News Updates

Friday, July news 18, 2014 updates

Office # 05, Ground Floor, Arshad Mansion, Near Chowk A.G Office, Nabha Road Lahore. Ph. 042-37350473 Cell # 0300-8848226 NEWS OF Mail to: [email protected], [email protected] THE DAY PLP NEWS ALERTS EMAIL No. 166-2014 NEWS HEADLINES Top Stories ...... 6 Operation in North Waziristan: Prime Minister, army chief reaffirm joint ownership ...... 6 Afghanistan asked to take action against sanctuaries ...... 7 ECC allows additional import of potato from India ...... 8 India says committed to building friendly ties ...... 9 IMF proposal on retirement age limit rejected ...... 11 Rs 177.36 billion projects approved by CDWP ...... 12 Malaysian airliner downed in Ukraine war zone, 295 dead ...... 13 US, EU stiffen sanctions against Russia over Ukraine ...... 14 PIA, Fesco: PC may select financial advisers on July 22 ...... 14 Privatisation process: HEC employees smell a rat? ...... 16 Foreign institutional investors: tax collection through NCCPL mechanism ...... 17 Karkey rental power case: NAB presents final reference ...... 18 Lawyers file petitions against Imran ...... 19 Textile exports increase by 3.9 percent ...... 20 Kohlu-Dera Bugti area of Balochistan: E&P companies restart activities ...... 21 Prices of wheat flour, other items: hearing adjourned to August 20 ...... 22 AGP files petition against Dar, others ...... 23 Eid holidays ...... 23 Israelis airstikes resume after humanitarian lull ...... 24 Microsoft to cut 18,000 jobs in major reorganisation ...... 25 Index climbs to historic high ...... 25 BRIndex30 surges by 345.77 points ...... 26 Business and Economy: Pakistan ...... 28 UK based investors call on Dar ...... 28 Forex reserves fall by $124 million ...... 28 French ambassador meets Dar ...... 29 Dar chairs moot on facilitating Pakistan-Iran trade ...... 30 Rs 177.36 billion projects approved by CDWP ...... 30 Budget 2014-15: Punjab allocates Rs 7,150 million for regional planning sector ...... 32 PIA, Fesco: PC may select financial advisers on July 22 ...... 33 Privatisation process: HEC employees smell a rat? ...... 34 IMF proposal on retirement age limit rejected ...... 36

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PLP NEWS ALERTS EMAIL No. 166-2014 Employees' registration with Pessi: Punjab to launch amnesty scheme for industrial, trade sector...... 37 Traders demand withdrawal of controversial SRO 608(1)...... 38 Business community satisfied with exchange rate stability ...... 38 Matching qualification issue: TCP reverts 39 'conditionally' regularised employees ...... 39 KPCCI executive committee announces election schedule ...... 41 Activity at Karachi and Qasim ports ...... 41 AGP files petition against Dar, others ...... 43 PAC meeting on August 11 ...... 43 Cotton and Textiles: Pakistan ...... 44 Prices continue upward march ...... 44 Scientists discuss cotton seed production plan for 2015...... 45 Pre-Eid buying increases cotton prices ...... 45 Textile exports increase by 3.9 percent ...... 47 NPLs of sick units: Textile Ministry to set up review committee ...... 48 Textile industry: Dar urged to clear ST refunds by September ...... 49 Agriculture and Allied: Pakistan ...... 50 Indus, Chenab, Kabul & Jhelum rivers in low flood ...... 50 Prices of wheat flour, other items: hearing adjourned to August 20 ...... 51 Daily trading report of PMEX ...... 51 Iron ore exploration project: Punjab government, German companies sign accord ...... 52 Baba & Bhit islands sans basic amenities: PPP government urged to honour its commitments ...... 52 Taxation: Pakistan ...... 54 Foreign institutional investors: tax collection through NCCPL mechanism ...... 54 FOIRA, 2013: LTUs, RTOs told to ensure implementation ...... 55 KTBA demands FBR to adopt previous income tax return form with changes ...... 56 If either of the two is filer: joint accountholders to be treated as filer: FBR ...... 57 Mutual fund industry: rate of tax deduction for dividends to be 25 percent ...... 58 Taxation: World ...... 60 Obama wants to crack down on US firms' tax inversions ...... 60 Australia abolishes divisive carbon tax ...... 60 Fuel and Energy: Pakistan ...... 62 Efforts on to overcome energy crisis: 'people won't be hoodwinked through hollow slogans' ...... 62 Kohlu-Dera Bugti area of Balochistan: E&P companies restart activities ...... 62 Shoaib Warsi appointed SSGC MD ...... 63 Karkey rental power case: NAB presents final reference ...... 64

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PLP NEWS ALERTS EMAIL No. 166-2014 Power theft: Pesco facing loss of Rs three billion per month ...... 64 Fuel and Energy: World ...... 66 US crude gains $2 on demand expectations ...... 66 Banking & Finance ...... 67 Foreign reserves stand at US$14,513.6mn ...... 67 BR Research: All ...... 68 Whats next for the stock market? ...... 68 Coal power project - Luckys new charm? ...... 69 PIB yields signal status quo ...... 70 Ready, steady, cook! ...... 70 Brief Recordings...... 72 'Starting to listen to businesses is also a reform' ...... 72 Crime Records ...... 76 'Hideout' near Prime Minister's Raiwind house raided, 2 militants killed ...... 76 Eight killed in Hangu twin blasts ...... 77 Attempt foiled: Matrimonial spat ends in kidnapping attempt of child ...... 77 Islamabad: Afghans among 80 suspects arrested...... 78 Karachi: 3 suspected criminals arrested ...... 79 2 held, NCP van seized in Tank ...... 79 Peshawar: Alleged killer of cop arrested ...... 80 Islamabad: 2 arrested on charges of extortion ...... 80 Butcher arrested in Nowshera ...... 80 Rape bid foiled in Pakpattan ...... 81 Miscellaneous News ...... 82 Challenging potato hoarders: ECC approves duty-free import to control prices ...... 82 Regulatory issues persist: SSGC MD quits as govt continues struggle...... 83 Foreign exchange: Reserves slide by $116 million in a week ...... 85 Shale gas: Government to initiate pilot projects to fill energy gap ...... 86 Thawing relations: Pakistan ready to negotiate negative trade list with India ...... 87 Government’s wish-list seems far-fetched: Bilwani ...... 88 Venting: APTMA demands payment of sales tax refunds...... 89 Losing competitiveness: ‘Country lacking export edge’ ...... 90 Crackdown: Illegal exchange raided in Lahore ...... 90 OPEN MARKET FOREX RATES ...... 92 INTER BANK RATES ...... 93

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PLP NEWS ALERTS EMAIL No. 166-2014 Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) ...... 94

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PLP NEWS ALERTS EMAIL No. 166-2014 Top Stories Operation in North Waziristan: Prime Minister, army chief reaffirm joint ownership

July 18, 2014

WASIM IQBAL

Prime Minister Nawaz Sharif and his cabinet members visited the General Headquarters here on Thursday. Defence Minister Khwaja Muhammad Asif, Interior Minister Chaudhry Nisar Ali Khan, Finance Minister Ishaq Dar and Advisor on National Security Sartaj Aziz and Special Assistant on Foreign Affairs Tariq Fatmi accompanied the Prime Minister.

Sources said Prime Minister Sharif assured the military leadership that all resources will be available for the military Operation Zarb-e-Azb in North Waziristan; he added that the entire nation was proud of those rendering sacrifices for the country's future. The security at the grand Independence Day (August 14) also came under discussion, sources maintained.

According to ISPR, Chief of Army Staff General Raheel Sharif welcomed the prime minister at the helipad. A guard of honour was presented to the Prime Minister on arrival. Military officials briefed him on security and professional affairs of armed forces. The Prime Minister laid down a floral wreath on Yadgar-e-Shuhada and prayed for the martyrs. He lauded the sacrifices rendered by military personnel while defending the motherland.

Sources said that Prime Minister was briefed on the ongoing operation and informed that over 450 terrorists had been killed. The prime minister was also informed that 26 soldiers including two captains embraced martyrdom. The operation is successful in clearing Miranshah and North Waziristan has been sealed from all sides, he was further briefed. The briefing also provided insight into the army's advance towards Mir Ali and resistance by militants. In the next phase, the army will take action in Shawal and Datta Khel.

Sources said that the Prime Minister also shared the decision of the federal government for holding the grand Independence Day event in front of the Parliament building. Security to the national event, to be attended by some 6,000 guests, will be arranged by 111 Brigade of the Pakistan Army in collaboration with the capital police in Islamabad and Rawalpindi. The Independence Day event will include a parade, an address by Prime Minister Nawaz Sharif, hoisting of national flag, fly-pass of F-16s and fireworks in front of the Parliament House and the Cabinet Block building during the night between August 13 and August 14. Defence analysts said the visit of Prime Minister to GHQ had great significance as it gives a message that federal government fully owns the military operation against militants.

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PLP NEWS ALERTS EMAIL No. 166-2014 Afghanistan asked to take action against sanctuaries

July 18, 2014

ALI HUSSAIN

Pakistan on Thursday asked Afghanistan not to allow its territory to be used against the neighbouring country and take action against the terrorists' sanctuaries on its soil being used for attacks on its (Pakistan) security forces. Foreign Office spokesperson Tasnim Aslam told media during her weekly briefing that Pakistan had asked Afghanistan repeatedly not to allow its territory to be used against Pakistan by the terrorists.

"As Pakistan is determined not to allow its territory to be used against them, we expect similar commitment from Afghanistan," she said. When asked whether Afghan side had taken any action on Pakistan's request, Aslam said the Foreign Office had no information, so far, if any ground action had been taken to eliminate these terrorists' sanctuaries on Afghan soil. However, she said, Pakistan military authorities present on the Pakistani side of the international border would be in a better position to confirm.

The spokesperson also condemned the recent terrorist attacks in Afghanistan, including the one in Paktika Province, in which a large number of innocent civilians lost their lives. "We extend our heartfelt condolences to the families of the victims and pray for the speedy recovery of the injured. No cause justifies such wanton acts of violence, especially in this holy month of Ramazan. We reiterate our condemnation of terrorism in all forms and manifestations," she added.

About the Afghan presidential elections, she said that Pakistan welcomed the amicable solution regarding the complaints of fraud in the second round of Afghan presidential elections. "We appreciate the efforts of everyone who contributed to this peaceful and negotiated outcome. We believe this is a success for democracy, stability and national unity in Afghanistan," she said, adding that Pakistan wishes the Afghan authorities and the international partners well.

About the recent statement by Indian Minister for Defence, she said that any articulation of policy that India wants to settle all issues, including the outstanding issue of Jammu and Kashmir through dialogue resonates with Pakistan as it has been its policy. She said that Pakistan's policy, all along, has been that all outstanding disputes, particularly the dispute of Jammu and Kashmir should be resolved through dialogue. But she made it clear that "you cannot have dialogue and at the same time impose pre-conditions."

She said that the trial of the accused in Mumbai attack case was going on. Unlike this, however, the trial of those accused in Samjhota terrorist attack in which Pakistanis were the victims, is not progressing, she pointed out.

"I am not saying that we want to hold up progress on one because of the other. But we do expect that Pakistanis who have been victims of terrorism would also get justice," Aslam added. About Israeli attacks on Gaza, she said that Pakistan's position has been stated very clearly that these

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PLP NEWS ALERTS EMAIL No. 166-2014 killings of innocent Palestinians particularly women and children are deplorable and condemnable and Pakistan condemn them. She said that Pakistan's Missions have been working within the UN system in New York, Geneva and the OIC Jeddah to seek immediate cease-fire. When her comments were sought on formation of a new World Bank under the leadership of India, the spokesperson said that BRICS is an economic grouping and they are entitled to take all steps that they deem feasible for their economic development.

About Pakistan's quest for full membership of SCO, she said that Pakistan as observer has been participating very actively at highest level in the SCO meetings. "We believe it's a very useful and relevant forum to discuss the issues this region is facing. Pakistan also looks forward to becoming its full member," she added. Commenting on conviction of a Pakistani journalist Faizullah Khan in Afghanistan, the spokesperson said the matter has actively been pursued with the Afghan authorities to secure the release of the journalist. She said that Pakistan's consular general in Jalalabad and Kabul embassy has been pursuing the case on the legal and political fronts.

She said that the consular general held meetings with the Afghan officials and secured immediate consular access to the journalist, facilitated his contact with the family and arranged a lawyer. She said that Pakistan's Ambassador in Kabul also held meetings with the Afghan foreign and interior ministers on the matter. In all these meetings, the afghan authorities were asked to release the Pakistani journalist on humanitarian grounds. Due to hectic efforts, the most serious charges have been dropped against the journalist and the Afghan authorities have also promised to help Pakistan in this case, she added.

July 18, 2014

ZAHEER ABBASI

The Economic Co-ordination Committee (ECC) of the Cabinet has allowed duty-free import of an additional 100,000 tons of potato from India and extended the import date for another four months to bring down prices. An official said the import of 100,000 tons potato would be in addition to an already sanctioned 200,000 tons duty-free import from India, which was allowed in April for May-July 2014 with expectations that it would help arrest the rise in the price of this commodity in Ramazan.

They added that the ECC was informed by the Ministry of Food and Security in April that the price of potato could cross Rs 100 per kg in Ramazan if the import was not allowed. A meeting of the ECC chaired by Finance Minister Ishaq Dar on Thursday also decided that potato import would now continue till its next harvest expected by mid-November 2014. "We have given the Ramazan Package of Rs 2 billion to serve consumers and due to this subsidy package price of essential commodities are under control," he added.

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PLP NEWS ALERTS EMAIL No. 166-2014 The ECC also considered a summary presented by Ministry of Industries and Production for the provision of natural gas as feed stock in the direct reduced iron (DRI) process to Tuwairqi Steel Mills Limited on concessional rates. Al-Tuwairqi Group of Company had signed an MoU with the government of Pakistan on 28 May, 2004 for provision of 40 mmcfd gas for use as feed stock and 30 mmcfd for use as fuel on the same rates as applicable to other such industries. The ECC formed a committee comprising members from Finance Division, Board of Investment, Ministry of Petroleum, Ministry of Law and Justice and Ministry of Industries to study all aspects of the abovementioned MoU and present a report to the ECC. The Finance Minister said agreements should be made on well thought out plans and such promises should not be made which are not implementable. The Finance Minister also directed the concerned ministries to prepare an integrated energy plan for the next four years which could include parameters for investment, power generation, distribution and transmission.

