Electronic News Bulletin - The Federation Of Pakistan Chambers Of

Electronic News Bulletin
(Summary of news appearing in National Dailies April 8, 2015) relating to Industry, Business, Trade & Commerce) From
(English & Urdu News Papers)
The Federation of Pakistan Chambers of Commerce & Industry 1 FPCCI/IR/ (11)
April 8, 2015
FPCCI’s Electronic News Bulletin
Index Head line
Index
SR #
News Paper
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Furniture industry assured of TDAP support
Pakistan assures IMF of gas, power tariffs hike
Textile exports fall
IMF sees low global economic growth
Iran becomes member of China-led bank
Cotton prices steady amid strong demand
Gold retreats
Palm oil falls
Policy deficiencies hurting Pakistan’s exports: experts
Govt to keep fiscal deficit at less than 4pc in 2015/16
SECP approves draft LLP bill
(p8.c3)
(p8.c2)
(p10.c4) (p11.c4)
(p10.c3)
(p11.c3)
(p11.c3)
(p11.c4)
(p17.c3)
(p15.c3)
(p15.c4)
The Nation
The Nation
Dawn
Dawn
Dawn
Dawn
Dawn
Dawn
The News
The News
The News
12
Ahmed Owais VC FPCCI Standing Committee
(p13.c2)
The News
2 April 8, 2015
Reports of “The Nation”
1. Furniture industry assured of TDAP support
(p8.c3)
KARACHI : A five-member delegation of the “All Pakistan Furniture Exporters Association” (APFEA) led
by Humayun Laiq, Chairman, met with SM Muneer, Chief Executive of TDAP. Prominent traders from the
furniture industry held detailed discussions with the Chief Executive, TDAP, regarding various problems
being faced in the export of furniture products from Pakistan. Furniture exporters suggested measures
that the government should take steps to help furniture industry. The issues highlighted related to
Customs and port clearances, pricing and shortage of raw materials, meeting industry’s training and
development needs, increased support for international marketing of furniture products, etc.
The TDAP Chief, assured APFEA members full cooperation for resolution of furniture industry issues
relating to TDAP as well as other concerned agencies.
http://nation.com.pk/business/08-Apr-2015/newsbrief
2. Pakistan assures IMF of gas, power tariffs hike
(p8.c2)
ISLAMABAD : Pakistan has given written assurance to the International Monetary Fund (IMF) to enhance
the prices of electricity and gas, reducing power subsidies, broadening of tax base and privatisation of
Public Sector Entities.“The government has started applying a new FY2014/15 electricity tariff, with a
more comprehensive view of production and distribution costs. These steps could reduce on-budget
subsidies by another 0.1 percent of GDP and thus help address the revenue shortfall. In addition, it
should begin to reverse the accumulation of circular debt by closing the gap between electricity tariffs and
the cost-recovery level,” stated Memorandum of Economic and Financial Policies dually signed by
Finance Minister and Governor State Bank of Pakistan along with Letter of Intent written to IMF.
The payables in the power sector, which climbed to Rs 298 billion at end-December 2014, of which
around Rs 80 billion constitute current payables.Pakistan also assured that notification of new gas prices
was postponed for a second time and is now planned for July 2015. However, the Fund expressed
concerns about this delay and urged the authorities to reconsider unification of determination and
notification with the regulator - Oil and Gas Regulatory Authority (OGRA). The government remains
committed to full pass-through of the cost of imported LNG to the end-user purchase price (including
Compressed Natural Gas) as it comes online.
http://nation.com.pk/business/08-Apr-2015/pakistan-assures-imf-of-gas-power-tariffs-hike
Reports of “Dawn”
3. Textile exports fall
(p10.c4)
LAHORE: All-Pakistan Textile Mills Association Chairman S.M. Tanveer has said that the textile industry
of Pakistan has lost its viability against regional competitors and it is no more competitive in the
international market.“Our textile and clothing exports are declining and are stagnant since February last.
Thus textile mills are becoming sick units and are closing down one after the other,” the Aptma chief said.
