BUSINESS
RECORDER
Tuesday, 13th May, 2014
Budget 2014-15
Rs 2.81 trillion revenue target set
RECORDER REPORT
The government has fixed a Rs
2,810 billion revenue collection
target for the next fiscal year
2014-15, which is 23.1 percent
higher than the downward revised
target of Rs 2,275 billion for 201314.
Sources
toldBusiness
Recorder here on Monday the
government set a target of Rs
2,475 billion for the current fiscal
year
which
was
revised
downward to Rs 2345 billion on
grounds that the budget estimate
was based on an assumption that
the FBR collection would be Rs
2,007
billion
in
2012-13.
The Finance Minister has stated
that as the FBR collection was Rs
1,939 billion instead of the
anticipated Rs 2,007 billion, thus
there was erosion of revenue (Rs
68 billion) from the start of fiscal
year (2013-14). The FBR revenue
collection target has been further
revised downward to Rs 2,275
billion during the third review with
the International Monetary Fund
(IMF) under its Extended Fund
Facility (EFF), which is being
viewed as a challenging target.
The IMF has projected a 3.7
percent GDP growth for next
fiscal year and an inflation rate of
nine percent. The government will
not increase tax rates in budget
and the gap would be narrowed
by reducing tax exemptions and
concessions of around Rs 200
billion granted through SROs.
According to sources, the FBR
has witnessed a 10 percent
reduction
in
customs
duty
collection during 2013-14 due to a
decrease in dutiable imports and
rupee strengthening against the
dollar. At the import stage, the
cumulative sales tax and customs
duty collections are 41 percent
below the 2013-14 budgetary
target. Due to this massive
shortfall of customs duty and
sales tax at the import stage, the
revenue collection target has
been slashed from Rs 2,345
billion to Rs 2,275 billion.
Five leading export-oriented sectors
Relief to be withdrawn
SOHAIL SARFRAZ & TAHIR AMIN
The Federal Board of Revenue
(FBR) will withdraw sales tax,
income tax and customs duty
exemptions granted through the
statutory
regulatory
orders
(SROs) in budget (2014-15)
including major amendments in
SRO.1125(I)/2011 dealing with
lower rates of sales tax (2 to 5
percent) on five leading exportoriented sectors - textile, leather,
carpets, surgical and sports
goods.
Sources
told Business
Recorder here on Monday that Rs
500 billion worth tax exemptions
would be withdrawn in the next 3
years in a phase-wise manner.
Certain exemptions would be
withdrawn in budget (2014-15),
whereas others would be taken
away in phases during the next 3
years.
Sources said that SRO.1125 is
the only major export related
SRO specifically dealing with
export oriented sectors and
applies multiple rates of sales tax
on exports. Under the notification,
2 percent sales tax, 3 percent, 5
percent and 17 percent sales tax
is applicable at different stages.
The
FBR
is
proposing
amendments
in
SRO.1125(I)/2011 to rationalise
tax structure in the upcoming
budget.
The import of textile machinery is
currently covered under the
regime of zero rated custom duty
and sales tax through SRO 809,
however by the end of June this
facility is going to expire and the
government may impose 17
percent sales tax on the import of
machinery.
The government had issued
Technology Up-gradation Support
order 2010 to provide incentives
to
textile
machinery
and
technology to attract investment
in textile sector; this is also going
to expire on June 30, 2014,
sources added. Further textile
policy (2009-14) formulated by
the previous government is also
going to expire on June 30, 2014
and all the schemes under this
policy would stand expired. Sales
tax at the rate of 2 percent is
applicable on yarn, 3 percent on
fabric and 5 percent on garments
which is expected to be revised in
budget
(2014-15).
In budget (2014-15), the FBR is
reviewing
customs
SROs
including SRO.567, SRO.565,
SRO.575, SRO.678, SRO.655,
SRO.656,
SRO.809
and
SRO.693. Sales tax SROs
including SRO.727, SRO.1125,
SRO.549, SRO.575, SRO.551,
SRO.69, SRO.501 and SRO.670
and all SROs relating to income
tax.
The
major
sales
tax
concessionary SROs in 2012-13
were SRO.727(I)/2011 (plant and
BUSINESS
RECORDER
Tuesday, 13th May, 2014
machinery);
SRO.549(I)/2008
(zero percent sales tax on
specific goods); SRO.811(I)2009
(zero-percent sales tax on
polyethylene and polypropylene);
SRO.575(I)/2006
(machinery,
equipment, apparatus and items
including
capital
goods);
SRO.492(I)/2009
(temporary
imports);
SRO.551(I)/2008
(exemption from sales tax on
imports
of
certain
goods);
SRO.863(I)/2007 (zero-rating of
specific
goods)
and
SRO.69(I)/2006 (levy of sales tax
on rapeseed). Under the ongoing
exercise, the FBR is examining
SRO.567(1)/2006; rationalisation
of customs duty on Pathalic
Anhydride (PA) industry; SRO.
575(1)/2006; SRO 809(1)/2009;
SRO
678(1)/2004;
SRO.565(1)/2004;
retaining
entries under SRO 565(1)/2006;
explanation to be added under
SRO 565(1)/2006 and other
proposals
related
to
SRO
565(1)/2006.
The
FBR
is
examining
amendment in SRO 565(1)/2006
(S.No 2) - change in description
of components; amendment in
SRO 565(1)/2006 (S.No 3) change
in
description
of
manufactured goods; amendment
in SRO 565(1)/2006 (S.No 4) - to
exclude "Fin-Type Evaporator" for
the
manufacture
of
refrigerators/visicoolers;
amendment in SRO 565(1)/2006
(S.No 5) - to add "retarder / speed
reducer without motor" for the
manufacturing of semi-automatic
washing machines; amendment
in SRO 565(1)/2006 (S.No 6) - to
incorporate detailed description of
input materials used in the
manufacturing
of
car
air
conditioners; amendment in SRO
565(I)/2006 (S.No 9) - change in
description
of
manufactured
goods; amendment in SRO
565(1)/2006 (S.No 20) - addition
of raw material; amendment in
SRO 565(1)/2006 (S. No 64) PVC
manufacturing
industry
interpretation and application of
SRO; amendment in SRO
565(1)/2006 (S. No 74) - to add
and correct certain entries;
amendment in SRO 565(1)/2006
(S.No 88) - to delete CRC steel
coils from welded steel pipes /
tubes; amendment in SRO
565(1)/2006
add
special
condition for the manufacturers of
CRC steel coils from HRC steel
coils (S.No 91); amendment in
SRO 565(1)/2006 (S. No 106) - to
delete locally manufactured raw
materials.
The
FBR
is
examining
amendment in SRO 655(1)/2006 export of automotive components
& assemblies; amendment in
SRO 656(1)/2006 - revision of
minimum
in-house
facilities;
amendment in SRO 656(1)/2006 reduction in duty on tyres for
vehicles of heading 87.01 under
HS code 4011.2090 to 5%;
amendment in SRO 499(1)/2009 imports v/s local assembly of
HEVS; amendment in SRO
693(1)/2006 & customs tariff to
add the parts in respect of the
new vehicles; amendment in SRO
693(1)/2006 & customs tariff levy of additional duty on the
import
of
localised
parts/components
of
cars,
motorcycles
&
tractors;
amendment in SRO 693(1)/2006
and customs tariff - protection to
locally manufactured road wheels
and
amendment
in
SRO
693(1)/2006.
Pasha's response to MoF rebuttal
RECORDER REPORT
Apropos a rebuttal issued by the
Finance Ministry on May 10 to Dr
Hafiz Pasha's statement that the
government has already signed
or
will
be
signing
loan
agreements, amounting to $52
billion for receipt over the next
decade, the following is Dr
Pasha's
response
to
MoF
rebuttal. "This statement was
made by me at the event on
budget Proposals for 2014-15
organised by the Institute for
Policy Reforms in Islamabad. The
objective was to caution to the
Government to ensure long-term
external debt sustainability and to
avoid falling into a 'debt trap'.
"The rebuttal states that the
'comments and conclusion were
based on inaccurate facts and
figures'. I would like to clarify that
the amount of $52 billion was
based
on
discussion
and
agreements of the Government
with donors which are already in
the public domain. This includes
$6.6 billion from the IMF; $2
billion through the Eurobonds;
$12 billion from the World Bank
through the recently announced
Country Partnership Strategy and
the funding of $32 billion by the
Chinese government, announced
after the visit of a high - powered
delegation to China. All this adds
up to $52.6 billion. It is interesting
that the stock of external debt
stood at $52.6 billion on 30th
June of 2013. Therefore, the
Government is in the process of
doubling the external debt.
"This does not include the
borrowing by the SBP from a
consortium of commercial banks
this year, the magnitude of which
has not been revealed. Also,
there may be some borrowing
from foreign currency accounts
(FCAs) for import financing. "The
rebuttal also states that I have
ignored the fact that the
Government is required to repay
over $30 billion in the next ten
years. The point being made is
that the increase in external debt
will be less by this amount. But
the figure of $52 billion does not
include regular inflows of over $2
billion annually from traditional
donors like ADB, IDB, Japan, the
US and the EU countries. This
will take care of bulk of the
repayment liabilities. "The rebuttal
indicates that borrowing is
justified because it 'will be mostly
done for development purposes
BUSINESS
RECORDER
Tuesday, 13th May, 2014
and
balance
of
payments
support'. This is unfortunately not
the case currently in 2013-14.
With a projected fiscal deficit of
5.5% of the GDP, less than 3% of
the GDP will be used for
development. Therefore, 45% of
the borrowing will go towards
financing current expenditure,
which does not enhance the debt
repayment
capacity.
Also, it is stated that 'borrowing
will be on concessional terms.'
The IDA credit from the World
Bank is certainly concessional in
character. But the Eurobonds are
not. They account for less than
4% of the outstanding debt but
will represent over 15% of the
future interest payments on
external borrowing. According to
the Fact Sheet of the IMF, the
borrowing of Pakistan from the
IMF under Extended Fund Facility
of $6.6 billion (equivalent to
42.5% of SDR quota) will have to
be repaid in twelve semi-annual
equal instalments. The lending
rate is tied to the IMF's marketrelated interest rate. There is a
surcharge of 200 basis points on
outstanding credit above 300% of
the quota. Therefore, the IMF
funding is hardly concessional.