The ECC also considered a summary of the Ministry of Water and Power for approval of Standardised Security Agreements (Project Agreements) for biomass based power generation projects in IPP mode. The ECC was informed that the draft energy purchase agreement and draft implementation agreement for biomass base projects is on the cost plus basis.

The ECC after detailed discussions decided that there should be no place for cost plus basis purchase agreements. Instead, up-front tariff mode approved by Nepra should also be applied on biomass and bagasse projects. The ECC further directed that no specific contract between two parties should be brought up before the ECC for consideration as only standardised draft agreements will be considered. The summary was deferred till a detailed presentation by Nepra in this regard.

July 18, 2014

India Thursday said it remains committed to building peaceful and friendly ties with Pakistan while calling on Islamabad to stick to its commitment to preventing its territory from being used for terrorism against India. In a written reply to Rajya Sabha on the government's policies and programmes for enhancing bilateral relationship with SAARC countries, Minister of State for External Affairs General V K Singh said India will continue to engage pro-actively with all members of the grouping.

On Pakistan, he said the government remains committed to building peaceful, friendly and co- operative ties with Pakistan in an environment free from terror and violence. "It is India's desire to intensify and accelerate the process of trade normalisation and implement the steps agreed in September 2012 at the Commerce Secretary level," he said.

The Minister said the government hopes that bilateral relations with Pakistan will progress in economic, cultural and political fields in the same manner that India's relations with her other SAARC neighbours have progressed in the recent years, built on partnerships for development and mutual prosperity. "It is India's expectation that Pakistan abides by its commitment to prevent its territory and territory under its control from being used for terrorism against India,"

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PLP NEWS ALERTS EMAIL No. 166-2014 Singh said. Meanwhile, underlining that India has a close strategic partnership with Afghanistan covering a broad spectrum of areas including an active role in providing development and reconstruction assistance to Afghanistan, he said New Delhi is working with Kabul for its regional integration with the SAARC economy.

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PLP NEWS ALERTS EMAIL No. 166-2014 IMF proposal on retirement age limit rejected

July 18, 2014

NAVEED BUTT

The federal government has rejected the proposal of the International Monetary Fund (IMF) to increase the age limit for retirement from 60 to 62 years to curtail the growing pension bill. Secretary Establishment Division Nadeem Hassan Asif told the Senate Standing Committee on Cabinet Secretariat that the Prime Minister has no intention to increase retirement age of government employees from 60 to 62 years. He said that the Prime Minster has given approval already one year ago to maintain the retirement age at 60 years.

Pakistan''s federal expenditure on salaries and pensions is estimated to be about Rs 450 billion, including pension expenses of about Rs 171 billion for the financial year 2013-14. As part of public expenditure reforms programme, the IMF has suggested increase in the retirement age as a way out of rising pension bill due to improved life expectancy rate. The committee met with Senator Kulsoom Parveen in the chair at Parliament House on Thursday. Senators Dr Saeeda Iqbal, Kamil Ali Agha, Mrs Rubina Khalid, Yousaf Badini, State Minister for Parliamentary Affairs Sheikh Aftab Ahmed, Secretary Establishment, Additional Secretary Interior Muhammad Imtiaz, Acting Inspector General Police Islamabad Khalid Khattak and others participated in the meeting.

The committee discussed the proposal under consideration for enhancing the retirement age of government servants from 60 to 62 years as suggested by the IMF and on the analogy of other developed countries of the world. The committee also discussed the issues of non-regularisation of 397 ex-service men (serving in Islamabad Police) since 2009, regularisation of contractual employees of Federal General Hospital Islamabad and lifting ban on recruitment in the meeting.

While discussing the IMF suggestion, the Secretary Establishment said that the retirement age of a judge of the Supreme Court is 65 years while there must be some exemption in the age of scientists and special experts. The secretary said while briefing the committee about regularisation and recruitment that the mistake was committed in the past as appointments were made while the vacancies did not exist. He said in the previous PPP government, a special committee of the Cabinet constituted under Syed Khursheed Ahmed Shah had regularised 60,000 contractual employees. He said that this issue was challenged in Islamabad High Court and the court divided it in three categories, which includes the institution can regularise the employees and fulfil the vacancies according the criteria of educational institution and competency of the candidate. Committee Chairperson Kulsoom Parveen said there is ban on the recruitment since 2013 while twice a summary has been sent to the Prime Minister to lift ban on recruitment. She said that as many as 3,000 vacancies of Balochistan and Fata as per federal quota are lying vacant in Islamabad.

She said the Cabinet Division should write letters to all the ministries to get details of vacant vacancies and subsequently submit it to the committee. The Secretary Establishment said that a summary has been presented to the Prime Minister to lift ban on recruitment on which the Prime

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PLP NEWS ALERTS EMAIL No. 166-2014 Minister said that vacancies should be filed in those departments where there is necessity for staff. The chairperson said that Fawad Hassan Fawad in the Prime Minister Secretariat is looking after the issue and he should be summoned in the next meeting for getting details.

July 18, 2014

The Central Development Working Party (CDWP) has approved/recommended as many as six development projects, costing Rs 177.36 billion, including a foreign exchange component of Rs 126.59 billion from all the four provinces. A meeting of the CDWP held with Federal Minister for Planning, Development and Reform Ahsan Iqbal in the chair at P, Block of Planning Commission Secretariat on Thursday, to discussed public sector development projects.

The meeting approved/recommended projects, which included Construction of Infrastructure for Power Park 6,600 Megawatt project at Gaddani (Balochistan), Greater Karachi Water Supply Scheme K-IV (Sindh), Kala Dhaka Area Development Project of Khyber Pakhtunkhawa (KP), Khyber Area Development Project (Khyber Pakhtunkhawa), Construction of 50-Bedded Hospital Including Hostels and other equipments at Pasni (Balochistan) and Red Chillies Processing Centre (Sindh).

The meeting recommended the Construction of Infrastructure for 6,600 Megawatt Pakistan Power Park Project at Gaddani, costing Rs 14.463 billion (15 percent funding by Government of Pakistan and 85 percent debt financing) aims at development of infrastructure facilities at Pakistan Power Park at Gaddani for establishing 10 x 660 Megawatt of imported coal fired power generation plants to The Executive Committee of the National Economic Council (Ecnec). The project will help in developing the infrastructure of Pakistan Power Park at Gaddani by installation of coal supply system, jetty head, cooling water facilities and several other installations.

The meeting approved in principle Kala Dhaka Area Development Project (Rs 1700.968 million) and Khyber Area Development Project (Rs 1235.53 million) of Narcotics Control Division aims at supporting rural transformation and promotion of legitimate agricultural activities and enhancement of mobility through construction of roads in select areas of Khyber Pakhtunkhawa.

The CDWP approved construction of 50-bed hospital in Pasni area of Balochistan, costing Rs 440.9 million that will provide hostels, residential accommodation, medical equipment, ambulances and other vehicles at the hospital which will help in providing modern health facilities to the people of Balochistan in principle. The CDWP also approved Red Chillies Processing Centre (RCPC) project of Industries and Production Division, costing Rs 244.7 million located in Umerkot District of Sindh envisaging adaptation of innovative drying techniques, which will reduce the moisture content of the fresh chillies and also dehydration of onions and garlic helping in adding value to finished products.

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PLP NEWS ALERTS EMAIL No. 166-2014 The meeting approved Balochistan Nutrition Programme for Mothers and Children of Government of Balochistan, costing Rs 1,492.62 million that will achieve the objective of ensuring availability of infant and young child feeding (IYCF) and community-based management of severe including acute malnutrition (CMAM) services. Ahsan Iqbal said that distribution network and transmission lines of electricity projects must be upgraded and augmented to cater the additional generation due to upcoming mega projects.

While discussing the Greater Karachi Water Supply Scheme (K-IV) (Phase-I), the Minister informed the house that financial share of the federal government in the project has been raised from one-third to half in compliance of Prime Minister of Pakistan's commitment during his recent visit to Karachi. The Minister said that some people blame federal government of interfering in provincial matters. He added that the federal government interferes but in a positive manner like in this project. He also sought assurance from provincial authorities regarding availability of water at the project site and directed the authorities to provide clean drinking water to the people of Karachi on urgent basis.

The minister expressed his reservation over the waste management system in Karachi. He said that the solid waste of Karachi is dumped into sea which is creating many environment and health hazards for people. The forum approved the project subject to the condition that cost escalation of the project in any case will be borne by the provincial government. Minister also stressed upon the authorities to use funds in an efficient manner and ensure transparency at all stages. The project was recommended for consideration of Ecnec.

July 18, 2014

A Malaysian airliner was brought down over eastern Ukraine on Thursday, killing all 295 people aboard and sharply raising the stakes in a conflict between Kiev and pro-Moscow rebels in which Russia and the West back opposing sides. Ukraine accused "terrorists" - militants fighting to unite eastern Ukraine with Russia - of shooting down the Malaysia Airlines Boeing 777 with a heavy, Soviet-era SA-11 ground-to-air missile as it flew from Amsterdam to Kuala Lumpur.

Leaders of the rebel Donetsk People's Republic denied any involvement, although around the same time their military commander said his forces had downed a much smaller Ukrainian transport plane. It would be their third such kill this week. The scale of the disaster affecting scores of foreigners could prove a turning point for international pressure to resolve a crisis that has claimed hundreds of lives in Ukraine since pro-Western protests toppled the Moscow-backed president in Kiev in February and Russia annexed Crimea a month later.

Reuters journalists saw burning and charred wreckage bearing the red and blue Malaysia insignia and dozens of bodies strewn in fields near the village of Hrabove, 40 km (25 miles) from the Russian border near the rebel-held regional capital of Donetsk. Despite the shooting down of several Ukrainian military aircraft in the area in recent months, including two this week, and

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PLP NEWS ALERTS EMAIL No. 166-2014 renewed accusations from Kiev that Russian forces were taking a direct part, international air lanes had remained open. US President Barack Obama said he was trying to establish whether Americans were aboard. A Ukrainian official said there were 23. France said at least four of its citizens were aboard.

July 18, 2014

The United States and Europe significantly strengthened sanctions on Moscow over Ukraine Wednesday, with Washington for the first time directly targeting Russia's banking, military and energy sectors. The new blows against Russia deepened the most serious stand-off between Moscow and the West since the end of the Cold War, as fighting between the Kiev government and pro-Russian separatists threatened to escalate into all-out civil war.

Nearly 50 civilians have been killed in artillery and air strikes across the Russian-speaking eastern Ukrainian regions of Donetsk and Lugansk since the weekend that both sides blame on each other. Kiev reported the deaths of 11 more servicemen overnight and warned that Russia had deployed thousands of troops along its entire border with Ukraine in preparation for a possible invasion. The United States said it had no option but to act after Russia refused to take steps to halt both its support for separatists and the cross-border flow of weapons and materiel. "We have moved to impose additional sanctions on Russia for its actions in violation of Ukraine's sovereignty and territorial integrity," said a senior US official on condition of anonymity.

July 18, 2014

The Privatisation Commission's (PC) Board is scheduled to meet on July 22 to select financial advisers (FAs) for restructuring and strategic privatisation of Pakistan International Airlines (PIA) as well as strategic sale of Faisalabad Electric Supply Company Ltd (Fesco). The evaluation committee of the PC, headed by Chairman and Minister of State Muhammad Zubair, was given presentations by potential parties for strategic divestment of 26 per cent shares with management control of PIA and strategic sale of Fesco.

The evaluation committee included two members of the Board, Secretary, Director General and representatives from Ministry of Finance and concerned ministries. A spokesman for the PC said

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PLP NEWS ALERTS EMAIL No. 166-2014 that various local and international consortia bid for FAs and sale of PIA and Fesco shares and five consortia were selected for presentation of each transaction. He said the evaluation committee finalised its recommendations on the selection of FAs which will likely be put up in the upcoming board meeting. The 12-member board will approve one consortium for each transaction.

Under the $6.4billion International Monetary Fund (IMF) programme, the government had agreed to appoint a financial adviser for privatisation of PIA by end-March and divest 26 per cent shares of PIA to a strategic investor by end-December 2014. Though the appointment of financial adviser was later revised to June 2014, the government missed the target again. Now it is expected to finalise the name by end of July 2014. Senior officials at PC told Business Recorder that PIA Board meeting will be held on July 22 where approval of the appointment of financial adviser would be accorded with terms of reference to prepare a comprehensive restructuring plan and seek a potential strategic private sector participation in the company. After the appointment of a financial adviser, the restructuring and privatisation process would gain momentum.

According to a Letter of Intent (LoI) agreed with IMF, the government has committed to continue its restructuring plans and hire professional chief executives and board members for enterprises with a corporate structure in line with the corporate governance rules. It further states that the government is developing medium-term action plans to restructure PIA, Pakistan Steel Mill (PSM) and Pakistan Railways (PR). Specifically for PIA a financial adviser would be appointed by end-June 2014 (structural benchmark) to seek potential options for restructuring and strategic private sector participation in the company. In the meantime, PIA will continue leasing more efficient airplanes and rationalising routes. Five consortia in the run for the purchase of Fesco, whose credentials were evaluated, include BMA, consortium of UBL and EV, consortium of SSJBL and Burj Power, consortium of Almal Capital and consortium of Grant Thornton.

Five international consortia have responded to the government's advertisement for the post of financial adviser for PIA. The first consortium comprises Jefferies - an international investment bank, ICF International, Shajar Capital, Charles Russell of the United Kingdom, Irfan & Irfan, BDO Ebrahim, Aon Hewitt and Consulum. The second consortium includes McKinsey, MCB Bank, RIAA and Deloitte. The third consortium consists of EY of the UK, Seabury, a global advisory and investment bank, Haidermota BNR, Freshfields Bruckhaus Deringer, UBL, Excelerate and Mediators Private Limited. The fourth consortium includes Rothschild - a financial advisory group, Oliver Wyman - an airline economic analysis firm, Mercer Consulting, Khalid Majid Rehman, Hassan Kaunain Nafees - a legal firm and Pinetree Capital.

