Millers ask government to clear tax rebates

Pakistan’s textile exports crossed the $13-billion benchmark in the outgoing fiscal year, and would be achieving far better results if circumstances remained conducive. PHOTO: FILE

FAISALABAD: 

On Saturday, the textile industry of the country asked the government to expedite the process of payment of tax refunds to allow the millers to achieve maximum efficiency and boost exports significantly.

Conveying the demand, Pakistan Textile Exporters Association Chairman Sheikh Ilyas Mehmood said that huge amounts of cash of the textile industry was stuck in sales tax, local taxes drawbacks besides customs and federal excise duty rebates creating severe liquidity crunch within the industry. Once the cash is released, exporters can deploy the capital into expanding businesses, which in turn will help the country’s exports earnings grow.

Pakistan only held 1.5% of the global textile market share, which means that the industry had strong prospects to grow, Mehmood added.

Pakistan’s textile exports crossed the $13-billion benchmark in the outgoing fiscal year, and would be achieving far better results if circumstances remained conducive.

“The liquidity crunch will result in havoc with the tempo of exports,” Mehmood said.

The textile is industry is aiming to extract maximum benefits from the Generalised System of Preferences (GSP) plus facility, which is expected to be granted in January 2014, and touch $15 billion export target in the current fiscal year, which will all go in vain in the absence of adequate funds.

The PTEA chairman was of the view that the textile sector of the country had taken a severe hit at a time when many of the leading players had invested huge amounts of capital in expansions to meet the growing needs of the global export market.

He said that the energy crisis had almost destroyed the manufacturing and industrial sectors of the economy and resulted in a significant fall in production.

The prevailing economic, financial and industrial crises had badly affected industrial and trade activities, productivity and employment and left the textile sector of the country in doldrums, he said. Exporters were working dire business climate as the cost of inputs was increasing day by day rendering them unable to compete in the international market.

PTEA chairman asked the government to bail out the industry from the crisis by removing hurdles and provision necessary incentives to provide stimulus to textile exports. He requested early released of stuck tax rebates.

Stock fashion staples for evergreen style

Fashion basics every woman should own, and for which they shouldn't mind spending a little more. PHOTO: FILE

LONDON: Women always desire to have a wardrobe full of trendy clothes and accessories, but first it is essential to get the fashion basics right. Stock your closet with fashion staples, which will stand the test of time.

Femalefirst.co.uk lists fashion basics every woman should own, and for which they shouldn’t mind spending a little more.

Jeans: Shopping for the right pair of jeans can be tough. They seem to fit well in the shop, but once you’ve worn them on for five minutes, you may end up tugging at the waist band constantly. The idea is to buy them a little tight because denim stretches as it’s worn. Whether it’s a slim fit, straight or bootcut style, make sure your jeans flatter your frame.

White shirt: This is a must have and a classic! Layer it underneath a jumper, wear it to work with black trousers and undo a button when you’re heading out on a date. The white shirt is a classic.

Cashmere: Whether it’s a jumper or a cardigan, whichever suits your style best, all women should own a piece of Cashmere. It is something you can snuggle into as the temperature drops.

Black Dress: This never goes out of fashion. But make sure it fits right and makes you feel comfortable.

Coat: A good strong wool coat will never look a misfit in your wardrobe. Have one in black, navy or grey. These are like an investment, so choose colours that aren’t trend led and will come back into style every year. Again, buy a style that suits your frame.

Leather handbag: Stick to a leather handbag in black, navy, grey or tan – muted colours that can be worn forever and with whatever. Make sure it is big enough to accommodate all essentials.

Dar briefs US treasury adviser on macroeconomic stabilisation plans

The government has initiated structural reforms to expand the tax base, resulting in 20% boost in tax revenues. PHOTO: ZAFAR ASLAM/EXPRESS/FILE

WASHINGTON: 

On Saturday, Finance Minister Ishaq Dar briefed the US Under Secretary of Treasury for International Affairs Lael Brainard about the country’s efforts towards macroeconomic stabilisation.

The Under Secretary leads the development and implementation of policies in the areas of international finance, trade in financial services, investment, economic development and international debt.

