Latest peace overtures indicate Afghan Taliban’s change of heart

Latest peace overtures indicate Afghan Taliban’s change of heart. PHOTO: AFP

ISLAMABAD: 

In a sudden shift from their earlier stance, dozens of senior Afghan Taliban leaders have decided to hold a dialogue with President Hamid Karzai to reach a political solution for Afghanistan ahead of the withdrawal of foreign troops by the year’s end.

Agha Jan Mutasim, who served as the finance minister in the Taliban cabinet and is a former close aide of Mullah Omar, organised a meeting of senior Taliban leaders in UAE this week. Speaking to The Express Tribune on Friday via phone from Dubai, Mutasim said he will soon announce a specific address for intra-Afghan dialogue to avoid a civil war after Nato troops leave the country.

In remarks earlier this week, Mutasim claimed the Dubai meeting was attended by former Taliban cabinet ministers, four senior diplomats and top military commanders who had been involved in fighting foreign forces.

Mutasim declined to divulge their names citing security concerns. “They are very important personalities and I will not disclose their names as it could put their lives at risk,” he added, when asked to reveal names of the participants.

He, however, said he will soon announce names of negotiators for intra-Afghan dialogue, adding they will not hold talks with foreigners in the first phase and will only do so after Afghans are united over the future of the their country.

Mutasim, who had been shot and injured in Karachi in 2010, and later shifted to Turkey, had returned to Dubai to launch his political activities and efforts to encourage Taliban leaders to join his peace move.

The initiative coincides with the trilateral summit in Ankara where Prime Minister Nawaz Sharif reiterated his support for the Afghan peace process at a joint news conference with President Karzai and Turkish leaders.

It is not yet clear if Pakistan is behind the latest move. However, it seems Pakistani leaders are aware of the development as Prime Minister’s security adviser Sartaj Aziz said in Islamabad this week that President Karzai is in informal contact with some Taliban leaders.

Pakistani officials have admitted to facilitating the Qatar process that faced deadlock days after the Taliban opened their office in Doha in June last year. Afghan officials had earlier been upset at Islamabad’s inability to encourage Taliban leaders, whom they claim live in Pakistan.

The Afghan Taliban have evaded comments on the latest move and their spokesman Zabihullah Mujahid told The Express Tribune via email that he is “unaware of any such thing.” Mutasim had issued a three-page statement after the UAE meeting and also spoke to the media, but Mujahid did not offer any of his input. The Taliban have neither publicly disowned nor backed the latest initiative. This is the first time a senior Taliban leader has publicly announced to hold talks with the Karzai regime and begin the intra-Afghan dialogue. It will be premature to expect much from this process, but it could win support in and outside Afghanistan in view of the drawdown.

Mutasim had said earlier they had taken cue from Pakistan after authorities here began negotiating with the Taliban following several years of conflict and peace agreements.

In a statement sent to The Express Tribune on Friday, the Dubai-based Taliban leaders stated: “If we want our country to remain free from foreign domination, we have to launch an inclusive intra-Afghan dialogue immediately.”

The Dubai initiative could be a message for the Afghan Taliban leadership to avoid any rift that could weaken them further as they must know that durable peace can only be restored in war-ravaged Afghanistan by Afghans themselves.

Principled’ stance: New Delhi CM resigns over graft bill row

Delhi's Chief Minister Arvind Kejriwal (C), chief of the Aam Aadmi (Common Man) Party (AAP), addresses his supporters after announcing his resignation from the party headquarters in New Delhi February 14, 2014. PHOTO: REUTERS

NEW DELHI: 

It was the shortest tenure any government in Delhi has ever had. After just 49 days in power, Delhi Chief Minister Arvind Kejriwal and his cabinet colleagues from the Aam Aadmi Party (AAP) resigned from the Delhi government on Friday, leaving their rivals – the Congress and the Bharatiya Janata Party (BJP) – with what may prove to be an even bigger political headache.

“I am a small man and I have come from among you. To stick to our principles, we are ready to give up the chief minister’s post a hundred times over,” Kejriwal said at the end of a day of high drama, emotion and passion.