The fifth consortium comprises Dubai Islamic Bank, IATA Consulting, which has expertise in aviation business, Deloitte, Haidermota BNR, Freshfields Bruckhaus Deringer, Abacus Consulting, APCO - a communication strategy firm and Prestige.

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PLP NEWS ALERTS EMAIL No. 166-2014 Privatisation process: HEC employees smell a rat?

July 18, 2014

MUSHTAQ GHUMMAN

Privatisation process of Heavy Electrical Complex (HEC) is reportedly not transparent and designed to extend a 'favour' to local firm. These apprehensions were expressed by the employees of HEC in a letter to the Minister for Industries and Production, Ghulam Murtaza Khan Jatoi.

M/s Heavy electrical Complex, Hattar, District Haripur was established in 1994 to manufacture new different rating power transformers to fulfil current as well as future needs of NTDC/DISCOs, K-Electric (former KESC) and other customers like Pakistan Steel Mills, CDA etc at control-led cost/rate.

The HEC has the capacity to manufacture new power transformers having different ratings ie 7.5MVA, 132/6.6KV, 10/13MVA, 132/11.5KV, 20/26MVA, 132/11.5KV, 31.5/40 MVA, 132/11.5KV, 31.5/40 MVA, 132/66/11.5KV, 31.5/40 MVA, 132/12/l1 KV. HEC has also the facilities for repairing different rating and make (ie Siemens, MINEL, Hyundai, ANSA.LDO etc) power transformers such as 10/13MVA 132/11.5KV, 20/26MVA, 132/11.5KV & auto transformers having capacity of 150MVA, 160MVA, 220/132/11KV & 250 MVA, 15.75/220KVgenerating transformer for GENCO. In this regard HEC helps NTDC/DISCOs, K- Electric etc save their outstanding expenditures against purchase of new power transformers.

HEC's main clients are NTDC, DISCOs (ie TESCO, LESCO, PESCO, HESCO, GEPCO, MFPCO, (IESCO, QESCO, SEPCO), K-Electric, Pakistan Steel Mills, Heavy Mechanical Complex Taxila, CDA, textile units and steel industry etc. According to the employees, HEC is the only unit in the public sector to manufacture different rating power transformers (ie 10/13, 20/26 & 4OMVA). HEC generates its revenue from its own resources and from this revenue they fulfil their needs (such as procurement of material, payment of salaries etc) Minister has been further submitted that HEC has no any liability in terms of bank loans.

Employees maintain that in case HEC is privatised then only one competitor would remain in the local market and they will raise prices of power transformers which will raise the cost of electricity which will then be passed onto the common man. HEC employees believe that after the privatisation of HEC, the prices of different ratings will rise by 10-20 per cent.

Employees claimed that during the privatisation process against HEC in the phase of SoQ (Statement of Qualification) three parties submitted their documents to purchase HEC. However, one party withdrew from the process and only two parties are left. According to PPRA rules there should be at least three parties at the time of bidding process, but HEC employees claim that the government especially Privatisation Commission is interested to sell HEC to one of the two firms which means a violation of PPRA rules.

If any party has 40% or more business in the local market then it will fall in the criteria of

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PLP NEWS ALERTS EMAIL No. 166-2014 monopoly rules. If HEC is handed over to that party after privatisation it will capture the 30% business of HEC. Since a multinational company shut down power transformers' business in Pakistan then that local party will also capture the business of Siemens. "In case such a situation emerges then [local party] will operate as a monopoly (ie it will hold above 90% business in the country) in the field of manufacturing of power transformers and they will offer their power transformers to NTDC/DISCOs on the basis of their desired rates/prices," the letter said.

Current Heads of all Departments (HoDs) of HEC are interested in purchase by that local company or party for the latter has offered them a high salary package and assured them that they will remain part of their company (PEL) after privatisation of HEC therefore nowadays HODs are not given any importance in running HEC and HODs favour privatising HEC for their own interest/benefits.

Furthermore, employees also submitted that although HEC has won tenders of different DISCOs (ie PESCO, TESCO, LESCO, FESCO, IESCO, MEPCO, GEPCO, SEPCO etc) to manufacture power transformers but they are hesitating to place the orders in HEC due to unknown reasons. Previously, successive governments deputed technical MDs at HEC who run the factory with devotion but currently, for the last three years the top bosses are from the bureaucracy (non technical) who lack interest in running HEC and they visit the factory only one day a week or even after 1 or 2 months and stay in office for only 2 to 3 hours. Presently, about 200 employees are working in HEC (ie 25 engineers/officers including 170 labour/workers).

July 18, 2014

SOHAIL SARFRAZ

The Federal Board of Revenue (FBR) on Thursday said the foreign institutional investors have been brought into tax net and tax will now be collected through the use by National Clearing Company of Pakistan Limited (NCCPL) mechanism as laid down in the Eighth Schedule of the Income Tax Ordinance. According to the FBR's income tax circular on explanation of Finance Act 2014, the FBR has explained the capital gains on disposal of securities.

The relevant sections are section 37A and section 100B, Division VII of Part I of first Schedule. The FBR said that a number of amendments have been made in the regime of CGT on disposal of securities, namely: Inclusion of debt securities in the definition of security, extension in the holding period for taxability, rationalisation of tax rates and bringing foreign institutional investors into tax net.

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PLP NEWS ALERTS EMAIL No. 166-2014 regime [section 100B(2)(d)] and will continue to be taxed as in the past with the rates applicable to companies and not the rates as amended in Division VII of Part I of First Schedule. Individuals, on the other hand, trading debt securities shall be subject to mechanism as laid down in the Eight Schedule to the Ordinance.

Secondly, securities were subject to tax if these were held for a period of less than 12 months. Through Finance Act 20l4, securities held for a period between 12 and 24 months have also been made taxable under the Ordinance, at a rate of 10%. However, securities held for a period of more than 24 months shall continue to be taxed at 0 percent.

Third, previously the rates of tax for securities held up to 6 months and 12 months stood increased to 17.5 percent and 9.5 percent, respectively for tax year 2015 and onwards. In order to ensure continued buoyancy prevailing at present, in the stock markets and to save the capital markets from withdrawal of investments, capital gains tax rates have been rationalised. Through Finance Act, 2014, the rates have been revised and for securities held up to one year, capital gains tax shall be 12.5 percent, and for securities held between 12 and 24 months, the rate shall be 10 percent.

Lastly, as Eight Schedule was not applicable to Foreign Institutional Investors investing in Stock Exchange and NCCPI was not required to collect tax from them in view of section 100B(2)(d), it was expected that Foreign Institutional Investors will file their returns to declare their gains. However, since no Return was being filed, nor was it possible to enforce their returns, foreign institutional investors have been brought into tax net by amending section 100B and tax shall now be collected using NCCPL's mechanism as laid down in the Eight Schedule to the Ordinance, the FBR added.

July 18, 2014

The National Accountability Bureau (NAB) filed a final reference in an accountability court in the Karkey rental power case on Thursday. Accountability court judge Mohammad Bashir heard the rental power reference against ex-Prime Minister Raja Pervaiz Ashraf. During the course of hearing, the accountability bureau presented a reference against the ship-mounted Turkish power project, Karkey.

Meanwhile, the court directed to provide copies of the reference to all the accused including Raja Pervaiz Ashraf and asked them to appear on September 1 to record their statements. The court also reserved its decision on Piran Ghayab and Sahuwal rental power references till July 21. The hearing of references adjourned till September 2.

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PLP NEWS ALERTS EMAIL No. 166-2014 Lawyers file petitions against Imran

July 18, 2014

KHUDAYAR MOHLA

The Supreme Court was urged on Thursday to initiate contempt of court proceedings against Pakistan Tehrik-e-Insaf Chief Imran Khan for allegedly scandalising, ridiculing and bringing disrespect to apex court of Pakistan and its former Chief Justice Iftikhar Muhammad Chaudhry. Hashmat Habib filed a petition on behalf of president and general secretary of Islamabad Bar Association (IBA) under Article 204 of the Constitution of Pakistan read with Section 3 and 5 of the Contempt of Court Ordinance, 2003 and made Imran Khan the respondent.

The petitioners submitted that Imran Khan's "contemptuous" conduct has maligned and scandalised the role of former Chief Justice Iftikhar Muhammad Chaudhry and brother judges, adding that it amounts to obstructing the process of the justice and bringing hatred towards Supreme Court. They further said the alleged person is liable to be punished in accordance with law.

The petitioners alleged that Imran Khan proved to be so irresponsible that he in a way abused and doubted the very integrity and loyalty of former Chief Justice Iftikhar Muhammad Chaudhry with Pakistan while discussing his performance as Chief Justice of Pakistan. They said that Khan used to express that "former Chief Justice Iftikhar Muhammad Chaudhry disappointed the nation... he did what Indian umpires do in matches against Pakistan."

The petitioners further said that Imran many a time baselessly alleged that the former Chief Justice Chaudhry was behind rigging in general election 2013. The petitioners also submitted that during his address to public rally in Faisalabad, the respondent had alleged the present regime and former Chief Justice Chaudhry as well as media house Geo/Jang were equally responsible for what he said rigging in the general election, 2013.

Meanwhile, a writ petition was filed in the Islamabad High Court (IHC) on Thursday, pleading before the court to take notice of statements made by the Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan, through which he defamed, ridiculed former Chief Justice Iftikhar Muhammad Chaudhry and Judiciary.

The petition was filed by Advocate Moulvi Iqbal Haider, urging the court to take judicial notice against Imran Khan for allegedly ridiculing former Chief Justice Iftikhar Muhammad Chaudhry and Judiciary in accordance with law for the protection of judicial orders and judgements. The petitioner contended that Imran Khan committed gross violation of Article 5, 14, 25, 175,189 ,204 R/w Article 63(1) (g) of the constitution through serious allegations at different forums, including electronic and print media on Judiciary as well as Pakistan Army/ISI as according to him all of them were involved in rigging of general elections 2013.

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PLP NEWS ALERTS EMAIL No. 166-2014 Textile exports increase by 3.9 percent

July 18, 2014

TAHIR AMIN

Textile exports registered an increase of 3.9 percent and remained at $13.8 billion in 2013-14 against $13.3 billion during the same period of last fiscal year. Textile export to the European Union (EU) registered an increase of 18 percent reaching the figure of $5 billion for the first time due to the GSP plus status given by the EU, while textiles exports to the rest of the world declined by 3.5 percent, revealed Ministry of Textile Industry officials.

Briefing the National Assembly Standing Committee on Textile Industry that met with Khawaja Ghulam Rasool Koreja, Secretary Textile Ministry Rukhsana Shah said the country's overall textile export increased by 3.95 percent in the last fiscal year mainly due to the increase in exports to the EU after getting the GSP plus status. She further said that investment trend in the textile sector declined as compared to other regional countries due to the inconsistent polices on taxes, non-availability of energy, high interest rates and stuck up liquidity on drawbacks and refunds. Textile Minister Abbas Khan Afridi said due to energy crisis some textile mills were closed. In a bid to protect cotton growers, the Textile Minister urged the authorities to fix a minimum support price for cotton like sugar and other items. Under the new proposed textile policy (2014-19) value-added textile sector would be incentivised while no incentives would be given on yarn. He further said that all the incentives to the value-added sector had been ensured through the Finance Bill. According to the policy, textile export would be increased to $26 billion in next five years, besides creating jobs opportunities. The minister said that due importance was also given to value-added sector in the previous policy; however it was not fully implemented. The previous government announced a financial package of Rs 188 billion to implement the policy, but only Rs 28 billion were disbursed.

Afridi said that drawback for local taxes and levies would be given to exporters of textile products on Freight on Board (FOB) values of their enhanced exports on an incremental basis if increased beyond 10 percent over previous year's exports at the rate of four percent on garments, two percent on made-ups and one percent on processed fabric.

The Secretary said that an expeditious refund system was being introduced and a fast track channel for manufacturers-cum-exporters was being created. Federal Board of Revenue would dispose of all their pending sales tax refund claims before September 30, 2014. In future all admissible refund claims of exporters would be disposed of within three months, she added.

The minister said under the proposed policy sick units would be revived while cotton would be standardised. Currently Rs 60 billion businesses in cotton seed is controlled by seed mafia, however after the passage of proposed Breed Cotton Act, laying in the parliament for last 12 years this mafia would weaken. There are 750 seed companies operating in the country where 150 companies have been de-registered on their performance. Officials further said currently available certified cotton seed in the country was 5,365 tons against requirement of 40,000 tons.

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PLP NEWS ALERTS EMAIL No. 166-2014 Kohlu-Dera Bugti area of Balochistan: E&P companies restart activities

July 18, 2014

ABDUL RASHEED AZAD

Following an effective methodology adopted by the government, exploration and production (E&P) companies have restarted oil and gas exploration activities in the militancy-infested Kohlu-Dera Bugti area of Balochistan. The government has of late adopted an effective strategy to tap Pakistan's biggest gas reserves of about 22 Trillion Cubic Feet (TCF) in the Kohlu-Dera Bugti area of Balochistan, which have the potential commercial value of $110 billion and realistic value of $77 billion and will last for 100 years.

"We are currently making a strategy for initiating gas exploration in district Kohlu and other potential areas with huge oil and gas reserves after a long wait for easing of the tension and armed resistance of the followers of Nawab Akbar Khan Bugti following his killing in a military operation on August 26, 2006," a senior government official told Business Recorder here on Thursday.

The new chief of Mari tribe Nawab Changez Khan Mari, Mir Jam Kamal Khan, State Minister for Petroleum and Natural Resources, and PML-N Balochistan chapter chief Sardar Sanaullah Zehri have played an effective role in normalising the situation, which has enabled the E&P companies like state-run OGDCL, Mari Petroleum Limited and Pakistan Petroleum Limited (PPL) to restart operations in the region," the official added.