He warned that the situation may lead to serious repercussions on the farm sector, the entire textile value
chain and eventually the workforce. He urged the government to restore the competitiveness of the
industry by ensuring realistic rupee value, uninterrupted supply of gas and electricity at regionally
affordable rate, immediate notification of TUFS scheme, liquidation of all pending refunds, removal of all
innovative taxes and immediate announcement of zero rate regime for five export-oriented sectors.
http://www.dawn.com/news/1174562/textile-exports-fall
4. IMF sees low global economic growth
(p11.c4)
WASHINGTON: The world’s growth potential took a big hit after the 2007-2009 financial crisis and is likely
to lag for years, implying that interest rates should likely stay low for quite a while, the International
Monetary Fund (IMF) said in a study on Tuesday.Potential growth, which gauges how fast economies can
grow over time without hitting inflationary speed bumps, already was slowing in richer economies before
the financial crisis due to aging populations and a drop in technological innovation.But declines in private
investment and employment growth cut annual potential growth in these countries to 1.3 per cent
between 2008 and 2014, half a percentage point lower than before the crisis, according to the IMF study.
The study, part of the Fund’s twice-yearly World Economic Outlook, could frame the discussions over how
to boost growth when the world’s economic policymakers gather in Washington next week for the IMF
and World Bank’s spring meetings.
3 http://www.dawn.com/news/1174559/imf-sees-low-global-economic-growth
5. Iran becomes member of China-led bank
(p10.c3)
SHANGHAI: Iran has been approved as a founding member of the Beijing-backed Asian Infrastructure
Bank (AIIB), China’s finance ministry said on Tuesday, just days after Tehran sealed a historic framework
agreement on its nuclear programme.Tehran’s application was backed by other founding members on
Friday, China’s Ministry of Finance said in a statement on its website. The United Arab Emirates’ bid was
also approved.More than 50 countries, plus Taiwan, have now applied to join the bank in a diplomatic
coup for Beijing after Washington initially opposed its allies becoming members.The United States and its
Asian ally Japan have not sought to join.But US Treasury Secretary Jacob Lew said last week that
Washington was “ready to welcome” the bank, though he added it should complement existing
multilateral institutions such as the World Bank and International Monetary Fund (IMF).Iran’s approval —
its application had not been previously announced — comes immediately after the nuclear deal that
China helped to broker.Under the outline nuclear deal, the United States and the European Union are to
lift all nuclear-related sanctions on Iran once the UN atomic agency has verified that Tehran has stuck to
its terms.http://www.dawn.com/news/1174567/iran-becomes-member-of-china-led-bank
6. Cotton prices steady amid strong demand
(p11.c3)
KARACHI: Strong demand for quality lint kept prices firm on the cotton market on Tuesday amid fast
depleting stocks.Floor brokers said that delay in the arrival of next crop and diminishing stocks with
ginners are worrying spinners who still need substantial quantity of cotton.Though sowing for the new
crop has started in lower Sindh and Punjab, it is already late by around four weeks because of longerthan-expected spell of rains.The Karachi Cotton Association (KCA) kept its spot rates unchanged.The
following deals were finalised on ready counter: 904 bales from Sakrand done at Rs4700, 400 bales Kazi
Ahmed at Rs4700, 200 bales Mian Channu at Rs5000, 200 bales Multan at Rs5000, 400 bales
Chichawatni at Rs5300, 600 bales Faqirwali at Rs5250 to Rs5275, 200 bales Sardar Garh at Rs5225,
400 bales Burewala a tRs5200 and 400 bales Haroonabad at Rs5050.
http://www.dawn.com/news/1174561/cotton-prices-steady-amid-strong-demand
7. Gold retreats
(p11.c3)
LONDON: Gold edged lower on Tuesday as the dollar recovered and global shares rose, but uncertainty
about the timing of a US interest rate increase kept bullion not far from a seven-week high above $1,200
an ounce.Bullion hit its highest since Feb 17 at $1,224.10 on Monday, supported by a weakening dollar.
Spot gold was down 0.2 per cent at $1,211.50 an ounce by 1354 GMT, while US gold for June delivery
slipped 0.6pc to $1,211.30 an ounce.The premium for physical gold on the Shanghai Gold Exchange was
less than a dollar an ounce over the global spot benchmark, down from around $2-$3 last week as
Chinese buyers returned from a long holiday weekend.
http://www.dawn.com/news/1174556/gold-retreats
8. Palm oil falls
(p11.c3)
KUALA LUMPUR: Malaysian palm oil futures fell on Tuesday, ending a three-day winning streak due to
concerns over rising palm supplies and on anticipation of stiffer competition from top producer Indonesia.
