Property: Real estate market in Lahore undergoes correction

Due to the depreciation of the rupee against the dollar and the resultant drop in costs, foreign investors have also purchased property in Pakistan.

LAHORE: After reaching new highs, the real estate market of Lahore has remained stagnant for the last couple of months. It is now going through a correction phase, tweaking down the prices by up to Rs2.5 million for plots in Defence Housing Authority (DHA).

Since DHA properties are the engine of the real estate sector in Lahore, changes in prices there affects prices in other areas too. Investors were waiting for this correction, terming it a positive sign for the real estate market.

Though the stagnation period is taking longer than expected, with minor fluctuations in between, experts are confident of a sharp recovery once the land deals, which have been stalled midway, are settled.

Property prices, primarily in phase six and seven, have already been slashed by up to Rs1.5 million on average, though the correction roughly ranges between 10-17% depending on the prices in different phases.

Property prices in phase six, for instance, were around Rs18.5 million at their peak, whereas phase seven saw prices as high as Rs13 million.

In areas where property prices are low, like phase nine where prices are below Rs5 million, will be connected to the main city through infrastructure investments, and investors are hopeful for a sharp increase in such areas.

The prices of real estate in other popular societies, like Bahria Town and Johar Town, are also stagnant, and are expected to gain momentum once DHA clears stalled property deals, reviving the process.

The depreciation of the rupee against the dollar has also contributed towards a boom in the market. Owing to the resultant drop in costs, foreign investors have also purchased property in Pakistan, though their share in the total is still small.

“If a foreign investor is investing in Pakistani market, after exchanging the currency let’s suppose at Rs100 per dollar, and making a profit and clearing the transaction he will want to buy back the dollars at the same rate,” said Ramzan Sheikh, Chairman of Mainland Husnain Limited, a construction company, while talking to The Express Tribune.

Since the rupee is relatively stable now, foreign investors are cautious as the currency could strengthen now, in which case their profits will be hurt.

However, the fluctuating exchange rate has also hurt property development firms who import most of the material required for their development schemes. This is also playing a role in stagnation of the real estate market, as companies put development schemes on hold. However, a majority of the private investors are now relying heavily on this sector, making it unlikely for the market to be stagnant for too long.

Looking ahead: Textile industry optimistic about growth prospects

While the standard GSP allows 176 developing countries and territories to enjoy easy access to EU markets, the upcoming GSP Plus will be limited to 89. PHOTO: FILE

KARACHI: 

The textile industry has seen a strong growth in recent months but most industry players are pinning their hopes on the expected approval of European Union’s (EU) Generalised System of Preferences (GSP) Plus status for Pakistan in January 2014.

For them, the GSP Plus is a game changer for the Pakistani textile industry, as it is expected to boost annual exports by $1 billion.

“Textile exports have increased by 4% in the first three months of fiscal year 2013-14 but this increase is below our expectations. What is more important for us is the expected grant of GSP Plus status by the EU. If we get that, our textile exports will jump by at least $1 billion a year,” All Pakistan Textile Mills Association (Aptma) Chairman Yasin Siddik told The Express Tribune.

Textile exports in September 2013 sharply increased by 16% compared to August 2013. Overall textile exports in the first three months (July to September) of 2013-14 jumped to $3.58 billion, up a significant 9% year-on-year (YoY) and a decent 4% quarter-on-quarter (QoQ).

“I am hoping to see more growth in exports in the ongoing quarter (October to December),” said Siddik, who believes that exports of both value added and non-value added products would see a decent rise in coming months.

Siddik added that textile exports must increase by at least $1 billion in case Pakistan wins the GSP Plus trade preference facility.

Analysts believe that the increase in textile exports is mainly aided by stable cotton prices – a key raw material – and depreciating rupee against the dollar over the last few months.

Any increase in cotton prices, they say, will increase profit margins of textile companies, especially in the second half of fiscal year 2013-14.

Analysts also stress that textile exporters that have higher share of finished or value added products will benefit more if Pakistan gets the GSP Plus status.

“Whatever increase we see in textile exports in coming months, it will never be comparable to the jump that we may enjoy after GSP Plus,” said Gul Ahmed Textile Mills Executive Director Ziad Bashir.

“Exports are expected to sustain themselves in the ongoing quarter but I do not think they will increase significantly,” added Bashir.

Pakistan has assured the EU that it is going to implement most of the international conventions required to qualify for the GSP Plus. Most importantly, Pakistan has told the Europeans that it will continue the moratorium on capital punishment – one of the most important EU demands before granting the GSP Plus facility.

GSP Plus is a trade arrangement that allows exporters from developing countries to pay lower or no duties on their exports to the EU.