"The US-based Occidental Petroleum Corporation prepared a seismic report of Kohlu district costing $20 million in 1992-93 and confided to the then government that the area has the potential gas reserves of 22 trillion cubic feet, which is enough for the next 100 years. But tension between Nawab Akber Bugti and the then regime had led to the stoppage of the initiation of exploration activities.

Out of the 22 TFC, the official said, 15 TFC gas reserves are easily recoverable. Kohlu district is located some 20 kilometers from Sui, where gas reserves of eight TFC were discovered some 50 years back. Pakistan has so far utilised only five TFC of gas reserves of the Sui gas field in 50 years while five TFC gas reserves are yet to be utilised. In the past, the government failed to launch exploration activities in Kohlu, Dera Bugti and Barkhan areas of the Balochistan because of the armed resistance by the followers of Nawab Bugti.

The government has awarded an exploration license to the Oil and Gas Company Limited (OGDCL) on December 29, 2004 of Block No 2968-3 of Kohlu covering an area of 2459.11 sq km, located in Kohlu and Dera Bugti agencies, district Barkhan of Balochistan. The block falls in the prospective Zone-II, Kohlu. This is a joint venture of the OGDCL and MGCL with working interest shares: OGDCL: 60 percent (Operator) and MGCL: 40 percent.

OGDCL had constructed an 80-kilometer long road which connected Kup -a far-flung area of Kohlu- with the main highway to start the exploration activities in the area, official said and

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PLP NEWS ALERTS EMAIL No. 166-2014 added that Prime Minister Nawaz Sharif is personally monitoring the situation and has directed the OGDCL and other companies to materialise these projects as early as possible. For the exploration activities, the government has not only engaged local politicians and tribal leaders but has also started a number of health, education, socio-economic projects for welfare of the locals.

July 18, 2014

The Supreme Court on Thursday adjourned till August 20 the hearing of a plea of Jamaat-i- Islami leader Liaquat Baloch over the availability of wheat flour and other foodstuffs to public at affordable prices. Appearing before a SC bench of Advocate General KPK Latif Yousafzai, submitted a comprehensive report on sasta atta - sasta ghee package, saying a targeted subsidy would be given to people of the province.

He said that the amounts of subsidies on wheat flour and ghee would be Rs 10 and Rs 40, respectively. Hanif Khattan, Advocate General Punjab, apprised the bench that the provincial government would give an annual subsidy of Rs 7200 to an deserving individual; however, he said that implementation of the plan would be carried out during financial year 2014-15.

Sindh Advocate General told the bench that the provincial government had given a significant raise in subsidy - from Rs 3 billion to Rs 4.6 billion - as a total of 1.5 million people were benefiting from the Benazir Income Support Program (BISP). Secretary Food and Security Seerat Afroz submitted that the government was giving billions of rupees subsidies through BISP and Baitul Mall and utility stores, adding that matter relating to control food item prices had been discussed in the Council of Common Interest (CCI). The bench said that apex court lawyers would be nominated to judge the efficacy of provincial reports. The hearing of matter was adjourned till August 20.

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PLP NEWS ALERTS EMAIL No. 166-2014 AGP files petition against Dar, others

July 18, 2014

WAQAR LILLAH

A writ petition has been filed in the Islamabad High Court on Thursday, urging the court to restrain Minister of Finance Ishaq Dar from interfering in the administrative functions of the Auditor General of Pakistan.

The petition was filed by Auditor General of Pakistan (AGP) Muhammed Akhtar Buland Rana through his counsel Advocate Saeed Khursheed, pleading the court to bar Dar and Farah Tarin, Controller General of Accounts (CGA), from interfering into the administrative functions of the petitioner as Cadre Head of Pakistan Audit & Accounts Group of Pakistan and the constitutional powers of the petitioner regarding audit of spending from Public Accounts & Federal Consolidated Fund.

The petitioner made Federation through Secretary Establishment Division, Federal Minister for Finance Ishaq Dar, Secretary Finance Division, Farah Ayub Tarin, Controller General of Accounts, CGA, Rana Asad Amin, Advisor Ministry of Finance, Shabbir Ahmad, Additional Secretary Ministry of Finance, Jahangir Watto BS-20 officer of Pakistan Audit & Accounts Service working in the AGP Office, Islamabad and Interior Minister respondents in the petition.

Muhammed Akhtar Buland Rana pleaded before the court to direct the Federal Minister for Interior to provide entitled security to the petitioner and the minister may also be directed for non-execution of any warrant of arrest which is issued against the petitioner without due process of law & without prior notice to the petitioner of legal proceedings, if any, in the interest of justice.

July 18, 2014

According to a press release by the Ministry of Interior, July 29 to August 01, 2014 (Tuesday, Wednesday, Thursday and Friday) will be public holidays on the occasion of Eid-ul-Fitr.

-PR

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PLP NEWS ALERTS EMAIL No. 166-2014 Israelis airstikes resume after humanitarian lull

July 18, 2014

Fighting between Israel and Hamas resumed in deadly earnest Thursday, after a brief humanitarian cease-fire allowed Gaza residents to restock and hunker down, and as efforts towards a lasting truce intensified. A rocket fired from Gaza hit southern Israel exactly as the UN-requested five-hour lull ended at 3:00 pm (1200 GMT), and the Israeli military resumed its air strikes on the besieged Palestinian territory, killing three children in a strike in the heart of Gaza City, according to medics.

World leaders have called for a swift end to the bloodiest conflict in Gaza since 2009, with Israel's operation to stamp out rocket fire so far killing 234 Palestinians and cross-border fire from Gaza killing one Israeli. With regional efforts to broker a lasting cease-fire gathering pace in Cairo, an Israeli official said the Jewish state had agreed a truce with Hamas to begin at 0300 GMT Friday.

However Hamas, the Islamist movement which is the main power in Gaza, denied any deal had been struck. "The news about a cease-fire is incorrect. There are continuing efforts but no agreement until now," spokesman Sami Abu Zuhri told AFP in Gaza. Another Hamas spokesman, Ihab Ghussein, said there were talks and contacts under way but dismissed reports of a deal.

"The killing by the Israelis should stop before talking about any cease-fire," he told AFP. Cairo has once again become a diplomatic hub to end the fighting in Gaza after Egypt initially proposed a failed truce without consulting Hamas. As part of the peace drive, Palestinian president Mahmud Abbas met Egyptian President Abdel Fattah al-Sisi in the Egyptian capital on Thursday but no details were immediately released of their discussions.

Hamas has laid out a set of conditions, among them the lifting of Israel's eight-year blockade on the Gaza Strip, the opening of the Rafah border crossing with Egypt and the release of Palestinian prisoners Israel has rearrested after freeing them in exchange for kidnapped Israeli soldier Gilad Shalit in 2011. Violence flared before and even during the temporary cessation, but resumed with a ferocity afterwards, with three hours of fresh air strikes on Gaza, including one which killed three children in the middle of Gaza City, Gaza's emergency services spokesman said.

But the short-lived truce allowed medical aid to be transported into the besieged territory via the Kerem Shalom crossing in southern Gaza, the UN said. It also gave Gazans a chance to leave their homes and stock up on supplies, or pick up belongings from homes which they had evacuated. In Gaza City, the streets immediately filled with honking cars and traffic jams, and outside banks, hundreds of people massed by ATMs to withdraw money to buy supplies.

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PLP NEWS ALERTS EMAIL No. 166-2014 Microsoft to cut 18,000 jobs in major reorganisation

July 18, 2014

Microsoft's new chief Thursday unveiled the biggest job cuts ever at the US tech giant, aiming for a new strategic direction while integrating the Nokia phone division. The company said it would slash 18,000 jobs from its global workforce over the next year, the majority from the Nokia unit acquired this year. The cuts represent about 14 percent of Microsoft's global payroll of some 127,000.

The company will take a charge of between $1.1 billion and $1.6 billion for costs related to the layoffs. Of the total, some 12,500 professional and factory positions from Nokia "will be eliminated through synergies and strategic alignment," Microsoft said. Chief executive Satya Nadella said in an email to employees that the "difficult but necessary" cuts are part of a plan to bring a new focus to the US tech giant. "The first step to building the right organisation for our ambitions is to realign our workforce," he said. "It's important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas."

Nadella added that "we are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six months." Microsoft completed its take-over of Nokia's phone unit in April in a move that strengthened its position in mobile devices. The cost was around $7.5 billion. The moves come with Nadella, who became CEO earlier this year, seeking to reinvigorate a company that had been the world's largest but which has lagged in recent years as Google and Apple have taken leadership of the tech sector. Nadella said the restructuring "will simplify the way we work to drive greater accountability, become more agile and move faster," and would mean "fewer layers of management, both top down and sideways."

July 18, 2014

The Karachi share market on Thursday hit a historic high as the KSE-100 Index crossed the psychological barriers of 30,000 points supported by heavy foreign and institutional buying in banking and cement sectors. The benchmark KSE-100 index gained 400 points to close at 30,177 points as compared to 29,776.17 points Wednesday.

Samar Iqbal, AVP at Topline Securities, said the index surged by 1.33 percent to close above 30,100 points, for the first time ever. The local bourse rallied amid continuous healthy foreign inflows, she added. During the ongoing month, $33.7 million foreign inflows were received till July 16, 2014. Volume rose by 83 percent to 206 million shares and the value by 84 percent to Rs 11.2 billion, she maintained.

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PLP NEWS ALERTS EMAIL No. 166-2014

MCB, UBL, NBP, ABL and HBL rallied after Moody's raised outlook on these banks to stable from negative. Cement stocks continuously rallied in expectations of better June results, Samar said. During the intra-day trading, the index reached 30,204.51 points highest and 29,776.17 points lowest level. Following a bullish trend, volume at the ready counter climbed to 206.262 million shares compared to 112.8 million shares in previous session. Market capitalisation climbed by Rs 77 billion to Rs 7.072 trillion against Rs 6.995 trillion.

Ahsan Mehanti, an analyst at Arif Habib Corporation, said stocks closed all-time high led by oil, banking and cement stocks after Moody's changed outlook on 5 banks to stable from negative following upgrade on Pakistan's foreign currency rating to stable this week. Renewed foreign interest and speculations ahead of Sate Bank of Pakistan (SBP) policy announcement on July 19 played a catalytic role in bullish sentiment at KSE despite prevailing political uncertainty. Trading took place in 349 companies, of which 221 closed in green zone, 96 in red while 32 landed in blue zone.

All top 10 volume leaders recorded a positive trend. Fauji Cement emerged the volume leader with 20.3 million shares, up Rs 1.01 to close at Rs 21.21. K-Electric stood second, up Re 0.27 to close at Rs 7.77 on 18.26 million shares. Maple Leaf Cement gained Re 0.74 to close at Rs 31.49 on 13.51 million shares. Lafarge Pak moved up by Re 0.2 to close at Rs 16.12 on 11.35 million shares. Pak Elektron Ltd with 10.61 million shares, closed at Rs 30.0, up by Rs 1.27. Jah. Sidqq. Co bagged Re 0.52 to close at Rs 10.52 on 8.86 million shares. Pak. Int Bulk gained Rs 1.12 closed at Rs 24.62 on 8.21 million shares.

National Bank gained Re 0.69 to close at Rs 62.15 on 7.09 million shares. With a trading volume of 6.95 million shares D.G.K Cement closed at Rs 91.75, up Rs 3.5. Avanceon Ltd climbed by Re 0.2 to close at Rs 29.24 on 4.67 million shares. Island Textile and National Foods were the top gainers with Rs 40.75 and Rs 35.12 to close at Rs 898.75 and Rs 778.43 respectively. Nestle Pak and Wyeth Pak Ltd were the top losers with Rs 150.00 and Rs 149.53 to close at Rs 8,000.00 and Rs 3,870.51, respectively.

Aleeza Afreen, an analyst at Aba Ali Habib Securities, said that a historical day has been witnessed in the market where the KSE-100 successfully crossed the psychological barriers of 30,000 points supported by heavy foreign and institutional buying. Positive sentiment was initially generated by change in Moody's rating on Pakistan credit outlook amid upgrade in top big five banks of the country. Therefore, the market is expected to follow an upward trend in coming days, she added.

July 18, 2014

On Thursday, BRIndex30 opened at 16,493.40 and remained positive throughout the trading session. It touched an intraday high of 16,847.19 and an intraday low of 16,556.33 and closed at 16,839.17, which was 345.77 points or 2.1 percent higher than previous close. Total volume was 132,459,500, which was 64.22 percent of KSE All share volume and 86.62 percent of KSE 100

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PLP NEWS ALERTS EMAIL No. 166-2014 volume. The KSE All Share volume was 206,262,110 and KSE 100 volume was 152,926,870.

BR Commercial Banks Index Closed at 7,153.78 with a net positive change of 172.21 points or a percentage change of 2.47 and a total turnover of 30,205,700. BR Cement Index closed at 3,441.82 with a net positive change of 126.2 points or a percentage change of 3.81 and a total turnover of 64,073,700. BR Oil and Gas Index closed at 4,197.49 with a net positive change of 42.42 points or a percentage change of 1.02 and a total turnover of 13,590,200.

BR Tech & Comm Index closed at 929.14 with a net positive change of 11.59 points or a percentage change of 1.26 and a total turnover of 11,533,700. BR Power Generation and Distribution Index closed at 4,579.18 with a net positive change of 80.11 points or a percentage change of 1.78 and a total turnover of 21,536,500.

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PLP NEWS ALERTS EMAIL No. 166-2014 Business and Economy: Pakistan UK based investors call on Dar

July 18, 2014

A delegation of UK based investors group led by Farah Waters called on the Finance Minister, Senator Ishaq Dar on Thursday to explore investment opportunities in Pakistan. In her presentation Ms Waters told that the companies "Seacrest Shipping Company Limited" and Salfo & Associates are interested in doing business with Pakistan. The companies provide services in the areas of port and shipping, engineering, infrastructure development and logistics and they would like to set up joint ventures with the Pakistani investors.