“I believe in the constitution of India. I took oath of office to uphold the constitution, not to uphold the orders of the central government,” he told a crowd of charged AAP supporters, all of whom were waving a broom – the party’s election symbol.

Kejriwal resigned after the Delhi Assembly defeated a motion to pass the Jan Lokpal bill, an anti-corruption legislation which seeks the appointment of an independent body to investigate graft cases.

The bill had to be routed through the lieutenant governor of Delhi and the home ministry since Delhi is a centrally administered territory. Kejriwal and his colleagues had objected to this route, saying the Constitution was silent on the central government having any jurisdiction on the activities of the state government or the assembly.

A day before, fisticuffs broke out in the legislative assembly when BJP clashed with AAP.

The Congress and BJP have said they have objections not against the Jan Lokpal bill, but the manner in which Kejriwal and his colleagues were forcing the agenda and projecting themselves as the sole crusaders against corruption.

Kejriwal had accused the two parties of banding together against him after his government filed police complaints of corruption against India’s biggest industrialist, Mukesh Ambani. The Ambanis, Kejriwal alleged, colluded with the ruling Congress government to inflate the price of natural gas extracted from offshore oil blocks by the Ambani group.

He claimed the Congress and BJP had taken a stance against his government after being influenced by the Ambanis – an allegation hotly denied by the two parties.

Kejriwal’s resignation will free him and his party members from the responsibility of running the capital and will allow them to focus on campaigning all over the country – something the Congress had hoped to avoid when it helped the AAP form the government.

Delhi Lieutenant Governor Najeeb Jung will rule Delhi for the foreseeable future.

Youth Festival: Lahore prepares for human flag record

Pakistani youths make the biggest human national flag at the National Hockey Stadium in Lahore on October 22, 2012. PHOTO:AFP

LAHORE: 

“Arrangements for an attempt to break the record for the largest human flag have been completed. As many as 29,040 people participate in the event,” Minister for Education and Sports Rana Mashhood Ahmed Khan said on Friday.

He was addressing a press conference.

“The youth will try to set as many as 100 world records,” he said.

Sports Board Director General Usman Anwar and Guinness World Record officials were also present.

The minister said 150,000 people would also attempt the record for the national anthem on February 19.

“I am proud of the enthusiasm shown by young boys and girls in preparations of these events,” he said.

The minister rejected the impression that students were being dragged to the PYF events forcibly.

He said security arrangements for the world record attempts had been finalised.

Guinness World Records representative Leo Wiger praised the hospitality of the government.

He said he had visited 46 countries but had never received such love and respect anywhere. A full dress rehearsal for the human flag for the Guinness World Record (GWR) was held at the National Hockey Stadium.

Division-level games

The divisional-level games of the Punjab Youth Festival entered the concluding phase on Friday.

On the sixth day of the games, 4,499 competed in various games and 1,308 moved to the next round.

In Rawalpindi, out of 660 players, 159 returned successful. As many as 93 athletes took part in various contests in Sargodha and 59 were declared winners. In Gujranwala division, out of 674 players, 267 moved to the next round.

Faisalabad division saw 375 players and 99 people moved to the next round.

As many as 393 athletes competed from Sahiwal division and 187 people moved to the next round.

Out of 461 players of Multan division, 167 were declared winners. As many as 43 people out of 132 participants from Bahawalpur division moved to the next round.

In Lahore, 909 competed in several PYF events and 144 moved to the next round.

DHA-I beat Walton Club for the rugby title at the Defence Sports Complex. At the Punjab Stadium, Lahore defeated Kasur in the touchball final.

Pakistan Touchball Association secretary Zahoor Ahmed and Punjab Touchball Association president Sayed Tahir Shah were the guests of honour on the occasion.