Countries that want to get GSP Plus need to effectively implement as many as 27 international conventions on environment issues, good governance, labour rights and human rights.

While the standard GSP – which will stay in force until the end of 2013 – allows 176 developing countries and territories to enjoy easy access to EU markets through various duty reductions for certain product lines, the upcoming GSP Plus will be limited to 89 low and lower middle-income countries.

Since many of the countries that enjoy the GSP status are not expected to fall in the GSP Plus group, Pakistan would be in a position to export more of its products to the EU on low duties.

Did you know?: Mallika Sherawat washes her hair with mineral water!

Despite staying at a five-star hotel, Mallika demanded containers of mineral water to wash her hair. PHOTO:FILE

We have all read about starry tantrums by female leads but this one beats any other. Actor Mallika Sherawat, who is currently being seen on her reality TV show The Bachelorette India, seems to be bugging the makers with unreasonable demands.

According to the Times of India, even though Mallika was staying at a posh five-star hotel in the Indian city of Udaipur, she doubted the quality of water at the hotel. She said that the water was making her hair dry. Hence, in order to nourish her tresses, she demanded containers of mineral water!

However, this isn’t the first time that the controversial actor has made a peculiar demand. In fact, she is known to make unreasonable requests during film shoots and otherwise. For example, while promoting a reality show, the actor had demanded that she should only be given alphonso mangoes. Also during the shooting of her film Kismat Love Paisa Dilli with Vivek Oberoi last year, she insisted that six members of the staff should be allowed to travel in business class with her!

Royalty, much?

New taxes: Govt favours consultation with businessmen on property tax

No new tax to be introduced without keeping businessmen in the loop, official. CREATIVE COMMONS

FAISALABAD: 

Director General Punjab Excise and Taxation Department, Nasim Sadiq, informed members of the Faisalabad Chamber of Commerce and Industry (FCCI) on Saturday that no new property tax will be imposed without consultation with the business community, asking the FCCI to forward its proposals on proposed property taxes and valuation tables within a week.

He told the audience that he had been in close contact with businessmen in Faisalabad during his tenure at the District Coordination Office. He appreciated the social capital invested by businessmen, which he called a worthy example and a role model for the country.

He said during his tenure, approximately Rs8 billion was spent on development projects in the city, out of which Rs5 billion was contributed by the business community of Faisalabad.

He said Punjab Chief Minister Mian Shahbaz Sharif has instructed everyone to resolve all problems with regard to property taxation amicably. He assured the businessmen of consulting them during the decision-making process pertaining to new taxes.

He said that he is fully aware of the deteriorating condition of business in Faisalabad due to gas and electricity shortages.

While presenting his welcome address, FCCI President Engineer Suhail bin Rashid said that Faisalabad is the third industrial hub and second largest revenue generator in the country. He said that proposed tax rates for immovable properties are not acceptable to the business community.

He said that the declaration of valuation tables was not based on ground realities, stating that Faisalabad could not be classified in Category ‘A’ along with cities like Lahore. He said that the proposed increase in taxation has already disturbed factory owners, private schools, hotels, restaurant owners, hospitals and even the common citizens.

He said that owing to higher inflation, shortage of electricity and gas for the industries, higher prices of industrial inputs, new taxes being introduced by the Federal Board of Revenue and high bank mark-up rates have made it difficult for the business community to pay increased property taxes and called for the status quo to be maintained with some flat rate increase, if necessitated

Webber claims 13th career pole

Red Bull Racing's Australian driver Mark Webber drives during the qualifying session at the Yas Marina circuit in Abu Dhabi on November 2, 2013 ahead of the Abu Dhabi Formula One Grand Prix. PHOTO: AFP

ABU DHABI: 

Australia Mark Webber grabbed the 13th pole position of his career yesterday when he clocked the fastest lap in a tense qualifying session as Red Bull swept the front row of the grid for today’s Abu Dhabi Grand Prix.

The 37-year-old, who retires from Formula One at the end of the season, recorded one minute 39.957 seconds to edge out newly-crowned quadruple world champion teammate Sebastian Vettel.

Webber, who will start from the front of the grid for only the second time this season, equalled the Australian record of 13 poles set by Alan Jones, who was celebrating his 67th birthday yesterday.

In a thrilling finale to an intriguing day, the two Red Bull men crossed the line after the chequered flag to clock their best laps, but battling Briton Lewis Hamilton failed to do the same as he spun his Mercedes in the final part of his lap.

“Fantastic guys, thank you for a fantastic job,” said Webber on the Red Bull team radio.

“Not the smoothest path to the start of Q2 or Q1, we were not electric, but we changed the car quite a bit and I got more and more comfortable as the session went on.”