"We would like to provide assistance in various projects related to infrastructure and energy. As we know that Pakistan is keen on developing energy projects, we could provide help in coal transportation and consultancy Services in various Projects" said Ms Farah. Loannis Foteinos from Seacrest Shipping Company also informed the Finance Minister that transportation of Hajj pilgrimages through ships can be made on highly competitive rates as compared to air travel which is much more expensive. The Finance Minister appreciated the interest shown by the delegation and said, "We appreciate the keen interest shown by investors group and hoped that the group will participate in competitive biddings through a transparent procedure in order to do business in Pakistan.

The Finance Minister directed Chairman Board of Investment (BOI) Miftah Ismail to provide every help in arranging meetings with the concerned Pakistani businessmen. The Finance Minister invited the investor group to huge opportunities in the exploration of Hydro-Carbons and said that success rate in Pakistan is very high as compared to other regions. He assured the investors group of support from government to FDI preferably on the model of joint-ventures with the private sector of Pakistan. The meeting was also attended by Miftah Ismail, Chairman BOI, Petros Mavroidis, Ambassador of Greece and Ms Alison Blake, Acting High Commissioner of UK, Rana Assad Amin, Advisor to Finance Ministry and senior officials of Finance Ministry.-PR

July 18, 2014

The country''s liquid forex reserves fell by $124 million in a week mainly due to foreign debt payment. According to weekly forex report issued by State Bank of Pakistan (SBP) on Thursday, the total liquid foreign reserves held by the country stood at $14.513 billion as on July 11, 2014 compared to $14.637 billion as on July 4, 2014. During the week under review, SBP''s liquid forex reserves decreased by $116 million to $9.486 billion compared to $9.602 billion in the previous week.

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PLP NEWS ALERTS EMAIL No. 166-2014

During the week ending July 11, 2014, SBP has made payments of $31 million on account of external debt servicing and other official payments. During the same period, SBP received $22 million from multilateral and bilateral sources. Reserves held by banks posted a decline of $7.6 billion to $5.027 billion during the last week.

July 18, 2014

Philippe Theibaud, Ambassador of France to Pakistan called on the Finance Minister Senator Ishaq Dar here on Thursday. The Ambassador briefed the Finance Minister about his country's desire to expand trade relations between the two countries and an increased interest by the French companies to invest in Pakistan.

He said that during the last fiscal year, there was foreign direct investment to the tune of $74 million by French companies in different sectors. He said that the Government of Pakistan's reform agenda with regard to economy is impressive and the results show that considerable progress has been made in this direction. He added that we are also very positive on GSP status and exports from Pakistan which will lead to enhancement of trade and economic co-operation.

He informed that the French companies have made investments in Uch Gas Powered energy Project and now they are also looking for other energy related opportunities to enhance their investments. Moreover, he added, French companies are also interested in automobile assembly projects and water and sanitation sector.

The Ambassador informed the Finance Minister that under the arrangement of the French Embassy, a Pakistani business delegation had a very useful visit to Paris in the last month of current year and now there are plans to bring in French businessmen group to Pakistan in the first quarter of next year. He concluded that his country will be looking forward to enhance economic exchanges.

The Finance Minister informed the Ambassador that managing the broken economy at a time when the new government took over one year ago was a daunting task but as a result of prudent economic policies of the government and guidance of the political leadership, the economy is moving in the right direction now. He said that after the first year of firefighting, we have put the economy on the right track and now we are in a comfortable situation to take forward our reform agenda.-PR

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PLP NEWS ALERTS EMAIL No. 166-2014 Dar chairs moot on facilitating Pakistan-Iran trade

July 18, 2014

The Finance Minister Senator Ishaq Dar chaired an inter-ministerial meeting on facilitating Pakistan-Iran trade, within the ambit of UN sanctions here on Thursday. Finance Secretary Dr Waqar Masood briefed the participants on the decisions made in the last meting held on July 05, 2014 and progress made so far. He informed that in consultation with all the stakeholders, there are avenues which can be followed for trading with Iran on non prescribed items and through non sanctioned entities.

He said that NTDC is willing to clear outstanding dues of Iran on account of supply of electricity to border areas and in this regard, Commerce Ministry is taking appropriate steps for commodity exchange. It was further informed that Iran has already laid down transmission lines up to their border for possible power supply to Gwadar and adjoining towns.

Secretary Commerce informed the Finance Minister that consultations are already at advanced stage for supply of Basmati rice and wheat to Iran on account of commodity exchange. He also informed that Iran has recently lifted ban on mango import from Pakistan and the gesture has set the pitch for enhanced barter trade. Finance Minister directed the concerned ministries and departments to resolve outstanding issues immediately and remove impediments in order to exploit full potential of bilateral trade. He mentioned about putting on fast track all the pending issues for resolution in or before the Joint Economic Commission to be held soon.

The Finance Minister said that during the Prime Minister's visit to Iran, both the sides had reaffirmed their commitment that while remaining within the ambit of UN sanctions, mutual trade and co-operation will be enhanced with barter trade and commodities exchange mechanism. He said that we need to build mutual confidence to overcome the impediments in barter trade and commodity exchanges facilities enabling the two countries to benefit from their proximity and neighbourhood.-PR

July 18, 2014

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PLP NEWS ALERTS EMAIL No. 166-2014

The meeting approved Balochistan Nutrition Programme for Mothers and Children of Government of Balochistan, costing Rs 1,492.62 million that will achieve the objective of ensuring availability of infant and young child feeding (IYCF) and community-based management of severe including acute malnutrition (CMAM) services. Ahsan Iqbal said that distribution network and transmission lines of electricity projects must be upgraded and augmented to cater the additional generation due to upcoming mega projects.

While discussing the Greater Karachi Water Supply Scheme (K-IV) (Phase-I), the Minister informed the house that financial share of the federal government in the project has been raised from one-third to half in compliance of Prime Minister of Pakistan''s commitment during his recent visit to Karachi. The Minister said that some people blame federal government of interfering in provincial matters. He added that the federal government interferes but in a positive manner like in this project. He also sought assurance from provincial authorities regarding availability of water at the project site and directed the authorities to provide clean drinking water to the people of Karachi on urgent basis.

The minister expressed his reservation over the waste management system in Karachi. He said that the solid waste of Karachi is dumped into sea which is creating many environment and

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PLP NEWS ALERTS EMAIL No. 166-2014 health hazards for people. The forum approved the project subject to the condition that cost escalation of the project in any case will be borne by the provincial government. Minister also stressed upon the authorities to use funds in an efficient manner and ensure transparency at all stages. The project was recommended for consideration of Ecnec.

July 18, 2014

MUHAMMAD SALEEM

Punjab government has allocated Rs 7,150 million in budget 2014-15 for regional planning sector. "Integrated Cholistan Development Programme" at the cost of Rs 2,348 million will also create a visible impact and improvement in the living quality of people of Cholistan. The package includes construction and rehabilitation of roads and water supply schemes in Cholistan, sources told Business Recorder.

Less developed regions of Punjab comprising barani tracts, sandy deserts of Cholistan, tribal areas of D G Khan and Rajanpur and 11 districts of Southern Punjab have not kept pace with the rest of the province in terms of development and economic progress. With scanty rainfall, these ecological zones face the challenges of acute shortage of water, mostly small land holdings and primitive agriculture techniques. Government assigns high priority to the removal of regional disparities in the province.

This objective is being achieved through direct investment in less developed areas to enhance rural household incomes and employment opportunities, improving infrastructure and providing financial support to enhance production and skill development of the target groups through participatory approach, sources said.

It may be noted that DFID assisted "Punjab Economic Opportunities Programme (PEOP)" initiated in 2010-11 in districts of Bahawalpur, Bahawalnagar, Lodhran and Muzaffargarh has been extended to 10 more districts ie Lahore, Sheikhupura, Faisalabad, Chiniot, Sargodha, Gujranwala, Narowal, Vehari, Khenewal and R Y Khan. Under this programme, 54,057 youth including 21,123 female trainees have been provided skills training. International Fund for Agriculture Development (IFAD) has joined the efforts of the Punjab government for maintaining the regional balance and poverty alleviation by launching a project "Southern Punjab Poverty Alleviation Project" (SPPAP) in 2011-12 in the districts of Bahawalpur, Bahawalnagar, Rajanpur and Muzaffargarh having a total cost of Rs 4,126 million.

During the FY 2013-14 around 10,000 families have been provided assets creation package in the shape of provision of livestock animals, land to landless widows and clean drinking facilities to masses. In the financial year 2014-15, 40,000 beneficiaries will be provided support to enhance their incomes.

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PLP NEWS ALERTS EMAIL No. 166-2014 The specific features of regional planning sector are: removal of regional imbalances, multi- sectoral integrated development programmes, targeted poverty alleviation schemes for less developed areas, DFID assisted Punjab Economic Opportunities Programme (PEOP) for skills development intervention, tribal area development project for physical Infrastructure development, community development and social infrastructure, IFAD assisted Southern Punjab Poverty Alleviation Project (SPPAP), provision of physical and social infrastructure in Cholistan under Cholistan Development Authority, integrated development of Cholistan, construction and rehabilitation of roads and water supply schemes in Cholistan, water resource development (through Construction of 400 mini dams along with Command Area Development) of Potohar Region, barani areas of Punjab; rain water harvesting project in all villages in Potohar area by ABAD through command area development, catchment treatment works (soil conservation works, (plantation of forest tress), and solar energy irrigation system and promotion of alternate energy for command area development of 173 mini dams in Potohar region.

July 18, 2014

The Privatisation Commission''s (PC) Board is scheduled to meet on July 22 to select financial advisers (FAs) for restructuring and strategic privatisation of Pakistan International Airlines (PIA) as well as strategic sale of Faisalabad Electric Supply Company Ltd (Fesco). The evaluation committee of the PC, headed by Chairman and Minister of State Muhammad Zubair, was given presentations by potential parties for strategic divestment of 26 per cent shares with management control of PIA and strategic sale of Fesco.

The evaluation committee included two members of the Board, Secretary, Director General and representatives from Ministry of Finance and concerned ministries. A spokesman for the PC said that various local and international consortia bid for FAs and sale of PIA and Fesco shares and five consortia were selected for presentation of each transaction. He said the evaluation committee finalised its recommendations on the selection of FAs which will likely be put up in the upcoming board meeting. The 12-member board will approve one consortium for each transaction.

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PLP NEWS ALERTS EMAIL No. 166-2014 According to a Letter of Intent (LoI) agreed with IMF, the government has committed to continue its restructuring plans and hire professional chief executives and board members for enterprises with a corporate structure in line with the corporate governance rules. It further states that the government is developing medium-term action plans to restructure PIA, Pakistan Steel Mill (PSM) and Pakistan Railways (PR). Specifically for PIA a financial adviser would be appointed by end-June 2014 (structural benchmark) to seek potential options for restructuring and strategic private sector participation in the company. In the meantime, PIA will continue leasing more efficient airplanes and rationalising routes. Five consortia in the run for the purchase of Fesco, whose credentials were evaluated, include BMA, consortium of UBL and EV, consortium of SSJBL and Burj Power, consortium of Almal Capital and consortium of Grant Thornton.

Five international consortia have responded to the government''s advertisement for the post of financial adviser for PIA. The first consortium comprises Jefferies - an international investment bank, ICF International, Shajar Capital, Charles Russell of the United Kingdom, Irfan & Irfan, BDO Ebrahim, Aon Hewitt and Consulum. The second consortium includes McKinsey, MCB Bank, RIAA and Deloitte. The third consortium consists of EY of the UK, Seabury, a global advisory and investment bank, Haidermota BNR, Freshfields Bruckhaus Deringer, UBL, Excelerate and Mediators Private Limited. The fourth consortium includes Rothschild - a financial advisory group, Oliver Wyman - an airline economic analysis firm, Mercer Consulting, Khalid Majid Rehman, Hassan Kaunain Nafees - a legal firm and Pinetree Capital.

July 18, 2014

MUSHTAQ GHUMMAN

Privatisation process of Heavy Electrical Complex (HEC) is reportedly not transparent and designed to extend a ''favour'' to local firm. These apprehensions were expressed by the employees of HEC in a letter to the Minister for Industries and Production, Ghulam Murtaza Khan Jatoi.

The HEC has the capacity to manufacture new power transformers having different ratings ie 7.5MVA, 132/6.6KV, 10/13MVA, 132/11.5KV, 20/26MVA, 132/11.5KV, 31.5/40 MVA,

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PLP NEWS ALERTS EMAIL No. 166-2014 132/11.5KV, 31.5/40 MVA, 132/66/11.5KV, 31.5/40 MVA, 132/12/l1 KV. HEC has also the facilities for repairing different rating and make (ie Siemens, MINEL, Hyundai, ANSA.LDO etc) power transformers such as 10/13MVA 132/11.5KV, 20/26MVA, 132/11.5KV & auto transformers having capacity of 150MVA, 160MVA, 220/132/11KV & 250 MVA, 15.75/220KVgenerating transformer for GENCO. In this regard HEC helps NTDC/DISCOs, K- Electric etc save their outstanding expenditures against purchase of new power transformers.

HEC''s main clients are NTDC, DISCOs (ie TESCO, LESCO, PESCO, HESCO, GEPCO, MFPCO, (IESCO, QESCO, SEPCO), K-Electric, Pakistan Steel Mills, Heavy Mechanical Complex Taxila, CDA, textile units and steel industry etc. According to the employees, HEC is the only unit in the public sector to manufacture different rating power transformers (ie 10/13, 20/26 & 4OMVA). HEC generates its revenue from its own resources and from this revenue they fulfil their needs (such as procurement of material, payment of salaries etc) Minister has been further submitted that HEC has no any liability in terms of bank loans.

If any party has 40% or more business in the local market then it will fall in the criteria of monopoly rules. If HEC is handed over to that party after privatisation it will capture the 30% business of HEC. Since a multinational company shut down power transformers'' business in Pakistan then that local party will also capture the business of Siemens. "In case such a situation emerges then [local party] will operate as a monopoly (ie it will hold above 90% business in the country) in the field of manufacturing of power transformers and they will offer their power transformers to NTDC/DISCOs on the basis of their desired rates/prices," the letter said.