Traders said Indonesia’s plans to impose a levy on its exports of crude and processed palm oil could
channel demand to Malaysia, which may in turn force Indonesian sellers to reduce their prices to remain
attractive.Indonesia accounts for about 52 per cent of world output. “Indonesia will soon lower their prices
to compete and the market will need to adjust to that,” said a trader with a local commodities brokerage in
Malaysia.The benchmark June contract on the Bursa Malaysia Derivatives exchange had inched down
1.1pc to 2,208 ringgit ($608) a tonne by Tuesday’s close.
http://www.dawn.com/news/1174557/palm-oil-falls
Reports of “The News”
9. Policy deficiencies hurting Pakistan’s exports: experts
(p17.c3)
LAHORE: Exporters in Pakistan are suffering not only from policy deficiencies at the domestic front, but
also due to failure of the trade diplomacy that has provided advantage to Indian exporters even in
countries where Pakistan enjoys most cordial relations, experts said on Tuesday.All Pakistan Textile Mills
Association (Aptma) Group leader Gohar Ejaz said, “We proudly declare that Pakistan is the only country
4 in the region with which China has signed a free trade agreement.”He said bulk of the Pakistani exports to
China is cotton yarn and cotton fabric. As far as yarn is concerned the import duty of both Pakistani and
Indian yarn is 3.5 percent.“Where is the advantage that Pakistan got by signing free trade agreement with
China?” He wondered.Ejaz said in fabric Pakistan enjoys huge advantage over India, as the import duty
on Pakistani fabric in China is zero, while it is 8.5 percent for Indian fabric.Diplomats obtain better terms
of trade from most friendly countries, he said, adding, Turkey is one of Pakistan’s closest allies still the
duty it charges on Pakistani yarn and fabric is the same as it charges from India.
http://www.thenews.com.pk/Todays-News-3-311347-Policy-deficiencies-hurting-Pakistans-exportsexperts
10. Govt to keep fiscal deficit at less than 4pc in 2015/16
(p15.c3)
KARACHI: Hit by tax evasion and avoidance, the government of Pakistan doesn’t seem to lose foothold
on this year’s fiscal target it committed with the International Monetary Fund (IMF) for the three-year loan
program. The government is on track to keep the revenue-expenditure gap at less than four percent for
the 2015/16 fiscal year, said the finance ministry in a letter of intent released by the IMF on Tuesday.The
finance wizards said the government plans to bring down the deficit to 3.5 percent by the end of threeyear extended fund facility (EFF) program. For the current fiscal year, it has vowed to keep the budget
deficit target at 4.8 percent. “The bulk of this adjustment will come from increasing revenues by
broadening the tax base and closing loopholes, while creating fiscal space to finance increase in public
infrastructure investment, security and defence, education, healthcare, and targeted social assistance to
improve living standards across the country and to protect the most vulnerable segments of society,” said
the IMF document. Sometime, the low tax revenue is thanks to arbitrary exemption and incentives given
to people of choice.
http://www.thenews.com.pk/Todays-News-3-311338-Govt-to-keep-fiscal-deficit-at-less-than-4pc-in201516
11. SECP approves draft LLP bill
(p15.c4)
ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Tuesday approved the draft
Limited Liability Partnership Bill, 2015 (LLP) after extensive consultation with all the relevant
stakeholders, and sent it to the Finance Division for further process.The proposed law provides for a new
form of business structure, which would fill the gap between business firms such as sole proprietorships,
and partnerships, the liability of whose partners is unlimited and the companies governed under the
Companies Ordinance, 1984 whose members enjoy the benefit and privileges of limited liability.The LLP
regime will also provide a platform to small and medium enterprises, which will in turn increase their
global competitiveness. It will enable professional firms of chartered accountants and legal practitioners
etc, to convert their firms to the newly introduced form of business.The introduction of the proposed LLP
provides for an alternative form of business organisation, with the flexibility of a general partnership and
ability to avail all the advantages and privileges of a limited liability company.
http://www.thenews.com.pk/Todays-News-3-311340-SECP-approves-draft-LLP-bill
Reports of “Pak Observer”
12. Ahmed Owais VC FPCCI Standing Committee
(p13.c2)
5 6 7 8 9 10 11