Hamilton ended up fourth and will start alongside his Mercedes teammate German Nico Rosberg, who was third fastest.

“Something broke at the rear of the car,” said a disappointed Hamilton, who has twice previously taken pole at the spectacular Yas Marina circuit.

Ferrari-bound Finn Kimi Raikkonen of Lotus was fifth ahead of German Nico Hulkenberg of Sauber with Frenchman Romain Grosjean seventh in the second Lotus.

Brazilian Felipe Massa was eighth fastest ahead of Mexican Sergio Perez of McLaren and 10th placed Australian Daniel Ricciardo of Toro Rosso.

Newcastle shock Chelsea in EPL tie

Newcastle United's Loic Remy (R) scores a goal against Chelsea during their English Premier League soccer match at St James' Park in Newcastle, northern England November 2, 2013. PHOTO: REUTERS

LONDON: Chelsea were prevented from taking over at the top of the Premier League table after being dealt a shock 2-0 defeat at Newcastle United.

Victory would have taken Jose Mourinho’s side above leaders Arsenal, who host Liverpool later today, but instead they fell to second-half goals by Yoan Gouffran and Loic Remy on a rain-soaked afternoon in northeast England.

It was Chelsea’s second defeat of the campaign and their second consecutive loss away to Newcastle, while Mourinho has now gone four league games without victory at St James’ Park in his two spells as Chelsea coach.

Chelsea’s best chances of the first half both came from corners and fell to John Terry, who saw one header come back off the crossbar and another headed off the line by a stooping Davide Santon.

The visitors were happy to cede possession to their hosts, but although Newcastle struggled to create chances in the first half, they began to make inroads in the second period.

Chelsea goalkeeper Petr Cech was called upon three times in five minutes to keep Newcastle at bay, thwarting Moussa Sissoko, Remy and Gouffran in quick succession as Alan Pardew’s men took the upper hand.

Mourinho reacted by sending on Willian for Juan Mata, only for Newcastle to open the scoring in the 68th minute when Gouffran converted Yohan Cabaye’s free-kick with a diving header.

Mourinho introduced Andre Schuerrle and Samuel Eto’o, and the Cameroonian felt he should have been awarded a penalty soon after coming on when his goal-bound half-volley struck the arm of Mapou Yanga-Mbiwa.

Nothing was given though, and after Willian, Eto’o, Schuerrle and Eden Hazard all went close to an equaliser, Remy swept home a neat cut-back from Vurnon Anita in the 89th minute to seal Chelsea’s fate.

Chelsea’s defeat saw them slip to third place, with Liverpool overtaking them on goal difference, while Newcastle climb to ninth.

South Africa series: Teams aim for batting resurrection

Spinners Afridi, Ajmal and Hafeez took a combined six wickets at a run rate of under three an over to help Pakistan win the second ODI by 66 runs. PHOTO: AFP

Pakistan captain Misbahul Haq warned his team against complacency after their series-levelling, 66-run win against South Africa in the second One-Day International (ODI), stating there were persistent problems in Pakistan’s batting that needed to be rectified.

“We shouldn’t relax after winning the second ODI and we still need to improve,” he said, according to ESPNcricinfo. “Our batsmen are getting good starts but aren’t converting them so we need to rectify that. We have a very tough series on our hands; they are very tough opponents and are going to give us a hard time.”

South Africa slumped to their second lowest total against Pakistan when they were bowled out for 143 in 40.4 overs chasing a modest 210-run target.

Leg-spinner Shahid Afridi (three for 26), pacer Mohammad Irfan (three for 53) and off-spinner Saeed Ajmal (two for 15) rocked the Proteas to level the five-match series at 1-1.

Misbah said the morale of the team was high after staging a comeback.

“Obviously we lost the first match from a winning position and when such things happen you get disappointed. However, after this win the morale is high and we needed that comeback win.”

De Villiers feels pressure over SA batting

South African captain AB de Villiers admitted he was feeling pressure over shortcomings in batting.

“To be very honest I am feeling the pressure,” said De Villiers.

“But I am enjoying my captaincy more than ever and feel that I am getting good response from the guys, especially on this tour,” he said, praising the Pakistani spinners.

“Pakistan have two bowlers in the top five in one-day rankings and its world class spinners we are playing against, but once again I have full confidence that we will come back.”

De Villiers said his team was working hard to overcome batting woes.

“We are all working, we are doing pretty much everything, it’s a matter of one or two guys to put their hands up and give that performance.”

South Africa will hope Hashim Amla boosts their batting after he is expected to rejoin the squad in time for the third game in Abu Dhabi on Wednesday. Spearhead Dale Steyn will also join the team after missing the first two one-days to have rest at home.