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PLP NEWS ALERTS EMAIL No. 166-2014 Copyright Business Recorder, 2014 IMF proposal on retirement age limit rejected

July 18, 2014

NAVEED BUTT

Pakistan's federal expenditure on salaries and pensions is estimated to be about Rs 450 billion, including pension expenses of about Rs 171 billion for the financial year 2013-14. As part of public expenditure reforms programme, the IMF has suggested increase in the retirement age as a way out of rising pension bill due to improved life expectancy rate. The committee met with Senator Kulsoom Parveen in the chair at Parliament House on Thursday. Senators Dr Saeeda Iqbal, Kamil Ali Agha, Mrs Rubina Khalid, Yousaf Badini, State Minister for Parliamentary Affairs Sheikh Aftab Ahmed, Secretary Establishment, Additional Secretary Interior Muhammad Imtiaz, Acting Inspector General Police Islamabad Khalid Khattak and others participated in the meeting.

She said the Cabinet Division should write letters to all the ministries to get details of vacant

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PLP NEWS ALERTS EMAIL No. 166-2014 vacancies and subsequently submit it to the committee. The Secretary Establishment said that a summary has been presented to the Prime Minister to lift ban on recruitment on which the Prime Minister said that vacancies should be filed in those departments where there is necessity for staff. The chairperson said that Fawad Hassan Fawad in the Prime Minister Secretariat is looking after the issue and he should be summoned in the next meeting for getting details.

Copyright Business Recorder, 2014 Employees' registration with Pessi: Punjab to launch amnesty scheme for industrial, trade sector

July 18, 2014

SAFDAR RASHEED

Punjab Labour and Human Resources department has decided to launch amnesty scheme for industrial sector from next month. This was disclosed by Provincial Minister for Labour and Human Resource Raja Ashfaq Sarwar here on Thursday. He said Punjab Chief Minister Shahbaz Sharif has approved this scheme, recommended by Labour department for industrial, commercial and trade sector for its new registration with Punjab Employees Social Security Institute (Pessi) so as to enhance social security contribution by waving of all past dues.

Raja Ashfaq Sarwar while giving details of the forthcoming amnesty scheme said that the main purpose of this initiative is to eliminate corruption at all levels by restoring faith of industrial as well as trade sector to renew registration of functional units for which officers from the institute will regularly visit all the chambers, labour as well as employers' federations, bodies, unions and industry to make all the stakeholders aware of this step taken by Punjab government, giving them a chance to clear their long pending arrears of contribution and register their units and workers with a fresh start.

Strict action will be taken against those who would not register themselves after given fixed period, he added. PESSI achieved an income of more than eight billion rupees in last financial year through social security contribution, profit by investments, advance recoveries, IPPs and other sources while proposed target income for next fiscal year 2014-15 is around more than nine billion rupees.

He said that budget of PESSI was Rs 729.440 million last year while proposed budget of this year is Rs 292.504 million whereas PESSI is taking all-out efforts to remove these budget deficits. A PESSI Pension Fund Trust has also been established which will help out to safeguard pensioners' future along with extra saving of an amount of Rs 500 million along with enhancement of investments. He further said that pragmatic measures would be taken regarding the training programmes, purchase of ambulances, anti-cancer medicines and interferon, safety measures of social security hospitals.

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PLP NEWS ALERTS EMAIL No. 166-2014 Traders demand withdrawal of controversial SRO 608(1)

July 18, 2014

The business community of South Punjab reiterated its demand to withdraw this controversial SRO 608(1)2014 and they rejected it unanimously and called for its immediate withdrawal. Multan Chamber of Commerce and Industry (MCCI) President Khawaja Usman assured the traders of his full support for the early withdrawal of the SRO that could create troubles for them in the long run.

He said he had already requested the government to put in place the mechanism of public-private dialogue so that the policies could be made result oriented. He said in the presence of huge smuggling and massive under invoicing it would not be possible for the government to get desired economic results.

Khawaja Usman said at a time when the economy is passing through very critical times because of the shortage of gas and electricity, new taxation measures, like SRO 608(I)2014, are bound to create a wrong impression about the government. Khawaja Usman said it is very unfortunate that instead of widening tax base and bringing the untaxed sectors into the tax net, steps are being taken to squeeze the existing tax payers. He said at a time when both the trade and industry are looking for a relief package to run their businesses, they are being pushed to the wall by implementing SROs like SRO 608(I)2014.

Khawaja Usman said the FBR and the LCCI are not on the same page on the issue as the FBR wants documentation of the economy through this controversial SRO, while the LCCI believes that all the untaxed sectors should be taxed and enforcement of professional tax needs to be strengthened. The LCCI is firm on its stand and calls for early withdrawal of the SRO 608(I)/2014, he added.

He said FBR should avoid implementing the SRO without the consultation of the business community for being the main stakeholders and FBR should make the changes through public- private dialogue. He further said that the FBR is shifting its burden of monitoring and tracking of the tax system on business community which is unjust and unethical.

July 18, 2014

The business community has expressed satisfaction at the exchange rate stability in recent weeks arguing that as a net import country Pakistan benefits from a stronger rupee. The IMF staff report

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PLP NEWS ALERTS EMAIL No. 166-2014 finalised after conclusion of third review under the Extended Fund Facility (EFF) for Pakistan has raised concerns over the appreciation of exchange rate terming it overvalued and stressed that a more flexible exchange rate will help State Bank of Pakistan (SBP) to better reach its reserves objectives and boost competitiveness.

Talking to Business Recorder, Shaban Khalid, President Islamabad Chamber of Commerce and Industry (ICCI), said Pakistan was a net import economy and with the appreciation of local currency the oil import bill declined, worker remittances increased and foreign currency reserves became stable. He further argued that the local currency was not overvalued and had been stable for several months. Most exports were raw materials and the appreciation of local currency had not affected their sales too much, he added.

Chairman Pakistan Apparel Forum Javed Balvani said that exporters suffered a decline of about Rs 65 billion in their profits due to the sudden appreciation of the local currency. He further said that the government had failed to pass on the impact of local currency appreciation as no decline was observed in prices of any item. According to the IMF report, the Pakistani authorities do not share IMF staff's view that the exchange rate is somewhat overvalued, and place greater priority on the nominal exchange rate stability.

July 18, 2014

RIZWAN BHATTI

The Trading Corporation of Pakistan (TCP) Board of Directors has decided to adjust/revert the 39 'conditionally' regularised employees against the post, matching with their qualification at the time of regularisation. Sources told Business Recorder on Thursday that the TPC board met on July 16, 2014 with TCP chief Rizwan Ahmed in the chair and discussed long pending dispute of 39 employees, whose regularisation was subject to fulfilment of condition of required matching qualification.

"The issue of conditional appointment was placed before the board in its 293rd meeting held on Wednesday and the board finally decided to adjust the employees against the post matching with their qualification as on November 4, 2011. With this decision, all conditionally regularised employees have been reverted as per their qualification at the time of regularisation. Following of directives of the Ministry of Commerce (MoC) and the Establishment Division, the TCP regularised some 197 temporary employees, working in TCP as contract employees, for a period of one year or more in 2011.

Of 197 temporary employees, some 39 were working as contractual staff on those seats/posts, which were profoundly above their academic qualification. Reportedly, these employees were appointed without following the TCP's Service Rules and most of them were relatives of officers of TCP.

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PLP NEWS ALERTS EMAIL No. 166-2014

At the time of regularisation of these 39 temporary employees, the Service Rules were made applicable and academic qualification were examined by GA&HR Division in the light of TCP Service Rules for regularisation of contract employees. The documents of all these employees were scrutinised and it was found that of the 197 employees, 39 employees didn't possess the prescribed qualification for the post they were holding.

However, on November 4, 2011, TCP regularised the services of 197 employees and issued two different office orders No TCP(HR)/14-124/2011 to confirm the contract employees. The first office order was issued for regularisation of 158 employees, who were qualified as per their posts, while some 39 employees were regularised with the condition that a committee will examine their qualification and in accordance with the prescribed TCP rules they will be considered for the post matching with their qualification, in case qualification of these employees didn't conform to their present post.

According to TCP's board decision dated October 28, 2011, the services of some 39 employees were regularised subject to fulfilment of condition of required matching qualification to be assessed/decided by a committee constituted by the BoD. At the time of regularisation, they were also required to produce original certificates/degrees of their educational qualification, original domicile certificate and other relevant documents within a week.

Later, the committee examined the cases of these 39 employees on August 29, 2012 and stated that none of the employees possessed matching qualification for the post held by them as specified in the rules. The committee recommended that the rules may be waived for 6 officers, including Muhammad Asif Rajpar, appointed as Manager, Zafarullah Zanjego Manager, Waheed Gul, appointed as Deputy Manager, Muhammad Waseem Siddiqui Deputy Manager and Muhammad Imran Burhanullah was appointed as Deputy Manager. The remaining should be given such period to fulfil the requirement.

The committee's recommendations were not accepted by the Executive Committee of Board (ECB), but despite this recommendation two Managers Muhammad Asif Rajpar and Zafarullah Zanjego, were promoted as Deputy General Managers (DGMs) on the basis of "capability and suitability," in March 2013. At the time of creation and promotion of DGM, TCP was accused of making illegal promotions on "pick and choose" basis, depriving meritorious senior officials of their right to elevation. Some employees of the TCP, who felt left-out during the promotion spell, registered their written complaints with high officials of the corporation.

Against the promotion to the post of DGM, several representations/legal notices were served on TCP's management and an officer Tariq D Khan moved Sindh High Court. Chairman TCP Rizwan Ahmed shortly after assuming the office in July last year, addressed the issue and the TCP board taking a bold step decided to adjust/revert 39 employees without any 'pressure'.

Two DGMs have been adjusted as assistant managers, some 8 deputy managers have also been adjusted as assistant managers and 10 employees have been reverted as junior assistants and some 9 adjusted as Naib Qasids. Sources said although, presently some of these employees have attained the qualification, but failed to meet the matching qualification at the time of regularisation and took about two years to submit their documents.

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PLP NEWS ALERTS EMAIL No. 166-2014 KPCCI executive committee announces election schedule

July 18, 2014

The executive committee of Khyber-Pakhtunkhwa Chamber of Commerce and Industry announced the election schedule for year 2014-15 here on Thursday. According to the schedule, the elections for executive committee will be held on September 20, while the contest on Presidential seats will be conducted on September 25, 2014. The KPCCI executive committee has given approval for constitution of elections commission, during its meeting, chaired by the chamber President Zahidullah Shinwari, according to which Sufi Bashir Ahmad Durrani, Mohamamd Ishaq and Ziaul Haq Sarhadi are appointed as members of the commission.

The meeting was also attended by vice president Mohamamd Shafiq, executive members Malik Iftikhar Ahmad Awan, Pervez Khattak, Khalid Shahzad, Iqbal Khan, Faiz Rasool, Abidullah, Mohammad Asif Khan, Fazal Wahid, Abdul Qadir Saraf, Qari Gul Salam, Ziaul Haq Sarhadi, Nadeem Rauf, Saddar Gul and Dr Khushal Khan Mohmand. During the meeting, it was decided that the KPCCI election schedule would be posted at website of the chamber following the approval of the executive body, which will also be displayed on notice board in the Chamber House.

The meeting further said the final voters' lists will be displayed by August 21, while nomination papers will be accepted till August 27 up to 12 afternoon timings. The nomination papers could be withdrawn till September 3, 2014. The final list of candidates will be displayed by September 10, while the elections for executive committee will be conducted on September 20, and the name of successful candidates will be announced on the same day. For reserved seat of woman as executive member, the elections will be held on September 22. The nomination papers will be accepted for presidential candidates, by September 23, which will be scrutinised on September 24, and elections on these seats, will be conducted by September 25. The annual general body meeting will be held on September 30, 2014, during which the newly elected president and his rest of cabinet will take oath on the occasion.

July 18, 2014

The Karachi Port handled 50,643 tonnes of cargo comprising 36,485 tonnes of import cargo and 14,158 tonnes of export cargo including 3,871 loaded and empty containers during the last 24 hours ending at 0700 hours on Thursday. The total import cargo of 36,485 tonnes comprised of 28,792 tonnes of containerised cargo; 7,693 tonnes of bulk cargo: 4,157 tonnes of DAP and 3,536 tonnes of soyabean meal.

The total export cargo of 14,158 tonnes comprised of 12,967 tonnes of containerised cargo; 140

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PLP NEWS ALERTS EMAIL No. 166-2014 tonnes of general cargo; 801 tonnes of cement and 250 tonnes of oil/liquid cargo. As many as 3,871 containers comprising 2,360 containers import and 1,511 containers export were handled during the last 24 hours on Thursday. The breakup of imported containers shows 467 of 20's and 908 40's loaded while 25 of 20's and 26 of 40's empty containers, whereas that of exported containers shows 198 of 20's and 336 of 40's loaded containers while 63 of 20's and 289 of 40's empty containers were handled during the business hours.

There were three ships namely MOL Dignity, Oriental Lotus and Gao Cheng-3 carrying containers and oil tankers respectively sailed out to sea during the reported period. There were three vessels viz. APL Denver, UASC Ajman and AS Valentia carrying containers and coal respectively currently at the berths. There were three ships namely APL Denver, UASC Ajman and PAC Aries carrying containers sailed out to sea on Thursday.

There was one vessel viz.Violetta carrying containers due to arrive on Thursday, while six vessels viz. Hyundai Colombo, Wan Hai-508, APL Seattle, EL Gurdabia, Ikan Parang and Morning Margareta carrying containers, oil tanker, coal and vehicles respectively are due to arrive on Friday.

PORT QASIM

A cargo volume of 86,570 tonnes comprising 77,070 tonnes of import cargo and 9,500 tonnes of export cargo inclusive 1,200 loaded and empty containers (TEUs) was handled at Port Qasim during the last 24 hours on Thursday.

The total import cargo of 77,070 tonnes includes 42,500 tonnes of furnace oil; 16,000 tonnes of edible oil; 770 tonnes of chemical; 4,500 tonnes of fertilizer and 13,300 tonnes of containerised cargo. The total export cargo includes 9,500 tonnes of containerised cargo. As many as 1,200 containers comprising 700 containers import and 500 containers export were handled during the last 24 hours on Thursday.