Lahore beat Sheikhupura by nine wickets to clinch the Punjab Youth Festival (PYF) 2014 Lahore Division’s cricket hardball event trophy at the Iqbal Sports Complex

Spinning ahead: Nishat Mills books Rs3.85b profit

Good business: 7% was the increase in sales YoY to Rs28.1 billion in 1HFY14. PHOTO: NISHAT GROUP

KARACHI: 

Nishat Mills Limited (NML) has posted a strong net profit of Rs3.85 billion for the six-month period ending on December 31, 2013, up 35% compared to Rs2.85 billion in the corresponding period of the previous year.

Earnings per share (EPS) increased to Rs10.96 against EPS of Rs8.13 in the same period the previous year.

In 2QFY14, the company registered a profit after tax (PAT) of Rs2.3 (EPS of Rs6.29), up 45% year on year (YoY) and 27% quarter on quarter (QoQ) respectively.

In line with market expectations, NML’s sales grew by 7% YoY to Rs28.1 billion in 1HFY14 mainly due to the rupee depreciating against the dollar, leading to higher gross margins of 18.6% compared to 16.7% in the corresponding period of the last year.

The company also received support from higher other income that jumped significantly by 39% YoY, while its finance cost remain almost flat.

However, the increase in administration and distribution expenses, which rose by 13%, curtailed the growth of the company.

When asked, JS Global Capital analyst Bilal Qamar said that NML has more exports to the United States (US) compared to Europe, so its exports may not get a big boost under the European Union’s (EU) GSP Plus scheme.

Pakistan was one of 10 countries to be allowed access to the GSP Plus market by the EU, which will result in increased exports especially for the textile sector.

BMA Research reported on Friday that the sharp growth in NML’s profitability is primarily attributable to robust rebound in core operations led by 10% depreciation in rupee against the dollar.

With its results, the company also announced that it will establish a new wholly owned subsidiary, namely Nishat Spinning (Pvt) Limited, with an authorised capital of Rs10 million divided into 1 million ordinary shares.

The company is also increasing its investment in its associate MCB Bank and Nishat Hotels and Properties Limited to the tune of Rs2.6 billion (within a period of three years) and Rs1 billion respectively.

NML has also proposed a loan of Rs1.5 billion to Nishat Power Limited (NPL) when requested and required by the latter.

This loan will provide NML a return of not less than three-month KIBOR plus 200 basis points (bps) and will be repayable within three years period starting from the date of approval by shareholders.

Lastly, NML is also to submit a Pre Qualification Document (PQD) to participate in the bid (as a consortium with other group companies that are subject to board approvals) in Punjab Power Development Board’s coal based Thermal Power Project of 660MW.

Engro makes strong comeback

Earnings per share (EPS) of the company jumped to Rs16.01 for the year ended December 31, 2013. PHOTO: FILE

KARACHI: 

Engro Corp – the biggest conglomerate in Pakistan – has posted a record consolidated profit after tax of Rs8.18 billion for the year ending on December 31, 2013, up 529% compared to a depressed profit after tax of Rs1.3 billion in 2012.

Earnings per share (EPS) of the company jumped to Rs16.01 for the year ended December 31, 2013 compared to an EPS of Rs2.61 in 2012.

The company revenue jumped sharply to Rs155.4 billion in 2013 against Rs125.2 billion in 2012. The record profitability was achieved by a turnaround in its fertiliser business coupled with an impressive performance by Engro Polymer, a healthy contribution by Engro Vopak and EXIMP’s return to profitability.

Engro Fertilizer

During 2013, the company made a profit after tax of Rs5.49 billion compared to a loss of Rs2.93 billion last year. Engro Fertilizer’s revenue for the year was Rs50.12 billion compared to Rs30.62 billion in 2012.

Sales of the company’s blended fertilisers (Zarkhez and Engro NP) for the year increased by 21% to 95,000 tons compared to 80,000 during 2012. Pakistan’s overall potash market remained stable at 20,000 tons (nutrient basis) during 2013. The company undertook an Initial Public Offering (IPO) of 75 million ordinary shares in fourth quarter of 2013 (4QCY13).

Engro Foods

2013 was a test of the company’s resilience due to external challenges, coupled with distribution issues, which impacted its volumes and profitability. Engro Foods’ revenues declined from Rs40.16 billion in 2012 to Rs37.89 billion in 2013, while net profits decreased from Rs2.59 billion in 2012 to Rs1.09 billion in 2013.