"The terms of the Chinese loans
have yet to be negotiated. But if
the funding comes through the
Chinese EXIM bank then it is
likely to be semi concessional in
character, on the basis of a
government-to-government
agreement
for
financing
infrastructure projects. Recent
loans by the EXIM bank to African
and Asian countries have a
repayment period of 15-20 years
and a minimum interest rate of
2%.
The
rebuttal
says
that
'Government is not in violation of
the Fiscal Responsibility and Debt
Limitation (FRDL) Act, 2005'. As
the first year of the PML-N
Government comes to an end
shortly, it will in fact be violating
two important covenants of the
FRDL
act
as
follows:
I. According to the Debt Policy
Co-ordination Office (DPCO) the
total public debt to GDP ratio was
62.7% at the end of 2012-13.
With a projected fiscal deficit of
5.5% of the GDP in 2013-14, this
ratio will fall to 60.7%. Although
the Government is on the right
path, it will still exceed the limit of
60% imposed by the Act.
II. According to the FRDL Act,
there is expected to be a revenue
surplus each year. But, as
highlighted earlier, there is likely
to be a revenue deficit of over
2.5% of the GDP in 2013-14.
The rebuttal makes a reference to
the Medium Term Debt Statement
(MTDS) which was released
recently by the Ministry of
Finance. According to the MTDS,
the public debt to GDP ratio will
fall to 52% of GDP by end of
2017-18. But this does not
include the inflow of large
Chinese
government
to
government loans over the next
five to seven years. This will raise
significantly the public debt to
GDP ratio and probably keep it
above 60% of the GDP. "I urge
the MOF to undertake a proper
exercise of the long- term
external debt sustainability of
Pakistan, before more external
loans
are
sought."
Deemed income of taxpayer
Tax department's addition under section 111
unjustified
RECORDER REPORT
Appellate
Tribunal
Inland
Revenue (ATIR) Lahore has ruled
that the tax department has
illegally made addition under
section 111 of the Income Tax
Ordinance 2001 to the income of
a taxpayer by wrongly applying
accounting
principles
and
interpretation of fiscal laws.
Sources
toldBusiness
Recorder that in a landmark
judgement
of
the
ATIR
applicability of Section 111 of the
Income Tax Ordinance, 2001 has
been
thrashed
out.
The ATIR ruled that it is not the
only compulsory condition that
against each and every liability
there must be some investment
or asset. Expenditures viz-a-viz
assets both can be financed
through a liability. When all the
parties/creditors are registered
taxpayers and all payments have
been routed through crosscheques in accordance with the
provisions of section 73 of Sales
Tax Act, 1990, there is no
justification for the addition u/s
111.
When contacted, a Lahore based
tax lawyer Waheed Shahzad Butt
told this correspondent about the
brief facts and legal implications
of appeals recently decided by
the ATIR. In this case Inland
Revenue Audit Officer, the RTO
Gujranwala in the amended
order, charged to tax the deemed
income by invoking the provisions
of section 111 of the Ordinance.
Action under section 111 of the
Ordinance has been taken solely
on the presumption of law by
misinterpreting the law. In a
taxing statute, one can only look
at the language used in the law,
since there is no room for
presumption in the interpretation
of law. The action of the
department with regard to taxing
the deemed income in the hands
of company was patently illegal.
The ATIR order states "Taxpayer
BUSINESS
RECORDER
Tuesday, 13th May, 2014
is not to be put under fear that he
has to remember scenario of
each and every entry at the end
of year. Rather he has to work
freely and concentrate upon his
business to earn money. If he will
earn something, he will pay to the
government exchequer because
in corporate sector taxpayers
each and every unit is in-fact a
partner of the exchequer for 35%
of their profits. Such like attitude
of Tax department to show the
muscle serves neither public
exchequer nor the economy.
Strange enough that without
considering the clearly worded
order issued by the Hon'ble High
Court a huge amount of Rs
81,684,612/- has been taxed as
deemed
income
solely
by
misapplying the provisions of the
Ordinance which is patently
illegal.
When all of the parties/creditors
are registered taxpayers under
the Ordinance as well as under
the Sales Tax Act, 1990 and all
payments have been routed
through
cross-cheques
in
accordance with the provisions of
section 73 of Sales Tax Act, 1990
and the taxpayer had also
provided
complete
documentation/record relevant to
the purchases and payments
made to the creditors including
ledgers accounts of the parties,
which
clearly
shows
that
payments to the creditors against
the outstanding balances shown
in the ledgers as on June 30,
2010, there is no justification for
the
addition
u/s
111.
The IRAO miserably failed to
identify the nature of investment
or valuable article before making
huge addition u/s 111(1)(b) of the
Ordinance in the hands of
taxpayer company. The law on
the issue is very much clear. The
IRAO by misconstruing the law
has proceeded to add the said
amount into taxable income u/s
111(1)(b), holding the taxpayer as
owner of investment or valuable
article is devoid of any legal
sanction behind it but also it is a
transgression which cannot be
approved and stand the test of
appeal. This bent of mind at the
part of the IRAO reflects poor
appreciation of law and facts
which being based on surmises
and stock phrases does not find
place
in
the
Ordinance.
Even the IRAO does not know the
basic accounting principles that it
is not only compulsory condition
that against each and every
liability there must be some
investment or asset. Expenditures
viz-a-viz assets or investment
both can be financed through a
liability, however, it appears the
IRAO has his own accounting
principles and interpretation of
fiscal laws like Ordinance.
Additions u/s 111 made by the
IRAO are not only vindictive,
capricious, biased but also
patently illegal in the eyes of law,
ATIR
added.
Deemed income of taxpayer
Tax department's addition under section 111
unjustified
RECORDER REPORT
Appellate
Tribunal
Inland
Revenue (ATIR) Lahore has ruled
that the tax department has
illegally made addition under
section 111 of the Income Tax
Ordinance 2001 to the income of
a taxpayer by wrongly applying
accounting
principles
and
interpretation of fiscal laws.
Sources
toldBusiness
Recorder that in a landmark
judgement
of
the
ATIR
applicability of Section 111 of the
Income Tax Ordinance, 2001 has
been
thrashed
out.
The ATIR ruled that it is not the
only compulsory condition that
against each and every liability
there must be some investment
or asset. Expenditures viz-a-viz
assets both can be financed
through a liability. When all the
parties/creditors are registered
taxpayers and all payments have
been routed through crosscheques in accordance with the
provisions of section 73 of Sales
Tax Act, 1990, there is no
justification for the addition u/s
111.
When contacted, a Lahore based
tax lawyer Waheed Shahzad Butt
told this correspondent about the
brief facts and legal implications
of appeals recently decided by
the ATIR. In this case Inland
Revenue Audit Officer, the RTO
Gujranwala in the amended
order, charged to tax the deemed
income by invoking the provisions
of section 111 of the Ordinance.
Action under section 111 of the
Ordinance has been taken solely
on the presumption of law by
misinterpreting the law. In a
taxing statute, one can only look
at the language used in the law,
since there is no room for
presumption in the interpretation
of law. The action of the
department with regard to taxing
the deemed income in the hands
of company was patently illegal.
The ATIR order states "Taxpayer
is not to be put under fear that he
has to remember scenario of
each and every entry at the end
of year. Rather he has to work
freely and concentrate upon his
business to earn money. If he will
earn something, he will pay to the
government exchequer because
in corporate sector taxpayers
each and every unit is in-fact a
partner of the exchequer for 35%
of their profits. Such like attitude
BUSINESS
RECORDER
Tuesday, 13th May, 2014
of Tax department to show the
muscle serves neither public
exchequer nor the economy.
Strange enough that without
considering the clearly worded
order issued by the Hon'ble High
Court a huge amount of Rs
81,684,612/- has been taxed as
deemed
income
solely
by
misapplying the provisions of the
Ordinance which is patently
illegal.
When all of the parties/creditors
are registered taxpayers under
the Ordinance as well as under
the Sales Tax Act, 1990 and all
payments have been routed
through
cross-cheques
in
accordance with the provisions of
section 73 of Sales Tax Act, 1990
and the taxpayer had also
provided
complete
documentation/record relevant to
the purchases and payments
made to the creditors including
ledgers accounts of the parties,
which
clearly
shows
that
payments to the creditors against
the outstanding balances shown
in the ledgers as on June 30,
2010, there is no justification for
the
addition
u/s
111.
The IRAO miserably failed to
identify the nature of investment
or valuable article before making
huge addition u/s 111(1)(b) of the
Ordinance in the hands of
taxpayer company. The law on
the issue is very much clear. The
IRAO by misconstruing the law
has proceeded to add the said
amount into taxable income u/s
111(1)(b), holding the taxpayer as
owner of investment or valuable
article is devoid of any legal
sanction behind it but also it is a
transgression which cannot be
approved and stand the test of
appeal. This bent of mind at the
part of the IRAO reflects poor
appreciation of law and facts
which being based on surmises
and stock phrases does not find
place
in
the
Ordinance.
Even the IRAO does not know the
basic accounting principles that it
is not only compulsory condition
that against each and every
liability there must be some
investment or asset. Expenditures
viz-a-viz assets or investment
both can be financed through a
liability, however, it appears the
IRAO has his own accounting
principles and interpretation of
fiscal laws like Ordinance.
Additions u/s 111 made by the
IRAO are not only vindictive,
capricious, biased but also
patently illegal in the eyes of law,
ATIR
added.
Pakistan repays $145 million of SBA to IMF
RECORDER REPORT
Pakistan has successfully repaid
some $145 million (Special
Drawing Rights of 95.8 million) to
International
Monetary
Fund
(IMF) on account of 31st
instalment
of
Stand-By
Arrangement (SBA) Programme.
Sources said that as per the
payment
schedule,
already
agreed
between
IMF
and
Pakistan, 31st installment of SBA
loan worth SDR 95.837 million
was due on May 9, 2014.
