan's First Financial Daily]
 
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Computer industry witnesses 50 percent decrease in business
ISLAMABAD (April 09 2009): The computer industry has witnessed over 50 percent decrease in its retail/vendors business, following recent terrorist attacks in various parts of the country, says latest computer sector data issued here Wednesday.

The Pakistan Computer Association (PCA) on Wednesday convened a meeting here to discuss the negative implications of the current law and order situation on the computer business. The meeting shared the data compiled on national basis to ascertain the impact of law and order situation on the computer industry.

Yousaf Jamal, Senior Vice President of PCA Central while chairing a meeting informed the participants about the latest statistics that show a 50 percent decline in computer business after the recent spree of terror in the country. He said that computer industry, which was already confronting with a fragile business environment, was now struggling to survive for its very existence. The acts of terrorism in various parts of the country have badly hampered the business activities.

The SVP of PCA said that Pakistan has already lost sufficient chunk of foreign/domestic investment and business activities due to rising phenomenon of terrorism and bomb blasts is forcing many investors and businessmen to look for safe destination for their investment. He said that the agonising incidents will act as a demoralising factor for prospective investors who will desist from considering Pakistan for investment ventures.

Yousaf Jamal called upon the government to take all possible measures and equip security apparatus with better technology, equipment and tools to forestall such incidents effectively and control the law and order situation so that normal business activities in the country may be revived.

Business Recorder [Pakistan's First Financial Daily]
 
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Hidden assets: FBR proposes new valuation benchmarks
ISLAMABAD (April 09 2009): The Federal Board of Revenue (FBR) has proposed new valuation benchmarks for unexplained and undeclared immoveable property covering open plot, agricultural land and constructed immovable property for taxation purposes.

The FBR has proposed amendment in the Income Tax Rules 2002 through a notification issued here on Wednesday. The amendment has explained valuation procedure for undeclared immoveable property under section 111 of the Income tax Ordinance, 2001, which is related to the unexplained income or assets.

Under the proposed rules, agricultural land value will be determined according to the provincial revenue record and value of constructed immovable property will be determined at the fair market value or value fixed by the District Officer (Revenue), whichever is higher. Upon detection by the tax authorities, open plots would be valued according to the District Officer Revenue or provincial authority taking into account the authorised stamp duty rates.

According to the proposed rule 228 in the Income Tax Rules, the valuation of immovable property for the purposes of section 111 of the Income Tax Ordinance will be taken in the following manner: In the case of open plot, the value determined by the development authority or government agency on the basis of the auction price in respect of similar plots in the area where the plot in question is situated or in case where such value is not determined, the value fixed by the District Officer (Revenue) or provincial authority, authorised in this behalf for the purposes of stamp duty.

In the case of agricultural land, the value equal to the average sale price of the sales recorded in the revenue record of the estate in which the land is located for the relevant period or time; or in the case of constructed immovable property, value will be determined at the fair market value as defined in section 68 or the value fixed by the District Officer (Revenue) whichever is higher.

According to tax experts the government had allowed existing as well as new taxpayers to get legalised by paying 2 percent investment tax by declaring their unexplained or hidden assets by December 31, 2008. Now, it seemed that the government may launch a drive to detect hidden or unexplained immoveable property for realising due taxes from the defaulters according to the proposed amendments in the income tax rules.

Business Recorder [Pakistan's First Financial Daily]
 
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Punjab expects record wheat yield
LAHORE: The Punjab Agriculture Department expects 17.9 million tons of wheat production this year. But these are initial figures, and the department thinks they can go up to 18.3 to 18.5 million tons.

According to figures finalised by department’s Crop Reporting Wing, the province will have a healthy, possibly record, crop if weather does not hit it at the final stage. The official optimism is based on early sowing, timely rain and extended use of pesticides.

Arif Nadeem, newly-inducted agriculture secretary, says for the first time 71 per cent crop was sown from Oct 25 to Nov 30 -- the ideal time for sowing which will have a positive impact on the yield.

Apart from early sowing, the official optimism is also generated from timely rains, which lessened the effects of water shortage throughout the wheat maturing season.

Similarly, the use of pesticides also remained exceptionally high at 69 per cent, which has saved the crop from many diseases to bring it to a successful conclusion. Though urea crisis plagued the better part of the season, its final off-take did not show any substantial decrease -- keeping the hopes of a better crop alive.