There was one ship namely MT Lahore with oil tanker sailed out sea on Thursday morning, while two more ships namely CV CMA CGM Strauss and MT Au Taurus with containers and edible oil are expected to sail on the same day afternoon. A total number of five vessels viz. CV CMA CGM Strauss, MT Chem Road Vega, MT Au Taurus, MT Lahore and MV Anna Maria currently occupied berths to load/offload containers, palm oil, furnace oil and fertilizer respectively during the last 24 hours. As many as three ships namely Ardmore Centurion, Kuran and Norgas Orinda with palm oil, diesel oil and chemical are currently at the outer anchorage of Port Qasim.

There were five vessels viz. CV Hungo Schulte, CV New Delhi Express, MT Ardmore Centurion, MT Kuran and MV Norgas Orinda with containers, palm oil, diesel oil and chemical expected to take berths at Qasim International Containers Terminal, Engro Vopak Terminal, FOTCO Oil Terminal and Liquid Cargo Terminal respectively on Thursday.

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PLP NEWS ALERTS EMAIL No. 166-2014 AGP files petition against Dar, others

July 18, 2014

WAQAR LILLAH

July 18, 2014

KP Assembly Speaker and Chairman of Public Accounts Committee (PAC) has convened a meeting of the committee on August 11, at Pakhtunkhwa House, Abbottabad. The committee will discuss district audit reports and audit objections of the year 2010-12 in districts Haripur, Battagram, Abbottabad, Kohistan, Mansehra, Shangla and Mardan. The Assembly Secretariat has already informed all members and heads of all concerned departments in written.

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PLP NEWS ALERTS EMAIL No. 166-2014 Cotton and Textiles: Pakistan Prices continue upward march

July 18, 2014

Prices continued upward march on the cotton market on Thursday as ginners were not interested in selling the commodity on the lower rate, dealers said. The official spot rate was up by Rs 50 to Rs 6,100, they added. The prices of seed cotton in Sindh were at Rs 3300-3350 and in Punjab rates were at Rs 3100 and Rs 3300, they said. In the ready session, about 6000 bales of cotton changed hands between Rs 6100-6200, they said.

According to the market sources, different situation has emerged as the ginners were not keen to sell their commodity below the psychological level but on the other hand, the mills and exporters continued buying ahead of Eid-ul-Fitr holidays. It appeared that prices may maintain surge due to persistent demand by buyers and unwilling attitude by the ginners towards selling, cotton analyst, Naseem Usman said.

Reuters adds: ICE cotton eased slightly on Wednesday, giving up earlier gains as traders and speculators continued to sell amid forecasts of plentiful supplies and concerns about dwindling demand, with little mill buying to support prices. More stability in other markets, including corn as relentless selling subsided, provided some relief too, although traders were eyeing the next technical support level at 66 cents.

That would set a fresh two-year low. The benchmark December cotton contract on ICE Futures US settled down 0.11 cent, or 0.2 percent, at 67.64 cents a lb. Volumes were lower than recent sessions, with just under 12,500 lots traded. The following deals were reported: 200 bales of cotton from Matli at Rs 6125, 600 bales from Shahdad Pur at Rs 6150, 1000 bales of cotton from Tando Adam at the same rate, 800 bales from Mir Pur Khas at the equal rate, 600 bales from Kotri at the same rate, 1600 bales from Sanghar at Rs 6150-6175, 200 bales from Sahiwal at Rs 6175, same figure from Mian Chano at the same rate, same number from Burewala at the same rate, 400 bales from Kabir wala at Rs 6200, 200 bales from Arif Wala and 100 bales from Kasowal at the equal amount, dealers said.

======The KCA Official Spot Rate 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 Ex-Gin Upcountry Spot Rate Spot Rate Difference For Price Ex-Karachi Ex. KHI. As Ex-Karachi on 16.07.2014 ======37.324 Kgs 6,100 155 6,255 6,205 +50 ------

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PLP NEWS ALERTS EMAIL No. 166-2014 Equivalent ------40 Kgs 6,537 155 6,692 6,639 +53 ======Scientists discuss cotton seed production plan for 2015

July 18, 2014

Agriculture scientists and seed industry representatives assembled here on Thursday to discuss Cotton Seed Production Plan 2015 to prepare recommendation for production of healthy and good quality cotton seed. The meeting was held as per instructions from ministry of Textile Industry at Central Cotton Research Institute (CCRI) Multan and chaired by CCRI director Syed Sajid Masud Shah, says an official release.

Scientists and seed industry representatives discussed in depth the factors involving production of healthy seed including agronomic practices, present techniques of seed processing, best possible planning for preparation of healthy seed in future, besides implementation of laws relating to seed processing and its certification by federal seed certification department and cotton seed multiplication and purchase.

A set of comprehensive recommendations would be prepared and sent to ministry of textile industry for the purpose of finalising a strategy to produce good quality healthy cotton seed for future cotton crop seasons, CCRI Multan director said. The meeting was attended by Dr Muhammad Iqbal Bandesha from Islamia University Bahawalpur (IUB), Dr Sagheer Ahmad, head of Cotton Research Station Multan, Syed Hassan Raza, Director Neelam Seed Multan, Asif Majeed, MD Kenzo AG Multan, agronomist Dr Shakeel Ahmad from Bahauddin Zakariya University (BZU) Multan, Faisal Hayat from Jalindhar Seed Corporation Rahimyar Khan, Besides, scientists from CCRI Multan.

July 18, 2014

DR ZAFAR HASSAN

With less than two weeks to go before the incoming Eid-ul-Fitr holidays to commence at the end of this month, lint prices have increased due to several mills wanting to build up their inventories before the arrival of extended holidays. Due to relatively lower local prices of lint, some exporters are also in the market to lift some cotton. Therefore, cotton prices are relatively higher by about Rs 75 to Rs 100 per maund (37.32 Kgs).

Though generally the forthcoming cotton crop in Pakistan (August 2014/July 2015) should

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PLP NEWS ALERTS EMAIL No. 166-2014 achieve an output ranging from 13.5 to 14 million bales (155 Kgs) ex-gin and from which about 100,000 bales have already been pressed, mills are projected to need 15 to 15.5 million bales. Exporters may ship from half a million to nearly one million bales. Pakistani mills may need to import from one to 1.5 million bales of cotton during the next season (2014/2015).

The quality of the new cotton crop (2014/2015) arriving from both Sindh and Punjab is generally said to be good. Therefore, though there is an improved uptake of the new crop by the millowners, the cotton prices have become stable because of limited supply available at this time. Even though the new cotton crop is doing well, yarn prices are down.

Due to shortage of gas and power supply to the Punjab textile mills which are shut off for 18 to 10 hours for gas and power respectively everyday, the All Pakistan Textile Mills Association (APTMA) in Punjab has appealed to Prime Minister Nawaz Sharif to remedy the situation urgently at par with other provinces to save the livelyhood of 10 million workers. Desired amount of gas and power supply should be ensured to the textile mills which will cater to the value-added chain of textile sub-sectors and boost the textile exports tremendously.

Seedcotton (Kapas/Phutti) prices of the new crop in Sindh reportedly ranged from Rs 3300 to Rs 3350 per 40 Kgs, while in the Punjab they are said to have ranged from Rs 3100 to Rs 3300 per 40 kilogrammes. Lint prices in Sindh reportedly ranged from Rs 6150 to Rs 6175 per maund (37.32 Kgs), where as in the Punjab they are said to have ranged from Rs 6175 to Rs 6200 per maund in a steady market.

Due to relatively slow arrivals of seedcotton on the eve of the impending Eid holidays, rates of seedcoton have risen recently. Cotton prices could improve further if the middleman takes more active interest in the Mandis (Town Markets) by this investment. In Sindh, 400 bales of cotton from Sanghar, Shahdadpur and Tando Adam sold at Rs 6100/Rs 6150 per maund (37.32 Kgs) each, while 200 bales from Mirpurkhas sold at Rs 6150 per maund.

It is noteworthy that Moody's Investors Service revised the outlook on Pakistan's foreign currency government bond rating to "stable" from the earlier "negative" because of the "stabilization" in the country's external liquidity position. On the global economic and financial front, early this week there was a tendency for the equity markets to keep up their cheerful disposition when Federal Reserve Chair Janet Yellen said that the Federal American Bank would provide assistance to the economy as long as it is needed. However, investors became cautious when she added that valuations of some sectors or assets were "substantially stretched". She particularly pointed out that sections of the economy like smaller firms, social media and biotechnology appeared overvalued.

In the United States, the merger and acquisition activity was boosted on Wall Street edging up the shares prices on last Tuesday. In Great Britain, the FTSE rose to one-week high level because of encouraging growth data from China. China's economy grew by two percent in the second quarter increasing the annual growth to 7.5 percent. Earlier on last Tuesday Germany's DAX index had declined along with other European shares due to reported lack of investor morale. European shares were also pressed lower due to serious concerns over Portugal's Banco Espirito Santo which had reported serious difficulties in its finances. Thus the European bourses were somewhat subdued compared to the multi-year high they had reached in June 2014.

In early morning trade on Thursday, the United States stock futures were reported to have

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PLP NEWS ALERTS EMAIL No. 166-2014 declined though the Dow Jones Industrial Average had reached a record psychological level of 17,000 recently. The reason for this reaction to lower levels by the Dow Jones Industrial Average was given as fall in housing starts and the all round decline in European stocks which slumped due to further sanctions applied to Russia by the United States and few other countries.

Some investors also worried about Federal Reserve Chair Janet Yellen's recent remarks that interest rates in the United States could be increased earlier than what was being hitherto conjectured by the investors. As mentioned earlier, the beginning of home construction in the United States declined unexpectedly in June 2014 to a nine-month low due to a record plunge seen in the southern United States.

Besides the southern flank of the Eurozone which remains historically weak, there are also fears in other parts of the globe like India, Brazil and China which also remain basically mired in a generally depressive state. Thus on Thursday afternoon there was a pronounced decline in many equity markets in Asia-Pacific and Europe with the likelihood that the depressive mood of the bourses would travel across the Atlantic from Europe to the United States futures market.

July 18, 2014

TAHIR AMIN

Briefing the National Assembly Standing Committee on Textile Industry that met with Khawaja Ghulam Rasool Koreja, Secretary Textile Ministry Rukhsana Shah said the country''s overall textile export increased by 3.95 percent in the last fiscal year mainly due to the increase in exports to the EU after getting the GSP plus status. She further said that investment trend in the textile sector declined as compared to other regional countries due to the inconsistent polices on taxes, non-availability of energy, high interest rates and stuck up liquidity on drawbacks and refunds. Textile Minister Abbas Khan Afridi said due to energy crisis some textile mills were closed. In a bid to protect cotton growers, the Textile Minister urged the authorities to fix a minimum support price for cotton like sugar and other items. Under the new proposed textile policy (2014-19) value-added textile sector would be incentivised while no incentives would be given on yarn. He further said that all the incentives to the value-added sector had been ensured through the Finance Bill. According to the policy, textile export would be increased to $26 billion in next five years, besides creating jobs opportunities. The minister said that due importance was also given to value-added sector in the previous policy; however it was not fully implemented. The previous government announced a financial package of Rs 188 billion to implement the policy, but only Rs 28 billion were disbursed.

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PLP NEWS ALERTS EMAIL No. 166-2014 Afridi said that drawback for local taxes and levies would be given to exporters of textile products on Freight on Board (FOB) values of their enhanced exports on an incremental basis if increased beyond 10 percent over previous year''s exports at the rate of four percent on garments, two percent on made-ups and one percent on processed fabric.

July 18, 2014

Textile Ministry has ultimately decided to set up a committee to review Non-Performing Loans (NPLs) of sick units enabling Government to arrange running capital for the genuine sick industries, said Abbas Khan Afridi, Federal Minister for textile industry.

He was talking to a delegation headed by Engr. Suhail Bin Rashid, President Faisalabad Chamber of Commerce and Industry (FCCI) in his office. The Minister said that a new progressive and implement-able textile policy is at the anvil and would be announced within next couple of days. He said main focus of this policy is to resolve the issues and enhance textile exports within the shortest possible time. He said our focus is to make this policy implement-able in its real context.

Commenting on the previous policy he said it is framed in complete disregard to the ground situation and hence it failed to give the required results and rather it further complicated the issues confronted by this important segment of national economy. He said the country is facing energy crisis and textile sector should also realise the gravity of the issue and try to switch over the coal-fired power generation. At this point, President FCCI explained that Government has levied One percent Excise Duty and 17 percent sales tax on imported coal. He demanded that the coal imported for export-oriented textile units should be exempted from all taxes and for it 'no tax, no refund' formulae should be applied.

Regarding NPLs, the Minister said that the Government is convinced for the revival of the sick industries but we want that any incentives decided at the Government level should be reimbursed to the genuine sick units and a strategy should be evolved that no un-genuine person could have

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PLP NEWS ALERTS EMAIL No. 166-2014 access to this facility. He asked President FCCI to nominate dynamic person fully conversant with this issue for this proposed NPL committee so that it could start its operation at the earliest.

President FCCI said most of the Faisalabad units are genuine sick units and they could provide jobs to more than one lac people in addition to bringing much needed additional foreign exchange of US $1 billion per annum, if revived by providing them only working capital. The delegation was comprised of Mian Abdul Manan, MNA, Engr. Suhail Bin Rashid, President FCCI, Mian Muhammad Latif, CEO Chenab Group, Mian Farhan Latif, former President FCCI and Mian Azhar Majid Sheikh of Arzo Textile.

July 18, 2014

Chairman APTMA Punjab S M Tanveer has urged the Federal Finance Minister Ishaq Dar to direct the Federal Board of Revenue (FBR) to meet the deadline of liquidating the sales tax refunds of textile industry by September 2014 in line with his pledge in the budget speech.

He said around Rs 25 billion sales tax refunds of the textile industry are stuck up with the FBR over the period of last six years. On an average, he added, about Rs 50 million of each textile mill is yet payable on account of special excise duty, deferred and current/regular refund claims. Despite the fact that the textile industry is being treated under the reduced rate regime but still heavy amounts of each textile mill are stuck up with the FBR.