Accordingly, Pakistan paid the
due installment as per schedule
and like previous practices this
installment was also paid by the
State Bank of Pakistan (SBP)
from
its
foreign
reserves.
SBP has confirmed the payment
of 31st installment of SBA on
Friday. "Yes, the central bank has
made a payment of SDR 95.837
million to the Fund as principle
amount of SBA programme," SBP
spokesman said. Sources said
that during this month two SBA
instalments
and
one
SDR
charges were due. Pakistan paid
SDR 72,998 on May 1, 2014 on
account of Net SDR charges,
while SBA installment was made
on May 9, 2014. Similarly, SBA's
32nd instalment amounting SDR
95.837 million is due on May 16,
2014.
"Despite a challenge of low
foreign
exchange
reserves
followed by slow foreign inflows,
timely repayment of IMF loan is a
good indication," analysts said. It
may be mentioned here that
Pakistan
re-joined
IMF
programme in November 2008 to
avoid default as the country's
reserves fell below $6 billion level
in October 2008 followed by
higher current account deficit. Out
of the total $11.3 billion SBA
programme, the country received
about $8.1 billion and failed to get
the remaining $3.2 billion due to
suspension of the programme
due to delay in implementation of
fiscal reforms by the government.
Big houses, luxury items to come under new
taxation
RECORDER REPORT
Punjab government will impose a
new tax on big houses and luxury
items in the next fiscal year, and
rates of route permit and fitness
certificate of vehicles will be
increased to enhance revenue.
Punjab Finance Minister Mujtaba
Shuja-ur-Rehman
expressed
these views while presiding over
a
resource
mobilisation
committee meeting here on
Monday, disclosed an official.
BUSINESS
RECORDER
Tuesday, 13th May, 2014
Members Provincial Assembly
Sheikh Allauddin, Dr Nadia Aziz,
Qamarul Islam Raja as well as
secretaries and senior officers of
finance, excise and taxation,
irrigation, housing and agriculture
departments
and
Chairman
Punjab Revenue Authority and
Member Board of Revenue
attended
the
meeting.
imposed on restaurants of food
streets, hotels, guesthouses and
private educational institutions.
"Tax will also be collected from
the owners having more than
12.5 acres of land however,
income limit would be enhanced.
The government is making
revenue collection system simple
besides expanding tax net," he
added.
He also said tax would also be
According to him, public welfare
and development projects are
completed through collection of
taxes and the government will
expand tax net for this purpose.
Punjab Excise and Taxation
Department
will
evolve
a
comprehensive
strategy
for
evaluation of properties. Property
and other taxes will be deposited
online from any part of the
province and problems faced by
common man will be kept in view
at the time of new taxation.
Rise in gas tariff Ogra conducts hearing on
SNGPL petition
RECORDER REPORT
Oil and Gas Regulatory Authority
(Ogra) on Monday conducted
hearing on a petition filed by Sui
Northern Gas Pipelines Limited
(SNGPL) seeking increase in gas
tariff by Rs 123.80 per MMBTU
from July 01, 2014 in each
category of consumers to cover
the
shortfall
of
revenue
requirement of Rs 63,025 million
the company has to face during
2014-2015.
the company has sought an
increase in prescribed price of
gas due to the fact that no
increase in prices of gas has
been made because of pending
decisions on Final Revenue
Requirement (FRR) 2012-13,
Estimated Revenue Requirement
(ERR) 2013-14 and Revised
Estimated Revenue Requirement
(RERR)
2013-14.
Chief Financial Officer SNGPL,
Uzma Adil Khan presented the
petition in a public hearing based
on the revised cost of gas.
According to the revised cost of
gas the shortfall of the company
worked out to Rs 63,025 million,
which translates into an increase
of Rs 123.80 per MMBTU for
each consumer categories. The
hearing was conducted by
Chairman Ogra, Saeed Ahmad
Khan. The hearing was attended
by Managing Director SNGPL,
Arif Hamid, representatives of
general public, consumers and
representatives of industry and
CNG
sector.
She opined that price hike is also
vital
because
increase
in
Weighted Average Cost of Gas
(WACOG) has been made due to
change in wellhead price on
account of change in Rs/$ parity
and international price of crude
and fuel oil. She maintained that
decrease in supply from various
fields
have also
adversely
affected financial strength of the
company. Speaking on the
occasion, Saeed Ahmed Khan,
Chairman Ogra, who presided
over the function, said that
positive efforts especially in theft
control on part of the gas utilities
must be appreciated parallel to
the criticism on the working of the
gas
utility.
In order to meet revenue
requirement for the financial year
2014-15, CFO SNGPL added that
Managing Director SNGPL, Arif
Hamid said that company is
operating with a plan for the UFG
control and according to him, it is
also duly approved by the Ogra.
Regarding pipelines construction
plan, he said, the company
cannot
embark
upon
any
expansion project without due
approval of the regulator. He said
the company is facing severe
constraints on supply side and is
facing about 1000 mmcfd shortfall
of gas even in summer. Such a
challenging environment has led
to various problems for the utility,
which is being faced through
various administrative steps, he
observed. SNGPL MD claimed
that UFG of the company is still
lower than that of levels recorded
in several developed countries.
Ogra earlier organised a similar
public hearing on the SNGPL
petition in Peshawar on May 8,
where
too
independent
interveners had objected to the
demand of the company. The
determination would be made
public as soon as the Authority
reaches
its
decision
after
thorough
examination
and
deliberations on the facts of the
matter
under
the
law.
BUSINESS
RECORDER
Tuesday, 13th May, 2014
ICAP seeks to cut rate of corporate tax by two
percent
HASSAN ABBAS
The
Institute
of
Charted
Accountants of Pakistan (ICAP)
proposed that the rate of
corporate tax should be reduced
by at least 2 percent every year to
bring it at par with other
competitive economies and to
provide incentive for formation of
organised
and
documented
sector.
The
institute
also
proposed that there is a dire need
to bring down the corporate tax
rate in the minimum possible time
to 25 per cent (instead of
presently announced rate of 30
per
cent).
The budget proposals were
presented by President ICAP and
Chairman Taxation Committee
Naeem Akhtar Sheikh along with
former president ICAP Imran
Afzal, former member FBR Habib
Fakhur in a press briefing on
Monday. The present corporate
tax rate of 34 per cent is one of
the highest in the region. At
present Pakistan's tax to GDP
ratio is one of the lowest in the
region however this year tax
collection was increased by 15
per cent but this should be much
more
improved.
The corporate sector, which is the
most documented segment of the
economy, has been neglected
due to inadvertent measures
taken by the government in order
to cater annual budget targets.
Furthermore, the manufacturing
sector, which contributes to GDP
the most, carries a greater burden
of tax. The Service and the
Agriculture sectors are still not
fully documented hence their
contribution to the national
exchequer is extremely low. The
Institute has suggested to the
government for forming a Policy
Board, which is to be entrusted to
review the fiscal policies in the
context of its impact on the
economy. The prime objective of
the Policy Board would be to
debate and formulate national tax
policy in consultation with the
stakeholders.
The Board may comprise of in
broad spectrum, the eminent
economists
and
other
stakeholders like FPCCI, Tax Bar
Associations, trade bodies, ICAP
and other professional bodies.
They also said that tax audit is
the core function of any revenue
authority, therefore, it should be
separated from rest of the FBR.
The specialised cadre should
have technical, professional and
legal ability to meet the demands
of
the
sophisticated
and
diversified work of tax audit.
There is urgent need of capacity
building of the field formation
officers with high level of
technical skills and specialised
training
to
undertake
the
challenges of tax audit. An
effective audit will act as major
deterrent against under reporting,
frauds and tax evasion. The
capacity of auditor in the present
form is inadequate and cannot
equip them with the necessary
skill required to carry out the tax
audit. They said that the Institute
has
always
advocated
for
documentation of the economic
activities and long term tax
planning.
They also said that the tax burden
should be shared by shared by
every citizen of the country in an
equitable way. According to them
the fixed tax regime and the final
tax regime were introduced
decades ago as ad-hoc measure
to sustain tax collection, but to
compensate
economic
mismanagement and defective
collection system they had to be
evolved
into
an
important
collection
tool.
These regimes, coupled with the
frequently deliberated 'amnesty
schemes' creates a negative
perception about the whole
taxation system in the eyes of the
honest tax payer. The long-term
objective of any tax policy must
be to remove this perception at
the earliest. The law provides tax
immunity to foreign remittances
coming into the country however
he stressed that such immunity
should be available only to a
family member sending foreign
remittances, or for remittances
sent for investment in plant &
machinery in order to avoid such
immunity
provisions
in
unscrupulous hands leading to
large scale tax evasion. The tax
on services through provincial
laws is creating complications for
the genuine tax payers. The
Institute strongly stresses for
complete harmony among the
federal and provincial sales tax
laws so relieve the tax payers
from
undue
hassles
and
unwarranted litigation with tax
authorities.
BUSINESS
RECORDER
Tuesday, 13th May, 2014
Two textile mills of YBG plan to merge
RECORDER REPORT
Two textile mills of Younus
Brother
Group
(YBG)
are
planning to merge aimed at
attracting new investment. On
Monday Fazal Textile Mills and
Gadoon Textile Mills of YBG
announced to start due diligence
for potential merger. Analysts
said that the shareholders of
Gadoon Textile will be major
beneficiary as compared to Fazal
Textile Mills' shareholders, as
Gadoon Textile Mills share price
stands at Rs 189 as compared to
Fazal Textile Mills share price of
Rs
435.
Commenting on the move, a
researcher Muhammad Hussain
said that the Group would get
huge benefit by merging the two
mills, as it will increase the paid
up capital to get new loan.
"Another advantage would be of
exchanging technology, besides
lower marketing cost. Similarly,
they will also be able to avail the
opportunity of exchanging raw
material,"
he
added.