The only negative factor during the entire season was the low consumption of di-ammonium phosphate (DAP). But with so many positive factors, this single factor would not make much of the dent, he said.

Weather also remained by and large helpful, with a fog-free January and cool March. This year, there were no usual foggy weeks, and the crop grew up under the full sunlight. The temperature in the month of March also remained under 28 centigrade, which was also helpful for the crop, he said.

The latest rain spell has created some doubts in the minds of department officials, says another employee of the department.

‘One could only hope that strong winds of March are not followed by hail storms in April. Next three to four days, with forecasts of more rains, will be crucial for the health of the crop. But, they would not be able to make any major dent in the crop if weather does not turn out to be wildly crazy. But till then, one could only pray for better weather and good results,’ said the optimist official.

Farmers doubt official claims

Farmers, on the other hand, hotly disputed official claims on wheat production, and said on Wednesday that it would not, in any case, go beyond 18 million tons – some 1.4 million tons less than the target.

They also claimed price crash of Rs60 to Rs90 per 40 kilogramme in the southern belt, and asked the Food Department to start procuring wheat rather than distributing gunny bags only and delaying actual procurement till mid-April in southern Punjab.

In a meeting of the central executive of the AgriForum, the participants said they had conducted a survey of 10 districts in the southern part where price ranged from Rs860 to Rs890, with no where price touching official Rs950 per 40kg.

‘With a drop of 75 per cent in di-ammonium phosphate (DAP), cut in urea consumption by 16 per cent, potash fertiliser by 40 per cent, water shortage of 35 per cent and diesel selling at Rs70 per litre, no one knows how the official sources can claim a record crop in the province,’ said Ibrahim Mughal from the AgriForum.

The forum survey of 10 districts also revealed that average 100 grain weight had gone down by seven to eight per cent in these districts, he said. Under these circumstances, only chronic optimism or ignorance could make claims of high yields, he said.

He said the Crop Reporting Wing of the Agriculture Department was in the habit of making tall claims till the end, received official praises, and furnished technical details of failing to achieve yield targets. The pattern has been too well-entrenched to leave any room for optimism, he said.

‘The country had set a target of 25 million tons, and Punjab, a producer of 80 per cent of the crop, had to produce over 19 million tons to meet the national target,’ says Rao Afsar from Rajanpur. But, Punjab could not go beyond 18 million tons, taking the national figure down to 23 million tons, he said. The country thus faced a shortfall of two million tons as far as its own target was concerned and at least one million tons as far as its national consumption was concerned, he said.

‘The carry over stocks might save its from importing any wheat, but it is time for some SWOT (strength, weakness, opportunities and threats) analysis about how the country, even after sowing wheat on record 22 million acres, is going to miss the target,’ he demanded.

The pesticides consumption has actually gone down to eight per cent this year, and might be one of the reasons for low production, says Bilal Isreal – a wheat grower. The officials of the Crop Reporting Wing must have differentiated between fodder and wheat crop, he said. The lush green fields of fodder could be good for the country but not for wheat. Additional vegetative growth in wheat was counter-productive and would affect the final tally, he said.

Some of the rains were timely, but others were not – as is the case with current wet spell – and have not proven to the beneficial for the crop, he said and added: ‘The farmers are not as optimistic as the Crop Reporting Wing.’

The Food Department agreed to start providing gunny bags to farmers in southern Punjab but would start buying the wheat by mid-April, says Farooq Bajwa of the AgriForum. No doubt that mere distribution of bags would stabilise the price on higher side, but the department should start actual wheat procurement to send a strong message to market that it was there to keep the price at official level, he said.

DAWN.COM | - Punjab | Punjab expects record wheat yield
 
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Pakistan still attractive for FDI, say experts
ISLAMABAD: Experts believe that Pakistan remains an attractive place for foreign direct investment (FDI) despite the global downturn and the impact on FDI inflows to Pakistan would be less severe compared to other countries.

Pakistan will not escape the downturn in world trade and investments but measures should be taken to attract export-oriented FDI that can be a desirable medium-term objective.

‘Pakistan attracts foreign direct investment in the natural resource and energy industries which are less vulnerable to the recession,’ says Special Adviser, South Asia Center and former director Investment Division, UNCTAD, Dr Khalil Hamdani.

Dr Hamdani, a visiting professor at the Pakistan Institute of Development Economics, was delivering a lecture on ‘Foreign Direct Investment Prospects for Pakistan’ at the Planning Commission here.

He urged the government to prioritise education, infrastructure and health sector that could help reduce poverty in the country.