Dar, who is in Washington to spearhead a Pakistani delegation to the International Monetary Fund (IMF)-World Bank annual meetings, also informed Brainard about the actions taken by the government in the first four months, saying that the measures of the new government had put the economy back on track, according to an aide to the finance minister.

Dar highlighted that the government had cleared the crippling circular debt of over Rs550 billion, and in doing so had added 1,700 megawatts (MW) to the national grid. Also, the government had initiated structural reforms to expand the tax base, resulting in 20% boost in tax revenues.

Dar said that these steps had restored the confidence of investors and multilateral agencies, which is evident from the fact that foreign direct investment inflows had clocked in more than double in the first quarter and the overseas chamber of commerce had improved Pakistan’s rating from negative 34 to plus two.

The finance minister said that the government had set an ambitious target for the economy in the next three years which included reducing the fiscal deficit by half, doubling the gross domestic product (GDP) growth rate and boosting investment by 50%.

The measures taken and the ambitious target had led to the approval of the bailout programme by the IMF. The Washington-based fund, he said, had endorsed the policies of the incumbent government.

Brainard appreciated the bold decision taken by the new government to revive Pakistan’s economy. She observed that these steps would help create employment opportunities and pull investment into the country. She assured the finance minister of all possible help to achieve the targets set by the government.

Later, Dar addressed a gathering of a group of Pakistanis and Americans at the Embassy of Pakistan, which hosted a dinner in honour of the visiting finance minister and his team of economic managers including Finance Secretary Dr Waqar Masood Khan, State Bank of Pakistan Governor Yaseen Anwar, and economic affairs division secretary.

Charge d’ Affaires Dr Asad Majeed Khan welcomed the finance minister and praised his expertise and focus in dealing with the economic challenges faced by the country.

In his wide-ranging speech, Dar touched upon a string of structural reforms and measures that the government launched right away and assured the guests that the government was pursuing a clear-cut, target-oriented roadmap for economic rebound.

He cited a number of hopeful positive economic indicators that have emerged in the wake of the new policies in the last four months. Regarding energy issues, he said the government is taking immediate, medium and long-term steps to meet the fast-increasing energy needs of the country. 

Pakistan tries to attract American private sector

“We are implementing reforms and policies; we mean business, and Pakistan will be a good host,” Dar told the gathering of prominent business leaders. DESIGN: CREATIVE COMMON

WASHINGTON: 

Finance Minister Ishaq Dar Friday invited American entrepreneurs to make use of lucrative investment opportunities existing in Pakistan, as he assured businessmen of Islamabad’s commitment to good governance and transparency to facilitate business and economic activity, while visiting the United States (US).

The finance minister is trying to meet with as many world leaders as possible, to attract investment for Pakistan.

Speaking to members of the US-Pakistan Business Council, Senator Dar expounded the vast investment potential the country offers in the fields of energy, gas and oil exploration.

“Transparency, merit, due process, good governance are going to be hallmarks of the government,” he stated.

“We are implementing reforms and policies; we mean business, and Pakistan will be a good host,” he told the gathering of prominent business leaders.

The new government, he said, is focused on addressing three inter-related problems including energy, economy and extremism.

On steps towards meeting Pakistan’s exponential energy requirements, the minister spoke of the Dasu and Diamer-Bhasha dams and that completion of these projects would help ensure smooth flow of energy.

He informed the business and corporate leaders of the reforms and measures the government had taken to check inflation, curb fiscal deficit, attract foreign investment, bolster revenues, step up tax collection.

As a result of the new government’s steps, the international business and financial institutions’ confidence in the country’s economic development potential had increased tremendously, said Dar.

The minister, who is heading a Pakistani delegation to annual IMF-World Bank meetings, is accompanied by Finance Secretary Dr Waqar Masood Khan, Governor State Bank Yaseen Anwar and Secretary Economic Affairs Division and Nargis Sethi.

Earlier, Esperanza Jelalian, Executive Director of the Council, welcomed the Minister.

In her opening remarks, Carolyn L Brehm, Vice President of the US Pakistan Business Council, spoke of the great economic potential of Pakistan and its advantageous geographic location.

“Our members see value in Pakistan’s geographical proximity — it has a talented workforce,” she said, noting that a number of companies are running profitable businesses in the country.