YBG owns Lucky Cement, Fazal
Textile Mill and Gadoon Textile
Mill. Both the companies have
sent information to Karachi Stock
Exchange in accordance with
Section 15D of the Securities
Exchange
Commission
of
Pakistan (SECP) Ord 1969 and
clause (XX) of listing regulations
No 35. of the Code of Corporate
Governance. According to the
notice, board of directors of Fazal
and Gadoon textile mills have
passed a resolution to explore the
viability of a potential merger of
both the companies. For this
purpose, discussion between
both parties has been started and
evaluation of feasibility is being
started. BoD has also authorised
the
companies
to
appoint
advisors and consultant for
evaluating
the
feasibility,
including due diligence and
valuation
for
consideration.
Modest trading witnessed on cotton market
RECORDER REPORT
Less buying interest was again
witnessed on the cotton market
on Monday owing to higher prices
and shortage of fine quality,
dealers said. The official spot rate
maintained last level at Rs 6,700,
they added. In the ready session,
around 2400 bales of cotton
finalised between Rs 6800 and
6850,
dealers
said.
According to the market sources,
increase in prices of best variety
caused low business as both
millers and spinners preferred to
the sidelines due to higher rates.
They attributed the stable trend in
rate to diminishing stock of unsold
cotton and delay in new crop
arrivals in both Sindh and
Punjab.
higher, they said. Besides, cotton
analyst, Naseem Usman said
some buying interest was seen in
the cotton yarn, indicating a sign
of improvement in cotton trade.
The following deals reported: 400
bales from Rajanpur at Rs 6800
and 2000 bales of cotton from
Dera Gazi Khan at Rs 6850,
dealers
said.
Long winter season and delay in
wheat sowing pushed prices
THE FOLLOWING ARE THE KCA OFFICIAL SPOT RATES FOR 2013-14 FOR LOCAL
DEALINGS IN PAK RUPEES FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
Spot Rate
Difference
Rate
Ex-Gin
Upcountry
Spot Rate
Ex-Karachi
Ex-Karachi in
For
Price
Expenses
Ex-Karachi
As on 10.05.2014
Rupees
37.324 Kgs
6,700
155
6,855
6,855
NIL
Equivalent
40 Kgs
7,180
155
7,335
7,335
NIL
BUSINESS
RECORDER
Tuesday, 13th May, 2014
New York cotton
RECORDER REPORT
The fluctuations observed during
the day:
Current Session
Prior Day
Open
High
Low
Last
Time
Set
Chg
Vol
Set
Mar'14
92.38
92.50
90.50
91.30
14:45
May 12
91.30
-1.06
7050
92.36
May'14
83.31
84.05
83.31
83.59
14:45
May 12
83.59
-0.60
2
84.19
July'14
83.66
83.78
82.66
83.57
14:45
May 12
83.57
-0.14
2873
83.71
Faisalabad yarn and fibre prices
RECORDER REPORT
Cotton yarn rates in rupees per
10 Lbs on Monday (May 12,
2014).
6-8/S Cone (Cotton)
ARY
560.00
Hafiz
520.00
Crescent
960.00
Nelibar
950.00
Diamond
565.00
------------------------------------10/S Cone (Cotton)
------------------------------------Crescent
960.00
Meraj
550.00
Nelibar
980.00
Nelum
580.00
Owais Karni
520.00
Gold Star
650.00
Qadri
640.00
Kohinoor
530.00
Soofi
540.00
Sadiq
530.00
Prince
640.00
Dawoo
590.00
Super
Shaheen
520.00
Suraj
550.00
Apple
640.00
Ton-Ton
640.00
------------------------------------10/S Cone (Soft)
------------------------------------S.B.
760.00
Kinoo
780.00
Nelibar
980.00
Shafi
790.00
Malta
770.00
Model
780.00
------------------------------------12-14/S Cone (Cotton)
------------------------------------Nelibar
1000.00
Ruby
1060.00
Qadri
700.00
Adil
700.00
Madni
900.00
Candi 16/S
980.00
------------------------------------16/S Cone (Cotton)
------------------------------------Khalid Siraj
1060.00
Prince
860.00
H-2
990.00
Wasal
Kamal
1110.00
Golden
Eagle
1140.00
Neeli Bar
1130.00
Super Motia
860.00
Metro
840.00
Ravi
1120.00
Tri-Tex
1170.00
Ruby
1170.00
Apple
870.00
Madni
1000.00
------------------------------------20/S Cone (Cotton)
------------------------------------Zahidjee
1240.00
Anmool
1180.00
J.K.
1160.00
Khalid Shafiq
1260.00
Khalid Siraj
1270.00
Tri Tex
1230.00
Ruby
1220.00
MGM
1210.00
Golden
Eagle
1150.00
Pride
1125.00
Crescent
Ujala
1140.00
------------------------------------22/S Cone (Cotton Warp)
------------------------------------Crescent
1180.00
Yahya
1170.00
HAR
1190.00
Super
Moon
1150.00
Tayyab
1160.00
------------------------------------24/S Cone (Cotton Warp)
------------------------------------Polo
1250.00
Naigra
1230.00
Prince
1240.00
Sufi
1210.00
Sarfraz
1190.00
Kashir
1180.00
Jet
1190.00
Golden
Eagle
1200.00
------------------------------------30/S Cone (Cotton Warp)
-------------------------------------
BUSINESS
RECORDER
Tuesday, 13th May, 2014
Afzal
Spinning
1390.00
Crescent
1425.00
Acro
1330.00
Glamour
1320.00
Shaheen-2
1370.00
Arain
1325.00
Polo
1390.00
Ujala
1380.00
Jet
1365.00
Khalid Shafiq
1430.00
Shafi
1370.00
CA
1400.00
Niagra
1380.00
------------------------------------32/S Cone (Cotton)
------------------------------------Madni
1390.00
Al-Qadir
1380.00
Ittehad
1390.00
A-3
1400.00
MKB
1400.00
Ab-shar
1370.00
Amjad
1370.00
Target
1400.00
Gilani
1390.00
F.F.
1380.00
CA
1360.00
------------------------------------40/S Cone (Combed Cotton)
------------------------------------JK
1650.00
JK Carded
1550.00
Acro
1625.00
Betray
1580.00
Ittihad
1565.00
Suraj
1675.00
C-20
1480.00
Gilani
1450.00
Gadoon
1450.00
MKB
1520.00
Hussan
Nayab
1490.00
Ahmad
1530.00
Azam
1540.00
------------------------------------52/S Cone (Combed Cotton)
------------------------------------Crescent
2350.00
Ittihad
2375.00
Suraj
2400.00
Babri
1925.00
A.A
2050.00
Hussain
Nayab
1925.00
Amjad
1625.00
Diamond
2025.00
Umer Auto
1725.00
Kapaas
1650.00
Gojjar Khan
1925.00
Bashir
Cotton
1950.00
Motorway
2000.00
Ravi
1575.00
Zeshan
1675.00
Prime Plus
1950.00
------------------------------------60/S Cone (Combed Cotton)
------------------------------------Nishat
2400.00
J.K.
2375.00
Ittehad
2320.00
Kohinoor
2425.00
Taj Mahal
2350.00
------------------------------------72/S Cone (Cotton)
------------------------------------Prime
2275.00
Bemisal
2325.00
Idreas
2300.00
Super Sally
2325.00
Super
Shaheen
2225.00
Hub 74/s
2325.00
------------------------------------80/S Cone (Cotton)
------------------------------------Gold King
3025.00
Super King
3020.00
General
3225.00
Azam
3250.00
Usman
3225.00
Four-Star
3325.00
D.S.
3000.00
Babri
3000.00
Diamond
Gate
3275.00
------------------------------------30/S Cone (Polyester Cotton)
------------------------------------Gold Star
149.00
Sun
140.00
JK
133.00
Dawood
136.00
Tahir Rafique
117.00
Zahidjee
119.00
Imperial
119.00
Shadman
113.00
Sarfraz
114.00
Cherry
120.00
Khalid Nazir
117.00
Wasal
Kamal
116.00
North Star
115.00
Super
Khuwaja
118.00
Ruby
115.00
Action
107.00
Pak Panther
111.00
NP
94.00
Super
Al-Qadir
113.00
Club
120.00
Shaheen-2
118.00
Metro
102.00
Kiran
95.00
------------------------------------38/S Cone (Polyester Cotton)
------------------------------------Gold Star
160.00
Ghazi
121.00
Golden
121.00
Kirshma
114.00
AD
114.00
Sarhad
118.00
Aslam
112.00
Royal
118.00
Chairman
(N)
117.00
------------------------------------40/S Cone (Polyester Cotton)
------------------------------------A.A.
172.00
Mehtabi
147.00
Shadab
147.00
------------------------------------30/S Cone (CVC)
------------------------------------Ayeshia
140.00
SUN
144.00
Kamal
139.00
------------------------------------26/S Cone (PV)
------------------------------------AA
134.00
Ashiana
134.00
MM
111.00
Blue Star
113.00
Super Jett
119.00
Car
113.00
M-4
117.00
Bemisal
111.00
Reshim
109.00
U-2
114.00
Target
111.00
Cheeta
108.00
White Tiger
111.00
Triple two
110.00
------------------------------------34/S Cone (PV)
------------------------------------A.A.
150.00
Ashiana
148.00
Sapna
147.00
Blue Star
123.00
Super Jett
127.00
Shahzad-2
125.00
Shuttle
120.00
Bemisal
120.00
Shuttle less
121.00
Cheeta
116.00
BUSINESS
RECORDER
Tuesday, 13th May, 2014
Sultan
118.00
Target
120.00
Suraj Mukhi
116.00
Royal
110.00
Fareed
116.00
U-7
118.00
Super Star
110.00
------------------------------------44/S Cone (PV)
------------------------------------A.A.
176.00
Ashiana
174.00
Sapna
162.00
Bemisal
142.00
Marghala
141.00
U-2
143.00
Cheeta
140.00
A-J
143.00
------------------------------------65/S Cone (PV)
------------------------------------Four Star
204.00
White Tiger
206.00
Dollar
206.00
Bemisal
209.00
Cheeta
208.00
U-2
210.00
Marghala
202.00
------------------------------------60/S Cone PP
------------------------------------Five Horse
178.00
Zamin
178.00
Anwar
179.00
Cheeta
177.00
Ellahi
175.00
Taj Mahal
176.00
------------------------------------35/S Cone (Staple)
------------------------------------Diamond
Gate
1500.00
Marghala
1490.00
Saif
1500.00
Four Star
1490.00
A.J.