Dr Hamdani said the industrial policy should promote horizontal competitiveness and the government should support services for domestic enterprises.

The SME sector should be provided financing he said, adding that ‘75 per cent SMEs in Gujranwala have never been provided bank loans.’

He urged upon the government to tackle the issues of power outages and said majority of manufacturing units did not have their own power generation capacity, ‘so they shut operations during load shedding hours.’

Dr Hamdani said Pakistan’s large domestic economy would also continue to be attractive to foreign investors, but added that the government should address investors’ confidence.

He was of the view that export base of Pakistan was very low and depended on one industry, saying there was a need to utilise modern technology to make products more competitive.

He suggested that the Ministry of Investment and Board of Investment should target investors from Asia, including the Gulf countries and China.

‘There were challenges as well as opportunities for Pakistan as far as the investment is concerned. There was need to change the mentality from project base investment to creating conditions for investments.’ He said the investors themselves could identify the avenues of investment.

The secretary, Board of Investment (BoI), Tariq Puri said the impact of global downturn was already being felt but foreign direct investment had so far been resilient and the government was ensuring that Pakistan remained attractive.

He said special economic zones were being established and proactive promotion of investment packages were being launched with the support of BoI and other quarters concerned.

The PIDE vice-chancellor, Dr Rashid Amjad, announced that the lecture was an effort by the institute to encourage further research and policy discussion on foreign direct investment and its role in development.

DAWN.COM | Business | Pakistan still attractive for FDI, say experts
 
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WPP plans expansion into Pakistan
By Lina Saigol and Martin Arnold in London

Published: April 7 2009 19:34 | Last updated: April 7 2009 19:34

Pakistan, currently reeling from a run of deadly terror attacks, has received a strong endorsement of its economic prospects from one of the biggest names in the global advertising industry.

Sir Martin Sorrell, the chief executive of WPP, has said his company intends to expand its business in the south Asian country in spite of a growing Islamist insurgency and a fall in economic growth this year.

EDITOR’S CHOICE
Taliban flogging incident imperils peace deal - Apr-04Pakistan bomb near Afghan border kills 50 - Mar-27Pakistan seeks $10bn in foreign aid - Mar-24Guard killed in Pakistan suicide attack - Mar-24Opposition seeks to reduce Zardari’s powers - Mar-19Pakistan exchanges fined for trading curbs - Mar-20“Despite all the political and security issues ... our businesses in Pakistan continue to grow strongly,” said Sir Martin, chief executive of WPP. “We plan to continue to grow there and develop our industry leading position in the country.”

Sir Martin is not alone. Public and private companies, including Antofagasta, the Chilean mining company, and Abraaj Capital, the Dubai-based private equity group, are seeking opportunities in Pakistan. Some small-scale investments, particularly in the energy and infrastructure sector, show companies taking a cautious approach, however.

Analysts claim that economic stabilisation has been one of the bright spots of a year of civilian rule.

The International Monetary Fund gave Pakistan a $7.6bn (€5.7bn, £5.2bn) rescue package at the end of 2008 to help it avoid a balance of payments crisis. The government responded to the IMF’s requests to implement prudent economic policy and cut spending over the first quarter – positive signs ahead of a donors meeting in Tokyo this month where Pakistan is seeking $10bn in assistance over three years.

Last year, a return to civilian rule in Pakistan saw the biggest rise in deals with foreign acquirers in five years. Cross-border activity totalled $8.1bn over these five years. Telecommunications and financials are the most targeted sectors by foreign investors. The two sectors account for 52 per cent and 35 per cent respectively.

Acquisitions by UAE, Singapore and Malaysian investors account for more than half the cross-border deals of the past five years. Abraaj Capital, the Middle East’s biggest private equity firm, agreed a $361m deal to buy half of KES Power, the holding company of Karachi Electric Supply Company.

“Our focus in Pakistan is to purchase defensive assets, like power, infrastructure, distribution, or downstream oil and gas,” said Omar Lodhi, executive director of Abraaj Capital. “We work with them to develop them for sale to strategic groups.”

CDC Group, the UK state-owned private equity group, invested in Pakistan in 2006, putting $40m in the debut fund of Karachi-based JS Private Equity. “With its big and young population, and good commercial history, it is still an attractive investment,” said Richard Laing, chief executive of CDC.

FT.com / Asia-Pacific / Pakistan - WPP plans expansion into Pakistan
 
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