Capacity constraints: Garment makers unenthusiastic about GSP Plus

This statement is in contrast to previous statements by the APCMA, which expects massive increase in exports. PHOTO: FILE

LAHORE: 

Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) on Saturday said that the local garment industry is not fully prepared to take advantage of duty-free access to the EU (European Union) market under Generalized System of Preferences (GSP) Plus status mainly due to shortage of raw material, said PRGMEA (North Zone) Senior Vice Chairman, Jawwad A Chaudhry.

This statement is in contrast to previous statements by the All Pakistan Cotton Manufacturers Association, which expects massive increase in exports.

He urged the government to relax the import policy to empower value-added textile industry to get the maximum benefit of GSP Plus status, as the country had no input except cotton.

LNG import: SSGC to get PPRA’s approval for gas terminal contract

When approached, Petroleum Secretary Abid Saeed denied that the ministry had asked SSGC to get PPRA’s approval for the award of terminal contract. PHOTO: FILE

ISLAMABAD: 

The Ministry of Petroleum and Natural Resources has refused to seek approval of Public Procurement Regulatory Authority (PPRA) for award of liquefied natural gas (LNG) retrofit terminal contract to 4Gas Asia and has instead asked Sui Southern Gas Company (SSGC) to approach the PPRA for its nod.

“The petroleum ministry has asked SSGC to seek clarification of PPRA rules as it is going to award the contract to 4Gas Asia,” a source said, pointing out that an SSGC board member had objected to any extension in bid validity, saying it was against PPRA rules. Maximum allowable extension in bid validity had ended on August 18, 2012.

According to sources, the SSGC board of directors has given the go-ahead to the LNG retrofit terminal project for import of 500 million cubic feet of LNG per day (mmcfd) and has also agreed on giving the contract to 4Gas Asia – a Dutch company – depending on PPRA’s approval.

The board has also recommended to the federal government to approve the project which will bring LNG to the country to meet its growing energy needs. Earlier, a board member raised questions over the project, which the board overrode with majority vote.

Sources said SSGC had also sought legal opinion from experts who declared that the project structure was in line with PPRA rules. This is a unique project in which SSGC would not have to make any investment.

A senior government official said the present government had approached Qatar to strike an LNG import deal on government-to-government basis. In response, Qatar asked Pakistan to commit to setting up an LNG terminal before signing the import deal.

“Now, the LNG retrofit project will be tabled before the Economic Coordination Committee (ECC) of the cabinet for approval of the award of contract to the qualified bidder for establishing the LNG handling facility at Progas Terminal owned by SSGC after seeking clarification of PPRA,” the source said.

When approached, Petroleum Secretary Abid Saeed denied that the ministry had asked SSGC to get PPRA’s approval for the award of terminal contract. “We have received the minutes of the SSGC board meeting and are examining them,” he said.

The SSGC board considered the price offered for the project to be competitive. The terminal will be completed in 22 months at an estimated cost of $163 million. The qualified bidder has quoted tolling tariff at 80 cents.

In India, LNG tolling price ranges from $0.605 for 1,400 throughput to $1.106 per mmbtu for land terminals. In Indonesia, tolling price is $1.8 per mmbtu for handling LNG at a floating terminal and $1.2 per mmbtu for a land terminal.

Average tolling price based on the year 2010 was $0.73 per mmbtu in the US and Canada, $0.87 in China, $0.81 in Europe, $0.89 in South Korea and Japan, $0.72 in the Middle East and $0.71 in Southeast Asia

Adnan Sami asked to leave India by extremist group

Sami's visa to India reportedly expired on October 6, 2013. PHOTO: FILE

MUMBAI: Pakistani musician Adnan Sami who has adopted India as his second home, was asked to leave the country following expiry of his visa, Press Trust of Indiareported on Saturday.

The film wing of the extremist Raj Thackeray-led Maharashtra Navnirman Chitrapat Karmachari Sena (MNS ) told Sami to leave the country after his visa expires.

“Sami met us at our office here today, seeking our cooperation. We told him to leave the country as his visa has expired,” MNS film wing president Amey Khopkar said.

“We told Sami that our priority would be our artistes,” Khopkar told PTI.

Sami had reportedly told a family court that he had a Pakistani passport and was residing in India on the basis of visa granted to him from time to time. His visa was reportedly valid from September 26, 2012 till October 6, 2013.