1450.00
Fazal Cloth
1440.00
------------------------------------30/S Cone (Ecrylic)
------------------------------------Koial
190.00
Saif
185.00
------------------------------------40/S Cone (Ecrylic)
------------------------------------Koial
194.00
Saif
186.00
Latif
189.00
------------------------------------22/S Cone (NP)
------------------------------------Ittehad
93.00
Chaman
88.00
Hub
92.00
Shafi
90.00
Model
91.00
Shaheen
92.00
Karachi Yarn Market Rate
RECORDER REPORT
Karachi Yarn Market Rates on
Monday (May 12, 2014).
CONES CARDED
10/1.
Popular Fibre
950.00
Diwan
1090.00
Tritex
915.00
12/1
A. A. Cotton
NIL
Popular Fibre
NIL
16/1.
United
1160.00
Popular
Fibre
1110.00
Abdullah
Textile
1110.00
Indus
1150.00
A. A. Cotton
NIL
Tritex
1130.00
21/1.
Ishtiaq Tex
1220.00
Al-Karam
(A.K)
1250.00
Suriya Tex
1230.00
United
1230.00
GulAhmed
(G.Lite)
1250.00
Popular
Fibre
1200.00
Shadman
1230.00
Indus
Dyeing
1250.00
Abdullah
1200.00
Lucky
1200.00
A. A. Cotton
Diwan
22/1.
Bajwa
Popular
1225.00
United
24/1.
A. A. Cotton
Tritex
26/1.
AL-Karam
Dewan
Amin Text
Shadman
1330.00
Diamond Int'l
Popular
1320.00
Ishtiaq Textile
26/1.
Standard
Lucky
1300.00
A. A. Cotton
28/1
Abdullah
1370.00
30/1.
Textile
Cotton
1200.00
1200.00
1230.00
Fibre
1230.00
1350.00
1280.00
1360.00
1310.00
1330.00
Cotton
1320.00
Spinning
1320.00
1320.00
Cotton
1300.00
Textile
Amin Tex.
1400.00
Al-Karam
1420.00
Jubilee
Spinning
1380.00
GulAhmed
(G.Lite)
1420.00
Lucky
Cotton
1380.00
Diamond Intl
1400.00
32/1
Abdullah
Textile
1400.00
40/1
Lucky
Cotton
1650.00
52/1
Lucky
Cotton
1700.00
------------------------------------COMBED CONE
------------------------------------20/1 Gulistan
1350.00
30/1 Gulistan
1520.00
32/1 Gulistan
1550.00
40/1
Gulistan
Warp
1700.00
Gulistan
(Non
Compect)
1700.00
Indus CF
1900.00
20/2.
GulAhmed
1320.00
BUSINESS
RECORDER
Tuesday, 13th May, 2014
Amin
1320.00
Indus
Dyeing
1320.00
Bajwa
1300.00
Shadman
Cotton
1300.00
42/1
Abdullah
Textile
1600.00
52/1
Abdullah
Textile
1700.00
10/1 SLUB
Gulistan
(Carded)
1180.00
Gulistan
(Combed)
1300.00
20/1. SLUB
Abdullah
Textile
1250.00
Gulistan
1250.00
30/1 SLUB
Abdullah
Textile
1500.00
60/1.
Abdullah
Textile
1750.00
70/1
Abdullah
Textile
1850.00
------------------------------------COTTON AUTOCORO
------------------------------------7/1.
Gulistan
900.00
10/1.
Gulistan
920.00
12/1 Gulistan
960.00
------------------------------------CHEES CONES
------------------------------------10/1.
Kasim Tex
700.00
Latif Tex. (Latif)
720.00
Super
700.00
Abdullah
Textile
(OE)
700.00
16/1. (O.E.)
Kasim Textile
900.00
Masal
890.00
------------------------------------RATE OF BLANDED YARN IN
RUPEES(PER LBS)
------------------------------------P.V. CONES
------------------------------------18/1 PV
A.A. Textiles
117.00
A.A.
Cotton
(80
:
20)
130.00
20/1 PVB
A.A. Textile
120.00
24/1 P.V. BRIGHT
A.A. Tex.
123.00
Sana
122.00
A.
A.
Cotton
(80:20)
125.00
26/1.PV Bright
A.A. Tex.
132.00
Sana
128.00
A. A. Cotton
135.00
30/1 PV
A.A.
Tex."Z"
Twist
136.00
Sana
134.00
A. A. Cotton
135.00
26/1 P.V. (S.D.)
A.A. Textile
132.00
A.
A.
COTTON
128.00
Sana
126.00
36/1 PV (SD)
A.A. Textile
147.00
A.A.
Textile
(65-35)
151.00
A. A. Cotton
147.00
Sana
136.00
40/1. (PVB)
Sana
151.00
A. A. Cotton
152.00
A. A. Textile
154.00
46/1 PVSD
Ibrahim Fibre
172.00
A.
A.
Cotton
(80:20)
170.00
60/1 PVB
A.A.
COTTON
185.00
26/1 SLUB
A.
A.
Cotton
SLUB
165.00
30/1 PV SLUB
A.A.
Clock
Tower
154.00
A.
A.
Cotton
(PVB)
155.00
A.
A.
Cotton
(PC)
165.00
A. A. Cotton SLUB (PP)
155.00
Sana
SLUB
(PP)
146.00
20/1 PVT
Sana
134.00
30/1 PVT
Sana
146.00
12/1 PP
A. A. Cotton
115.00
16/1 PP
A. A. Cotton
120.00
20/1 PP
Sana
111.00
Diwan
98.00
A. A. Cotton
125.00
Agar
96.00
26/1 PP
A. A. Cotton
127.00
30/1 PP
Agar
101.00
Anwar
109.00
Sana
121.00
Diwan
103.00
A. A. Cotton
130.00
A.
A.
Cotton
(Stwist)
120.00
40/1 PP
A. A. Cotton
140.00
50/1. (P.P)
A.
A.
Cotton
(Twist)
145.00
60/1. (P.P)
Agar
124.00
Diwan
125.00
Anwar
130.00
A. A. Cotton
152.00
80/1 PP
A. A. Cotton
200.00
8/.1.
A.
A.
Cotton
(52
48)
104.00
10/.1.
Zainab
123.00
A. A. Cotton
104.00
Lucky Cotton
135.00
12/1
A. A. Cotton
110.00
16/1
AA SML Carded (52 48)
122.00
IFL (52 48)
130.00
A. A. Cotton
116.00
------------------------------------P.C. COMBED
------------------------------------20/1. PC
A.A.SMLCARDED
132.00
Zainab
(Combed)
140.00
A.
A.
Cotton
(Carded)
121.00
A. A. Cotton CVC (60 : 40)
126.00
24/1. PC
A.
A.
SML
Carded
136.00
Zainab
(Combed)
136.00
A.
A.
Cotton
(60:40)
132.00
25/1
A.A. Cotton
128.00
30/1. PC (52 : 48)
BUSINESS
RECORDER
Tuesday, 13th May, 2014
Zainab
Textile
(combed)
146.00
Stallion
130.00
Khawaja
130.00
K. Nazir
130.00
Al-Karam
134.00
AA
SML
(Carded)
140.00
A.
A.
Cotton
(Carded)
137.00
A.
A.
Cotton
(W)
115.00
A. A. Cotton CVC (60 : 40)
142.00
36/1. PC
IFL
Tex
(Combed)
157.00
40/1 PC
Khawaja
(Carded)
143.00
A.A.
Textile
(Combed)
168.00
A.
A.
Cotton
(65:35)
155.00
45/1 PC
Zainab
180.00
10/1 CVC
A.
A.
Cotton
(60:40)
109.00
12/1 CVC
A.
A.
Cotton
(60:40)
113.00
30/1. VISCOSE
A. A. Cotton
170.00
Sana
146.00
35/.1. VISCOSE
Sana
151.00
40/.1. VISCOSE
Sana
156.00
A. A. Cotton
160.00
------------------------------------SEWING THREAD YARN
------------------------------------Sana
21/1 PP
118.00
30/1 PP
128.00
34/1 PP
132.00
40/1 PP
140.00
50/1 PP
151.00
-------------------------------------
RATES
OF
PAKISTANI/IMPORTEDPOLYE
STER YARN (PER LBS) + GST
------------------------------------Imported
50/36
FDY
90.50
Local Mill
120.00
Rupali
75/78
FDY
96.00
Import
75/72
FDY
83.00
Local Mill
94.00
Rupali
75/48/0
DTY
105.00
Imported
75/48/0
DTY
100.00
Local Mill
106.00
Rupali 75/36/0 & 75/24 DTY
108.00
Imported
75/36/0
DTY
101.00
Local Mill
106.00
Rupali
75/128
INT
DTY
120.00
Local Mill
120.00
Imported 75/72 INT DTY
112.00
Local Mill
105.00
Imported 75/144 INT DTY
118.00
Local Mill
NIL
Rupali
300/96/INT
DTY
93.00
Imported
300/96/INT
DTY
89.00
Local Mill
89.00
Rupali
300/96/0
DTY
92.00
Imported
300/96
DTY
84.00
Local Mill
85.00
Rupali
75/24
INT
DTY
110.00
Imported75/36
INT
DTY
108.00
Local Mill
110.00
Rupali
150/48/0
DTY
90.00
Imported
150/48/0
DTY
83.00
Local Mill
85.00
Rupali
150/48
INT
DTY
95.00
Imported 150/48 INT DTY
92.00
Local Mill
92.00
Imported
150/144
SIM
92.00
Local Mill
NIL
------------------------------------READY RATES OF STAPLE
FIBER IN RUPEES
------------------------------------POLYESTER
K.G.
------------------------------------I.C.I. 1.D
152.00
I.C.I. 1.2 (SD)
152.00
I.C.I. Bright
154.00
Rupali 1.D
152.00
Rupali
1.2
(SD)
152.00
P.S.L. 1.D
152.00
P.S.L. 1.2 (SD)
152.00
Ibrahim
Fiber
(SD)
152.00
Ibrahim 1.D
152.00
Ibrahim
Fiber
Bright
157.00
Ibrahim
Trilobal
Bright
157.00
------------------------------------VISCOSE
K.G.