Engro EXIMP

EXIMP’s revenues during 2013 were Rs32.85 billion compared to a revenue of Rs20.97 billion in 2012. The company’s consolidated profit after tax stood at Rs59 million in 2013 as compared to a loss of Rs426 million in 2012. The profitability of fertiliser and commodity trade was off-set by losses in the rice business despite improvement in operational parameters.

Engro Powergen

Engro Powergen Qadirpur earned a net profit of Rs1.45 billion during 2013 compared with Rs2.1 billion in year 2012.

During the year 2013, the Qadirpur Plant demonstrated billable availability of 83.1%. It dispatched a total Net Electrical Output of 1,334 Gigawatt hours to the national grid with a load factor of 71.7% as compared to 93.8% in 2012. Overdues from Pakistan Electric Power Company stood at Rs1.248 billion as on December 31, 2013, against overdues of Rs5.787 billion as on December 31, 2012. Overdue amount payable to Sui Norther Gas Pipeline Company on December 31, 2013 was Rs386 million compared to Rs2.68 billion in 2012.

Polymer and Chemicals

During 2013, the company posted a profit of Rs707 million compared to Rs77 million in 2012. Revenue increased from Rs20.60 billion in 2012 million to Rs24.78 billion in 2013. The company achieved its highest ever production of vinyl chloride and caustic soda during the year.

Vopak

During the year, the company modified its ACN tanks which were unused since 2010 and brought these under use for storage of EDC for Engro Polymer. Actual throughput for the year was 1,135 KT compared to 1,101 KT in 2012.

The company’s revenue was Rs2.05 billion in 2013 as compared to Rs2.37 billion in 2012. The profit after tax for 2013 was Rs1.21 billion compared to Rs1.48 billion in 2012.

LNG

Elengy Terminal Pakistan Limited (EPTL), a subsidiary of Engro Corporation Limited, won the government’s tender for Fast Track LNG in November 2013 and is poised to sign the contract this month.

Bottling up: Commission of experts calls for suspension of capacity tax

The government levied a fixed annual tax of Rs4.7 million per spout in the last budget. PHOTO: FILE

KARACHI: 

In a major blow to the Federal Board of Revenue (FBR), experts – tasked by a court to look into the capacity tax issue on the beverage industry – have found the taxation regime to be flawed and called for its suspension.

Making every producer of an aerated water drink pay the same tax based on the capacity of a machine when some of them are more productive does not provide a level playing field, ruled the commission, which was formed by the Lahore High Court around four months back.

In its seven-point finding, which was submitted on February 13 to the court, the commission said that the spout or valve, from which bottles are filled, cannot be an absolute tool to gauge a machine’s capacity.

“The data is reliable to measure the production of a particular machine,” said the commission, which included Dr Ijaz Chaudhry, Dr Shahid Ikramullah and Dr Zaheeruddin Sheikh.

The capacity tax on beverage industry, which has forced many small companies to either cut production or shut down plants, is emerging as a serious challenge for the government.

In its last budget, the government levied a fixed annual tax of Rs4.7 million per spout. The FBR had negotiated the taxation regime with two multinational companies upon the latter’s assurance that revenue would increase by 25%.

The three-member commission visited six beverage makers including RC Cola, Gourmet Foods, Pepsi Gujranwala, Shandy Cola, Pepsi Multan and Murree Brewery to determine the tax’s fairness.

It found that the production capacity of spouts differ depending on make and model, year of manufacture, size of bottle being produced, maintenance condition and down time of the machine.

“Market share of the organisation must be looked into before taxation so that a level playing field and healthy competition prevails,” the findings said.

Brand plays a major role in determining how much of the machine’s capacity would be used, it said, adding that local and multinational brands should be split in two categories for the tax regime to work.

“This will help the local sector compete with the multinational companies and once they reach a certain capacity then the same tax might be introduced for them.”

Finally, the commission said that capacity tax should be suspended for some time till the survey of all petitioners is complete.