------------------------------------FCFC
44
MM
210.00
FCFC
51
MM
210.00
Grysum India
210.00
Thai
Reyon
51
MM
210.00
S.P.V.
Ind.
51
MM
210.00
------------------------------------ACRYLIC
FIBER
K.G.
------------------------------------Monty
1.2x51
310.00
Acelon
Korea
1.2x51
310.00
Tuesday, 13th May, 2014
Tax officials given more powers
Mubarak Zeb Khan
ISLAMABAD: The government has
granted
additional
powers
to
Intelligence and Investigation officers of
Inland Revenue Service (IRS) to
ensure collection of evaded revenue.
The powers will ensure that the cases
initiated are brought to a conclusion
and revenue is collected and deposited
in government exchequer.
The powers were notified through an
SRO 351(I)/2014 on Monday.
The Intelligence and Investigation
Wing, Inland Revenue, was created in
March 2011. So far the agency has
unearthed major scams of tax evasion
from textile tycoons, cricketers, media
persons and business elites. But due to
limited powers, the recovery was
negligible from the tax evaders.
According to the details issued by the
Directorate General of Intelligence and
Investigation (IR), the additional
powers were given following the
observation that investigation reports
sent to the field formations were not
getting the attention they merited.
Moreover, this duplication of work
made it inconvenient for the taxpayers
to appear at different fora for
finalisation of their cases.
The powers to enter and search
premises under section 175 as well as
powers to call for information from the
taxpayers u/s 176 of the Income Tax
Ordinance, 2001 were already vested
with the Directorate General and were
exercised with due care. With
additional powers, there would be
enhanced checks and balances on the
officers to ensure that an atmosphere
of harassment was not created.
An official statement of the directorate
claims that the granting of additional
powers will not only make the
organisation
more
incisive
and
effective, but also make it more
accountable as it will have to realise
and collect the revenue shown in the
investigation reports as collectable.
With the grant of additional powers, the
scope and nature of work of the
directorate general remains the same;
however a new responsibility of
collection of revenue has been added.
As per the new powers, the directorate
general would continue to target
selected ‘high net worth cases’ where
there is a clear evidence of tax evasion
or a select number of cases involving
glaring tax evasion. It would not target
cases of compliant taxpayers.
The purpose of creation of the
Intelligence and Investigation Wing was
to identify and unearth areas involving
huge leakage of revenue and to create
deterrence for the tax evaders. The
idea behind this is to ensure a level
playing field as tax evaders make the
market non-competitive for honest
taxpayers.
Further, tax evaders use various
techniques to hoodwink the tax
authorities;
cross
jurisdictional
transactions being one of them. This
creates problems for LTUs/RTOs who
have specific jurisdiction and cannot go
beyond
it.
Development spending to be cut for 2014-15
Khaleeq Kiani
ISLAMABAD: The federal government
has decided to curtail its development
programme for next fiscal year by
almost three per cent due to tight
financial position.
A senior official told Dawn that a
meeting
of
the
Annual
Plan
Coordination Committee (APCC) has
been convened on May 23 to clear
Rs525 billion worth of federal Public
Sector
Development
Programme
(PSDP) for 2014-15.
This would be about 2.8pc lower than
Rs540bn allocated for current year’s
development programme in the budget.
The government is required under a
programme
of
the
International
Monetary Fund (IMF) to reduce fiscal
deficit for current year at 6.3pc of GDP
to 4.8pc of GDP next year.
The official, however, said the next
year development programme should
be seen in the context of actual
spending during current fiscal year
because the government was yet to
utilise half of the allocation made for
current
year’s
development
programme. The meeting of the APCC
is the major step towards finalisation of
federal budget for the next year.
The APCC meeting, to be presided
over by Minister for Planning and
Development Ahsan Iqbal, would be
attended by ministers for development
from four provinces, Azad Jammu and
Kashmir and Gilgit-Baltistan and all the
federal secretaries and heads of
autonomous corporations.
The APCC is required to recommend
federal and provincial development
programmes to the National Economic
Council (NEC) -- the country’s highest
economic decision making forum -- for
final approval along with major
macroeconomic indicators for the next
fiscal year.
An official said the ministry of finance
had asked the Planning Commission to
limit next year PSDP within Rs525bn
envelop as envisaged in the Indicative
Budget Ceiling (IBC) provided to all the
federal ministries and divisions.
He said the provincial governments
had not yet conveyed the size of their
Annual
Development
Programme
(ADP) to the Planning Commission
despite repeated requests.
He said the APCC would recommend
to the NEC to approve federal PSDP of
Tuesday, 13th May, 2014
Rs525bn but there was possibility of an
increase in it on the recommendations
of the prime minister. A number of
priority projects of the government like
Karachi-Lahore Motorway that could
not be initiated during current fiscal
year would be made part of the next
year’s PSDP, the official said.
Officials said the meeting of the NEC
had not yet been scheduled but could
be convened any day in the last week
of the current month.
The Planning Commission’s official
said the comparison of current year’s
budgetary allocation had become
irrelevant by now because of major
slippages on revenue collection. “The
next year allocation should be
compared with current year’s actual
utilisation,” said the official and
conceded the political governments
usually wanted to pitch future
projections on the higher side even
though failures in collecting revenues
leads to axing of the development
programme.
The IMF and the government had
already reduced current year’s revenue
target to Rs2.275 trillion from
budgetary target of Rs2.475 trillion — a
reduction
of
Rs200bn.
As
a
consequence, the government has
released only 46pc of the development
funds allocated in the federal budget
against 85pc required to be disbursed
by
now.
Remittances rise 11.45pc in July-April
APP
KARACHI: Overseas Pakistani workers
remitted $12.9 billion in the first 10
months (July-April) of this fiscal year, a
growth of 11.45 per cent compared
with $11.57bn received during the
same period of last year.
The State Bank of Pakistan on Monday
said the inflow of remittances in the 10month period from Saudi Arabia, US,
UK, GCC countries (including Bahrain,
Kuwait, Qatar and Oman), and the
European Union (EU) amounted to
$3.8bn, $2.52bn, $2.02bn, $1.8bn,
$1.52bn
and
$355.31
million
respectively, compared with $3.37bn,
$2.3bn, $1.82bn, $1.6bn, $1.3bn and
$297.69m.
Remittances received from Norway,
Switzerland, Australia, Canada, Japan
and other countries during the period
were $857.31m against $825.8m a
year earlier.
nation EU amounted to $415.09m,
$233.97m,
$206.15m,
$166.07m,
$169.67m and $36.37m respectively
compared with $392.28m, $226.07m,
$183.19m, $176.14m, $135.81m and
$28.65m in April 2013.
Remittances received from Norway,
Switzerland, Australia, Canada, Japan
and other countries during the previous
month
amounted
to
$84.51m.
In April this year, the inflow of
remittances from Saudi Arabia, UAE,
US, UK, GCC countries and the 28-
Lacklustre trading on cotton market
The Newspaper's Staff Reporter
KARACHI: The cotton market on
Monday remained lacklustre where
buyers were not inclined to purchase
lint at prevailing high prices.
The recent buying from spinners
pushed prices up for quality lint but
there is a general perception that
prices have crossed the viability line of
spinning industry.
Floor brokers said the dwindling stocks
of unsold cotton with ginners and
expected delay in new crop arrivals
generated some buying from needy
mills last week.
However, spinners now think that
buying lint at current prices would
totally disturb their cost. Consequently,
no buying interest was witnessed and
market remained devoid of activity
barring a few deals.
The Karachi Cotton Association (KCA)
spot rates were unchanged and trading
on ready counter was extremely slow.
The following two deals changed hands
on ready counter: 400 bales, Rajanpur,
at Rs6,800; and 2,000 bales, Dera
Ghazi
Khan,
at
Rs6,850.
Tuesday, 13th May, 2014
THE FOLLOWING ARE THE KCA OFFICIAL SPOT RATES FOR 2013-14 FOR LOCAL
DEALINGS IN PAK RUPEES FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
Rate
For
Ex-Gin
Price
Upcountry
Expenses
Spot Rate
Ex-Karachi
37.324 Kgs
Equivalent
6,700
155
6,855
40 Kgs
7,180
155
7,335
Tuesday, 13th May, 2014
Budget deficit reduced to 3.1 percent
Mehtab Haider
ISLAMABAD: The overall fiscal
surplus forwarded by the provinces
to the tune of Rs216 billion as well
as surge in non-tax revenue have
helped the federal government to
curtail its budget deficit at Rs811
billion, or 3.1 percent of gross
domestic product (GDP), in the first
three quarters (July-March) of 201314, revealed official statistics on
Monday.
But,
the
statistical
discrepancy
increased manifold in the current fiscal
year as it stood at Rs171.339 billion in
July-March of 2013-14 against a figure
of just Rs83 billion in the same period
of the last financial 2012-13.
According to provisional figures
released by the Finance Division, the
debt servicing, defence requirements
and development spending were three
major heads of the expenditures bill of
the country in the said period.
The debt servicing on both domestic
and foreign debt consumed Rs909
billion, defence Rs451 billion and
federal public sector development
programme Rs193 billion in the first
nine months of the current financial
year.
To finance the budget deficit of Rs811
billion, the government arranged
financing of Rs50 billion through
external avenues, while largely the
budget deficit was financed through
domestic banking and non-banking
avenues during the current fiscal year.
The external resources to bridge the
financing gap stood at just four billion
rupees in the same period of the last
fiscal year as foreign donors largely
remained shy to provide resources to
the previous government.
Total revenues generated by the
government stood at Rs2.477 trillion in
July-March FY14 against a total
expenditure
of
Rs3.289
trillion,
registering a budget deficit at Rs811
billion, or 3.1 percent, of GDP.
The budget deficit in the same period
of the last financial year stood at
Rs1,046 billion, or 4.4 percent, of GDP
in FY13.
The
government
generated
tax
revenues of Rs1.786 trillion and non-
tax revenues of Rs691 billion in the first
nine months of the current fiscal year.
The non-tax revenues generated in the
same period of the last financial year
were Rs597 billion.
The tax collection of the Federal Board
of Revenue was recorded at Rs1,574
billion in the nine months.
On non-tax revenue side, the State
Bank of Pakistan’s profit went up to
Rs200 billion and mark up on public
sector
enterprises
and
others
increased to Rs61 billion in the period
under review from Rs7.9 billion in the
comparable period.
On other heads, the government
generated non-tax revenues up to the
desired mark. On expenditure side, the
superannuation of allowances and
pension consumed Rs132 billion,
grants (other than provinces) Rs188
billion and other general public services
Rs254 billion.
On health, the utilization stood at Rs6.9
billion, education affairs and services
Rs45 billion and social protection
Rs1.135 billion so far in the current
fiscal
year.
Textile sector considering consolidation
Javed Mirza
KARACHI: The board of directors of
Fazal Textile Mills Limited and
Gadoon Textile Mills Limited have
resolved to explore the viability of a
potential merger with and into each
other, an official said on Monday.
Abdul Sattar, company secretary of
Gadoon Textile Mills, said that they are
exploring the viability of merger
between textile unit / business with and
into Fazal Textile Mills Limited and in
this respect entered into discussions
with the parties concerned.
M Toufique Yusuf, company secretary
of Fazal Textile Mills, said that the
companies had also been authorised to
appoint advisers and consultants for
evaluating the feasibility, including due
diligence
and
valuation
for
consideration.
The last three years have witnessed
rejuvenation in the country’s textile
sector, which contributed 58 percent to
the exports in the fiscal year 2012-13.
Total exports clocked in at $13 billion,
accounting for two percent of the global
textile exports, he said.
Fazal Textile Mills has a market
capitalisation of Rs2.908 billion and the
share is trading at Rs472. Fazal Textile
Mills Ltd (FTML) is located in Karachi
and was taken over by the Yunus
Brothers Group in March 1987. At
present, FTML has a total installed
capacity of 60,000 spindles.
Gadoon Textile Mills has a market
capitalisation of Rs4.452 billion and its
share is trading at Rs182. Gadoon
Textile Mills Ltd (GTML)
was
established in 1988 and came into
commercial production in 1990. GTML
is located in the Gadoon Amazai
Industrial Area, Islamabad. It has a
capacity of 185,000 spindles, which are
producing various types of yarns.
Dr Shamshad Akhtar, former governor
of the State Bank of Pakistan (SBP),
had advocated consolidation of the
textile sector through mergers and
acquisitions in order to effectively face
Tuesday, 13th May, 2014
tough
international
environment.
trading
Addressing the members of All
Pakistan Textile Mills Association
(Aptma), the former SBP governor had
said: “The industry should gear itself to
deal with the increasingly tough
competition in the international market.
I request you people to seriously look
into the consolidation of the sector, as
international and regional competitive
pressures are going to further build up
and it will be large corporates that are
more likely to survive.”
Analysts say the textile sector should
endeavour to achieve economies of
scale as with size come everything;
small-sized enterprises could also
benefit by contributing to large-scale
export
units.
SNGPL seeks tariff hike
Munawar Hasan
LAHORE: The Sui Northern Gas
Pipelines Limited (SNGPL) strongly
demanded on Monday an increase
of Rs123.80 per million British
thermal unit (MMbtu) in an average
prescribed gas price with effect from
1 July, 2014, terming surge in tariff
indispensable for averting its
bankruptcy.
Based on the revised cost of gas, the
shortfall of the company is worked out
to be Rs63,025 million, which
translates into an increase of Rs123.80
per MMbtu for each consumer
categories, said Uzma Adil Khan, chief
financial officer of the SNGPL at a
public hearing on its petition seeking
tariff hike, which was organised by the
Oil and Gas Regulatory Authority
(Ogra).
Various
stakeholders,
including
consumers, interveners, general public,
representatives of industry and CNG
(compressed natural gas) sector
presented their comments on the
petition on the occasion.
In order to meet revenue requirement
for the financial 2014-15, the CFO
SNGPL added that the company had
sought an increase in prescribed price
of gas due to the fact that no increase
in gas price was made because of
pending decisions on the Final
Revenue Requirement (FRR) 2012-13,
the Estimated Revenue Requirement
(ERR) 2013-14 and Revised Estimated
Revenue Requirement (RERR) 201314.
Uzma opined that price hike was also
vital because the increase in weighted
average cost of gas was made due to
change in wellhead price on account of
change in Rs/$ parity and international
price of crude and fuel oil. She
maintained that decrease in supply
from various fields have also adversely
affected financial strength of the
company.
Mehmood Mirza, legal counsel of the
SNGPL, pleaded that the regulator
should take steps as per the law for
ensuring viability of the company.
He added that the study to determine
unaccounted-for gas (UFG) had yet to
be completed by the authority, stating
that it was one of the major hindrances
in resolving pending issues relating to
the financial strength of the gas utility.
The determination of UFG should be a
joint exercise to find out best solution of
the problems, he observed.
Speaking on the occasion, Chairman
Ogra Saeed Ahmed Khan said that
positive efforts especially in theft
control on part of the gas utilities must
be appreciated, parallel to the criticism
on the working of the gas utility.
The chairman’s observation came after
a criticism against the management of
the SNGPL by a public intervener. Both
Arif Hameed, managing director of the
SNGPL and Mirza objected to
intervener through the chair by saying
that personal attacks were not relevant
to the petition.
The chairman, thus, impressed upon
the interveners to stay relevant and
avoid personal attacks on any of the
members of the SNGPL management
and refrain from general discussion.
The interveners were of the view that
the company was not having any plan
to curtail still increasing percentage of
UFG.
“When they say there is no gas in the
supplies, and the sale of gas is
declining, how their operating is cost
going up,” asked one intervener.
Responding to the interveners point by
point, the Hameed said it was
operating with a very well chalked-out
plan for the UFG control and according
to him, it was also duly approved by the
Ogra.
Regarding pipelines construction plan,
he said, the company cannot embark
upon any expansion project without
due approval of the regulator. He said
the company was facing severe
constraints on supply side and is facing
about 1000 million cubic feet per day
shortfall of gas even in summer.
Such a challenging environment has
led to various problems for the utility,
which is being faced through various
administrative steps, he observed.
The SNGPL MD claimed that the
company’s UFG was still lower than
that of levels recorded in several
developed countries. Talking about the
outcome of public hearing exercise,
Ogra’s spokesperson said the authority
has heard both the parties, petitioners
and interveners and reserved its
decision.
The determination would be made
public as soon as the authority reaches
its decision after thorough examination
and deliberations on the facts of the
matter
under
the
law.
Tuesday, 13th May, 2014
Gas discovered
Our correspondent
ISLAMABAD:
Mari
Petroleum
Company Limited (MPCL) has
discovered a significant gas reserve
in its Sujawal block’s Sujjal-1 well
located in district Sujawal.
An announcement said on Monday that
it was the first hydrocarbon discovery in
Lower Goru Upper C-Sand in the
southernmost part of the country, which
was considered to be non-prospective
for this reservoir.
Sujjal-1 well, 2nd exploratory well in
Sujawal block, was spud in on January
26, 2014 and drilled down to a depth of
2.535 kilometres in Lower Goru
formation. As a result of testing, Sujjal1 flowed gas and condensate at a rate
of 13.1 million cubic feet day per day
(mmscfd) and 75 barrels per day,
respectively, with wellhead pressure of
2,477 pound per square inch (PSI) at
32/64” choke size.
The discovered gas has very good
heating value of 1,045 British thermal
unit.
The Sujjal well has also been
successfully tested at Lower Goru
Upper A-Sand; which recorded a gas
flow rate of 2.1 mmscfd and
condensate of 3.5 barrels per day with
wellhead flowing pressure of 163 PSI
at 48/64” choke size. Preliminary
estimates indicate reserves potential of
approximately 20 billion cubic feet of
gas and condensate (equivalent) within
C-Sand interval, which based on
currently
applicable
gas
price,
translated into approximately Rs11.70
billion.
The Sujawal block was awarded to
MPCL as operator with 100 percent
working interest on June 21, 2006.
The company drilled its first exploration
Sujawal X-1 well in 2010, which was
also a gas and condensate discovery.
The discovery has since been brought
on stream through extended well
testing operations with installation of
early production facilities, supplying
gas to Sui Southern Gas Company
Limited and condensate to Pakistan
Refinery
Limited
and
Pak-Arab
Refinery Limited. The Sujjal discovery
shall be a new indigenous energy
supply source and expected to add
significantly to the nation’s hydrocarbon
reserve
base.
Cotton price declines
Our correspondent
Karachi
Price of high quality cotton declined by
Rs150 per maund (37.324 kilograms)
to Rs6,850 per maund at the open
markets in Pakistan, while the decline
helped recover trade turnover of the
commodity to 2,400 bales (155
kilograms), a dealer said on Monday.
“The price of cotton fell after spinning
mill-owners halted buying at previous
higher rate of Rs7,000 per maund,” a
broker at the Karachi Cotton Exchange
said.
The decline in price helped generate a
turnover of 2,400 bales, which declined
to mere 400 bales and 600 bales on
the previous Friday and Saturday,
respectively, he said.
The price had gone up on sudden
increase in trade activities on reports of
delay in cotton sowing and trading time
in the country, he said. Traders
exchanged 2,400 bales at Rs6,800 to
Rs6,850 per maund as compared to
600 bales traded at Rs7,000 per
maund on Saturday, the Karachi
Cotton
Association
(KCA)
said.
Tuesday, 13th May, 2014
Govt. relies on slashing PSDP, non-tax revenues
IMRAN ALI KUNDI
ISLAMABAD -The federal government
would heavily rely on non-tax revenues
and cut on developmental budget to
restrict the budget deficit below six
percent of the GDP (Rs 1560 billion)
after slashing revenue collection target
by Rs 200 billion during outgoing
financial
year.