During the visit to the plants, the experts observed that one company had a machine, which filled 75 bottles of 250 milliliters capacity every minute while others could fill 530 to 650.

Industry people say that the capacity tax was introduced without taking all stakeholders on board. The FBR has already expressed its annoyance over multinationals’ failing to meet their commitment.

Till January 2014, the industry was supposed pay Rs4.2 billion as net tax whereas FBR has only collected 50% of the amount, industry people say.

The capacity tax issue has divided the industry with smaller bottlers voicing concerns about undue financial burden on their small-scale operation. According to a rough estimate, around 95% of beverage market is under control of two multinational companies.

Under the capacity tax, all the Pakistani beverage makers have been seriously affected with their sales at less than installed capacity.

First introduced in 1990, it is widely believed that this method of tax collection was the result of aggressive lobbying by multinationals. It was rolled back in 1994 but, by then, 10 beverages and 13 juice plants had been closed

Bid-losing: Austrian firm still trying to win Tarbela dam

"The chairman of Wapda cannot sign any bilateral agreement without the approval of the government of Pakistan," Wapda spokesperson. PHOTO: FILE

LAHORE: 

An Austrian company is trying to secure a contract for Tarbela’s fifth extension hydropower project, despite having lost its tender in the past.

Andritz Hydro could not get the contract through competitive bidding as it earlier lost the tender by a big margin in Tarbela’s fourth extension hydropower project. Its bid amounted to more than $40 million higher than what was given by its German competitor Voith Hydro.

Andritz Hydro, in collusion with Wapda and its chairman Syed Raghib Shah, is working to give the green signal for the project. The project consultant has also recommended the Austrian company for the contract in its concept paper.

Shah has signed a consent letter with OEKB, (Austrian Control Bank) for the funding of the project, which is conditional to the involvement of the World Bank.

Sources familiar with the matter, however, said it is unlikely that the World Bank will involve itself in this project as it is not transparent and is limited only to an Austrian company. They added that bilateral funding is usually signed by the economic affairs division and the finance ministry and not by the head of a government department.

The economic affairs division has raised several objections in awarding this contract to Andritz Hydro. The contents of an office memorandum titled “Austrian Financing for Tarbela 5” reads that the undersigned is directed to refer to the water and power ministry’s letter on the captioned subject and to say that in accordance with the planning commission’s guidelines, foreign donors cannot be approached for financing a project without the approval of the project of PC-I.

It also says that in cases of emergency, the clearance of the concept should be sought from the appropriate forum, Central Development Working Party (CDWP).

“I have been directed to request that this division may please be informed as soon as the concept clearance is accorded by the CDWP,” the letter stated. “I have been further directed to request that the comments may please be provided on the urgency for initiating the negotiation with Austria on the basis of the concept clearance from the competent forum.”

After receiving the letter, the water and power ministry also sought the views of the Wapda chairman regarding the decision to exclude others. Instead of following directions, Shah issued a consent letter in favour of the Austrian firm.

The extracts of the letter signed by Shah and board member of OEKB Rudolf Scholten, stated that the government of Pakistan through Wapda has suggested certain projects to the Austrian government for financing and turnkey execution under prevailing tendering rules.

One of these projects is the Tarbela fifth extension project where OeKB , on behalf of the Austrian government, is willing to consider financing in conjunction with the World Bank.

Austria has offered attractive terms under its export and investment promotion scheme which is backed by the Austrian government.

While talking to The Express Tribune, sources familiar with the matter raised questions about the process of awarding the contract, asking which rule allows the Wapda chairman to contact a private company.

When The Express Tribune contacted Wapda’s public relations director Rana Abid, he said that Wapda performs its functions strictly in accordance with the policies and provisions of the Wapda Act and the rules made thereunder.

According to him, the Tarbela fifth extension hydropower project is of immense importance in view of the acute electricity shortages in the country. Therefore, all activities are being undertaken simultaneously for its execution in the shortest possible time.

The CDWP has accorded the project approval concept in its meeting in mid-January this year, while the study is being carried out as per the relevant rules, Wapda spokesman said.