The incumbent government had agreed
with International Monetary Fund (IMF)
to restrict budget deficit at less than six
percent of the GDP (Rs 1560 billion) by
end of June 2014. However, the
government had revised the annual
revenue collection target by Rs 200
billion to Rs 2275 billion for FY2014
from budgetary target of Rs 2475
billion. Therefore, the economic gurus
of the country would depend on nontax revenues and slashing public sector
development programme to cover the
revenue shortfall of Rs 200 billion.
“The government has two options, nontax revenue and cut in PSDP, to control
the budget deficit of the country agreed
with the IMF”, said eminent economist
Dr Ashfaque Hassan Khan while
talking to The Nation. He further said
that government would utilise the Saudi
Arabia’s grant of $1.5 billion (around
Rs 150 billion as non-tax revenue
during outgoing fiscal year. “The grant
worth of $1.5 billion was not mentioned
in budget, as Saudi Arabia dropped it
from helicopter, out of way”, he added.
Talking further, Dr Khan said that
government has other best option
available is to further slash the PSDP,
as earlier it was reduced to Rs 420
billion from budgetary target of Rs 540
billion. The economist was of the view
that government would not release
more than Rs 350 billion by the end of
June 2014 to keep the budget deficit
within the target agreed with IMF. Dr
Ashfaque Hassan Khan said that
government would achieve the target of
budget deficit within FY2014 due to the
aforesaid two steps, non-tax revenue
and
cut
in
PSDP.
It is worth mentioning here that the
government is already heavily relying
on non-tax revenues and provincial
budget surplus during so far period
(July to March) of the outgoing financial
year to control budget deficit. The
government has successfully restricted
budget deficit at 3.1 percent of the
GDP (Rs 811.66 billion) during three
quarters (July-March) of the outgoing
financial year, which was 4.4 percent of
the GDP in the corresponding period
last
year.
According to the latest figures of
Finance Ministry released on Monday,
the government’s expenditures stood at
Rs 3.29 trillion (12.6 percent of the
GDP) against revenue of Rs 2.48
trillion (9.5 percent of the GDP).
Therefore, the budget deficit was
restricted at Rs 811.66 billion (3.1
percent of the GDP) during July-March
FY
2014.
The break-up of total revenues Rs
2477.38
billion
revealed
that
government has collected Rs 1786.19
billion as tax revenue and Rs 691.187
billion as non-tax revenue. In non-tax
revenue,
the
government
has
accumulated Rs 34.65 billion as
development surcharge on gas, Rs
59.49 billion as royalty on oil/gas, Rs
20.92 billion as gas infrastructure
development cess and Rs 67.715
billion
as
foreign
grants.
Similarly,
the
break-up
of
Rs
government’s expenditures Rs 3.29
trillion showed that Rs 909.06 billion
was spent on interest payment, Rs
451.71 billion spent on defence, Rs
60.054 billion on public orders and
safety affairs, Rs 542 million spent on
environmental protection, Rs 6.92
billion spent on heath, Rs 45.151 billion
on recreation, culture and religion, Rs
45.151 billion on education affairs and
services and Rs 1.135 billion on social
protection during the first three quarters
of
current
financial
year.
According
to
the
figures,
the
development expenditures and net
lending stood at Rs 555.81 billion. The
break-up showed that government
spent
Rs
469.929
billion
on
development and net lending stood at
Rs 85.884 billion. The government
spent
Rs
469.929
billion
of
development expenditures, federal
public sector development programme
(PSDP) expenditures recorded at Rs
193.268 billion, provincial PSDP at Rs
199.703 billion and other development
expenditures at Rs 76.96 billion during
July-March of the fiscal year 2013-14.
According to figures, the four provincial
governments recorded surplus budget
of Rs 216.929 billion, as provincial
expenditures were recorded at Rs
1031.098 billion against the revenue of
Rs 1248.03 billion during first three
quarters (July-March) of the current
fiscal year. The Punjab province
recorded budget surplus of Rs 62.986
billion during July-March period of the
year 2013-14, as expenditures were
recorded at Rs 486.63 billion against
the revenue of Rs 549.617 billion. The
Sindh province recorded budget
surplus of Rs 58.63 billion, as
expenditures province was recorded at
Rs 299.49 billion as compared to the
revenue of Rs 358.126 billion during
period
under
review.
Meanwhile, the Khyber Pakhtunkhwa
province recorded budget surplus of Rs
53.59 billion, as expenditures were
recorded at Rs 158.67 billion against
the revenue of Rs 212.285 billion. The
Balochistan province recorded budget
surplus of Rs 41.721 billion. The
expenditure of the Balochistan province
was recorded at Rs 86.278 billion as
compared to revenue of Rs 127.999
billion during period under review.
New textile policy by June 30
APP
ISLAMABAD : Federal Minister for
Textile Industry Abbas Khan Afridi on
Monday
informed
the
National
Assembly that textile policy is being
revised and being redesigned by the
Ministry, which will be completed by the
30th
of
June.
Replaying to a question of Shakila
Luqman, he said new Textile policy will
be implemented for the next five (5)
financial
years,
2014-2019.
The Minister said that Cabinet, while
Tuesday, 13th May, 2014
approving the Textiles Policy 2009-14
approved financing plan of Rs. 188.6
billion, however, up till now a total of
only Rs. 28.75 billion have been
released by the Finance Division.
Replaying to another question, he said
the Pakistan Textiles and Clothing
Exports during July to 10th April 201314 were Rs 1,118 Billion. Pakistan
exports were in 711 HS Tariff Lines to
193 countries in said period. USA,
China, UK, Germany, Bangladesh are
Pakistan’s top five export partners.
Power tariff to be much lower in next four years
OUR STAFF REPORTER
No plan to hike power tariff up to
200 units in budget
LAHORE - The Government has no
plan to increase tariff for the electricity
consumed up to 200 units in the next
budget. The indigenous production of
petrol has been increased from the
72000 barrels to 92000 barrels per day
which is going be improved much in the
coming days for which special
allocation will be made in the next
budget. During the current fiscal year,
the government has planned to cut the
line losses on power by one per cent
which in turn would yield increase in
revenues collection from electricity by
three
per
cent.
Punjab Parliamentary Secretary on
Finance, Rana Babar Hussain told the
media
here
on
Monday
that
International Monetary Fund (IMF) has
successfully completed review on
financial support to Pakistan and
hopefully the Fund would release the
fourth tranche of $550million by June
next. He said the rumours of Pakistan
going bankrupt by June have died
down and now the national economy is
on the take-off after the government
through solid policies has lend it on
solid
foundations.
Babar said the government eyes at
increasing the tax base, which would
hugely help bring up GDP growth,
provide more funds for increasing
employment opportunities and reduce
price hike. He told the media that next
budget will be people friendly and
added, in the next four years the power
tariff would be much lower than the
current one as the prime minister has
given target of putting another
10000mw in the national system in that
period.
TIFA starts today to boost Pak-US trade, investment
OUR STAFF REPORTER
ISLAMABAD - The seventh round of
bilateral
consultations
between
Pakistan and the United States on
Trade and Investment Framework
Agreement (TIFA) would start from
today (Tuesday) in Washington DC.
Federal
Minister
for
Commerce
Engineer Khurram Dastgir Khan would
lead the Pakistan’s delegation in TIFA
council forum, scheduled on May 13 to
15 2014 in Washington DC. “During the
meeting, areas of mutual interest will
be discussed and a long term joint plan
would be developed to give the much
needed boost to the trade and
investment between two countries. The
meeting will also discuss issues such
as
trade
facilitation,
Intellectual
Property
Rights
protection
&
enforcement,
business
outreach
programmes
and
building
entrepreneurship and creating linkages
of Pakistani exporters with US market”,
said the official handout released by
Commerce Ministry on Monday.
Prime Minister Muhammad Nawaz
Sharif and US President Barack
Obama during their meeting held in
October 2013, resolved to resume
discussions on trade and investment
through Pak-US Trade & Investment
Framework Agreement (TIFA) Council
forum.
A
strong
business
delegation
comprising of leading names from
textiles & apparel sector would also be
accompanying Minister for Commerce
for holding a business roundtable with
US buying houses. Minister for
Commerce will also hold a roundtable
with
leading
US
Information
Technology companies to encourage
them to outsource from Pakistan.
Minister would also hold several
bilateral meetings with US Government
officials besides delivering keynote
addresses to different think tanks and
policy
institutes.
Earlier, the TIFA meetings scheduled
for March 12-13 in Washington were
postponed at the request of the
Government
of
Pakistan
and
rescheduling of the meeting would be
decided
mutually.
Remittances up by 11.45pc to $12.89b in July-April
OUR STAFF REPORTER
KARACHI
- Overseas Pakistani
workers have remitted an amount of
$12,894.61 million in the first ten
months (July–April) of the current fiscal
year 2013-14 (FY14), showing a
growth of 11.45 percent when
compared with $11,569.82 million
received during the same period of last
fiscal
year
(July-April
FY13).
The inflow of remittances in July–April
FY14 from Saudi Arabia, UAE, USA,
UK, GCC countries (including Bahrain,
Kuwait, Qatar and Oman), and EU
countries amounted to $3,806.36
million, $2,522.89 million, $2,027.06
million, $1,798.28 million, $1,527.40
million and $355.31 million respectively
as compared with the inflow of
$3,371.59 million, $2,312.01 million,
$1,819.85 million, $1,611.11 million,
$1,331.67 million and $297.69 million
respectively in July - April FY13.
Remittances received from Norway,
Switzerland, Australia, Canada, Japan
Tuesday, 13th May, 2014
and other countries during the first ten
months of current fiscal year amounted
to $857.31 million as against $825.8
million received in the first ten months
of
last
fiscal
year.
In April 2014, the inflow of remittances
from Saudi Arabia, UAE, USA, UK,
GCC countries and EU countries
amounted to $415.09 million, $233.97
million, $206.15 million, $166.07
million, $169.67 million and $36.37
million respectively as compared with
the inflow of $392.28 million, $226.07
million, $183.19 million, $176.14
million, $135.81 million and $28.65
million respectively in April, 2013.
Remittances received from Norway,
Switzerland, Australia, Canada, Japan
and other countries during the tenth
month of the current fiscal year (April
FY14) amounted to $84.51 million.

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