Chairman APTMA Punjab said the textile industry is an export-oriented industry, facing acute energy shortage, particularly in Punjab. Majority of mills are operating on two shifts due to the liquidity constraints. Furthermore, he said, the Punjab based textile industry is unable to exploit the potential of market access facility from the EU under the GSP Plus facility, as liquidity as well as energy constraints are hampering textile growth badly. The industry will also not be able to procure cotton ahead due to the prevailing circumstances, therefore, the government should expedite the processing of refund claims of textile industry, he added. Tanveer has appealed to the Chairman FBR to direct the Regional Tax Offices as well as the Large Taxpayer Units to start processing the refund claims in order to meet the deadline of September 2014.

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PLP NEWS ALERTS EMAIL No. 166-2014 Agriculture and Allied: Pakistan Indus, Chenab, Kabul & Jhelum rivers in low flood

July 18, 2014

M RAFIQUE GORAYA

All the four live rivers of the country ie Indus, Chenab, Kabul and Jhelum are in low flood after the first spell of monsoon rains, Flood Forecasting Centre told Business Recorder here on Thursday. It said the River Indus was in low flood at Besham, Tarbela and Kalabagh, the River Chenab was in low flood at Marala and Khanki head-works, the River Kabul was in medium flood at Nowshera and the River Jhelum was in low flood at Mangla dam.

It said the water flow in the River Indus rose to 300,000 cusecs at Besham upstream Tarbela Dam on Thursday against Wednesday's flow of 237,000 cusecs. Similarly water flow rose by 30,000 cusecs in 24 hours in the River Chenab. 68,500 cusecs water is running in the River Kabul at Nowshera and 60,400 cusecs in River Jhelum at Mangla. Punjab Irrigation Canal Regulator Engineer M H Siddiqui told the BR Reporter that the Indus River System Authority (Irsa) was releasing 320,000 cusecs water in the country-wide irrigation canal network against the flow of 500,000 cusecs in the four rivers for sowing and growing Kharif crops including rice, cotton, sugarcane, maize, vegetables, fodder and orchards.

He said after the water flow increase in the River Chenab, the Water Regulatory Body has decreased outflow from the Mangla Dam by 10,000 cusecs to fill the dam to its full capacity of 7.4 MAF water. The authorities have already stored 5.1 MAF water in the upgraded / elevated Mangla Dam that has become the biggest water reservoir of the country over-taking the Tarbela Dam on the mighty Indus.

Siddiqui said water availability for irrigation and hydel power generation had greatly improved. "Punjab is drawing 67,000 cusecs from the Indus zone and 55 cusecs from the Mangla zone to run its canals to their full capacity." He said Sindh province was receiving 187,400 cusecs water at Guddu, 128,400 cusecs at Sukkur and 67,662 cusecs at the Kotri barrage. 27,617 cusecs water is being discharged in the Indus delta downstream the Kotri barrage, he added.

Weather forecast for today: Rain-thundershower associated with gusty winds is expected at scattered places in Kashmir, Punjab including Islamabad, Khyber Pakhtunkhwa, Gilgit-Baltistan while at isolated places in lower Sindh (Karachi, Mirpurkhas, Hyderabad divisions) and Kalat division. Few heavy falls are also expected in Kashmir, Rawalpindi, Gujranwala, Sargodha and Lahore divisions. Few heavy falls are expected in Kashmir, Rawalpindi, Gujranwala, Sargodha and Lahore divisions during next 24 to 36 hours.

Weather past 24 hours: Rain-thundershower associated with gusty winds occurred at scattered places in Kashmir, Punjab, KP and GB, while at isolated places in lower Sindh. Rain fall recorded (in mm): Rawalakot 44, Bhakkar 42, Islamabad (Saidpur 38, ZP 27); Kakul, Bannu, T

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PLP NEWS ALERTS EMAIL No. 166-2014 T Singh each 37; Dir, Chakwal 27; Malamjaba, Sahiwal, D I Khan each 24; Dir, Murree 23; Mangla 21, Balakot 20, Nagerparker 19, Saidu Sharif 17, Peshawar (Civil 17, PAF 05), Lahore (PBO 16,AP 12), Muzaffarabad 15, Rawalpindi (Shamsabad 12, Chaklala 08), Chirat 12, Garhi Dupatta 12, Gujrat 11, Hunza, Gujranwala 09, Parachinar 08, Bunji, Kotli, Risalpur 06, Lower Dir 07, Drosh 05.

July 18, 2014

On Thursday Pakistan Mercantile Exchange (PMEX) value traded was recorded at PKR 3.338 billion. Number of lots traded was 14,382 and PMEX Commodity Index closed at 3,058. Major business was contributed by crude oil amounting to PKR 2,061 million, followed by gold (PKR 1.221 million) and silver (PKR 56 million).

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PLP NEWS ALERTS EMAIL No. 166-2014 Iron ore exploration project: Punjab government, German companies sign accord

July 18, 2014

An agreement was signed between the Punjab government and a consortium of German companies under which the consortium will ensure a high standard of work on the project of iron ore exploration at Chiniot-Rajwa. Secretary Mines and Minerals Dr Arshad Mehmood and Managing Director of the German consortium, GEOS Dr Jurgen Hartsch signed the agreement. Punjab Chief Minister Shahbaz Sharif was the chief guest on the occasion.

The Chief Minister welcomed the agreement signed between the Mineral Company of Punjab government and the consortium of German companies and said that it would help ensure a high standard of work of the iron ore exploration project. He said that Chiniot-Rajwa Iron Ore Project is of vital importance for Pakistan and the iron ore reserves in this area are no less valuable for Pakistan than oil and gold. He said the Punjab is rich in mineral wealth which can be utilised for strengthening national economy. He said that German technology is established in mining as well as other sectors. He said that co-operation with the consortium of German companies in coal mining sector should also be considered. German delegation said, "They are deeply impressed with the style of work of Chief Minister Shahbaz Sharif". Chairman Planning and Development, Secretary Information and other officials concerned were present on the occasion.

Copyright Business Recorder, 2014 Baba & Bhit islands sans basic amenities: PPP government urged to honour its commitments

July 18, 2014

Fishermen of the tiny islands of Keamari on Thursday demanded of PPP-led Sindh government to implement the financial package which the former premier late Benazir Bhutto had pledged two decades ago. The inhabitants of Keamari's Baba and Bhit islands who are deprived of almost all basic amenities hoped that the PPP government would honour the commitments of its late leader.

Islanders told Business Recorder on Thursday that late Bhutto during her second term of office as prime minister during her visit to the islands in 1993 had pledged a financial package to boost up the living of the entire community. However, no measures have, so far, been taken in this regard, they deplored.

The community members said that since long they had been expecting that the Sindh's PPP government would help provide them a financial help under Benazir Income Support Programme

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PLP NEWS ALERTS EMAIL No. 166-2014 but all their hopes have, so far, went in vain. They said that though the community, having a population of around 30,000, solely depend on fishing for their livelihood, the annual ban on fishing in June and July badly affect their income. "We want the government to help us during the ban period by providing our youth with jobs," they demanded.

Claiming that fishing during the ban continues unchecked in other coastal areas of the province, they accused the government of enforcing the ban only on the financially burdened people of the islands. They said the ban leaves fishermen belonging to the tiny islands and other parts of Keamari, Baldia and Shamspir peninsula jobless. They demanded of the government to provide them some alternative source of income during the ban period.

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PLP NEWS ALERTS EMAIL No. 166-2014 Taxation: Pakistan Foreign institutional investors: tax collection through NCCPL mechanism

July 18, 2014

SOHAIL SARFRAZ

The Federal Board of Revenue (FBR) on Thursday said the foreign institutional investors have been brought into tax net and tax will now be collected through the use by National Clearing Company of Pakistan Limited (NCCPL) mechanism as laid down in the Eighth Schedule of the Income Tax Ordinance. According to the FBR''s income tax circular on explanation of Finance Act 2014, the FBR has explained the capital gains on disposal of securities.

By including debt securities in the definition of security in section 37A, the gain/loss on disposal of debt securities shall be computed, collected and paid into national exchequer using the NCCPL''s mechanism as laid down in the Eighth Schedule to the Ordinance, unless opted out with the approval of the Commissioner. However, companies shall not be subjected to this regime [section 100B(2)(d)] and will continue to be taxed as in the past with the rates applicable to companies and not the rates as amended in Division VII of Part I of First Schedule. Individuals, on the other hand, trading debt securities shall be subject to mechanism as laid down in the Eight Schedule to the Ordinance.

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PLP NEWS ALERTS EMAIL No. 166-2014 However, since no Return was being filed, nor was it possible to enforce their returns, foreign institutional investors have been brought into tax net by amending section 100B and tax shall now be collected using NCCPL''s mechanism as laid down in the Eight Schedule to the Ordinance, the FBR added.

July 18, 2014

The Federal Board of Revenue (FBR) has directed the Chief Commissioners of the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to ensure implementation of the Federal Ombudsmen Institutional Reforms Act, 2013 (FOIRA) in cases of mal-administration decided by the Federal Tax Ombudsman (FTO). Sources told Business Recorder here on Thursday that the issue of the FOIRA implementation came to the light at the last meeting of the Chief Commissioner Conference held at the FBR House.

In this regard, Ahmad Dildar, Member (Legal) made a presentation to the conference on the Federal Ombudsmen Institutional Reforms Act, 2013 (FOIRA). It has been decided that field formations should ensure implementation of the Federal Ombudsmen Institutional Reforms Act, 2013 in true letter and sprit in cases of mal-administration by the FTO. According to sources, Directorate General of Intelligence and Investigation Inland Revenue made a presentation on major cases of tax evasion detected by the agency. The FBR has directed the field formations to expedite process of adjudication for recovery of the evaded amount in cases unearthed by the directorate and communicated to the LTUs/RTOs. Directorate General also shared key achievements of the directorates.

The FBR Member Taxpayer Audit made a presentation on the audit performance claiming that 90 percent target has been achieved. The issue of next audit balloting has been discussed during the presentation. The possible percentage for selection of audit was also discussed. The FBR Member IR Operations gave an overall presentation on the budgetary measures for 2014-15. The impact of taxation measures and strategy to meet the target was also part of the presentation of the said Member, sources added.

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PLP NEWS ALERTS EMAIL No. 166-2014 KTBA demands FBR to adopt previous income tax return form with changes

July 18, 2014

Following the introduction of draft income tax return, Karachi Tax Bar Association (KTBA) has demanded Federal Board of Revenue (FBR) to adopt last year's return form with suitable amendments. In a letter sent to FBR, KTBA said that return for tax year 2013 had become user- friendly over the period of five years and taxpayers and practitioners have become used to of it. Therefore, FBR should adopt similar return for current year with necessary changes as required by law.

The letter said that KTBA after detailed discussion on the draft income tax return highlighted some flaws and made some recommendations for FBR, which are as follow: i) For "Agricultural Property*' and "Other Property", instead simple information should be required as the taxpayers and practitioners would be unable to collect the required information in lime and some of the required information is either not familiar or available in some of the provinces and cities of Pakistan. ii) Limit for filing the Wealth Statement for the tax year 2014 should also be made public so to avoid any confusion in this regard.

iii) Balance Sheet should not be part of the Wealth Statement.

iv) Regarding Investment, the details of institution, product and acquisition date cannot be provided by most the taxpayers, therefore, this information should not be included in the return.

v) For Debt (non-business), debtor's name, date and code are also difficult to be provided. Likewise, for Credit (non-business) creditor's name, date and code are also difficult to be provided.

vi) For Motor Vehicles (non-business), engine number, chassis number and registration date is also uncalled for.

vii) For Precious Possession, it is difficult to get this sort of information from the taxpayer.

viii) For Household I fleets, the old information of simple furniture and fixtures should be retained.

ix) For Cash in Hand &.at Bank, unnecessary information needs to be deleted from the form.

x) There is no need to provide the Personal Expenditure in the wealth statement as the same are already part of the return of income. It is merely a duplication here which should be avoided.

xi) Reconciliation provided in last year's wealth statement is to be retained for this year too.

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PLP NEWS ALERTS EMAIL No. 166-2014 Accordingly, the return form emphasises on unnecessary information; duplication in columns; some columns are missing that make taxpayers and practitioners unable to file returns in time.

July 18, 2014

SOHAIL SARFRAZ

The Federal Board of Revenue (FBR) has said that the joint accountholders in banks will be treated as filer if at least one person in the joint account is a filer of income tax return. While clarifying a query raised by banking sector through an income tax circular issued here on Thursday, the FBR has said that in case a joint account is held in a bank by more than one person, joint accountholders as an entity shall he treated as filer if at least one person in the joint account is a filer.

Similarly, in case an account is held in a bank in the name of a minor, the minor shall deemed to be filer if the parent, guardian or any person who has made deposits in the minor's account is filer. The FBR has further explained the dividend and profit on debt for non-filers [Section 150,151 read with Division I and IA, Part III of the First Schedule].

As per Paragraph (b), Division III, Part I of the First Schedule, the rate of tax on dividend is 10 percent. However, through the Finance Act, 20l 4, the rate of advance tax to be deducted under section 150 is 15 percent for non-filers. This means that in the ease of non-filers, advance tax shall be deducted @ 15 percent but the rate of tax on dividend, at the time of filing of return shall be 10 percent. The additional 5 percent tax for a non-filer shall be adjustable against the total income for the year, at the time of filing of return.

Regarding profit on debt, as per sub-section (3) of section 151, the rate of tax deductible on profit on debt was final for a taxpayer other than a company. Through the Finance Act 2014, a proviso has been added after sub-section (3) making tax deductible for a filer as final tax @ 10 percent of yield or profit, and 15 percent for a non-filer with yield or profit exceeding Rs 500,000. However, in order to attract the non-flier to file return, the additional 5 percent tax for a non-filer shall be adjustable against the total income for the year, the FBR added.

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PLP NEWS ALERTS EMAIL No. 166-2014 Mutual fund industry: rate of tax deduction for dividends to be 25 percent

July 18, 2014

The Federal Board of Revenue (FBR) has informed the mutual fund industry that from Tax Year 2014 in case of companies the rate of tax deduction for dividends distributed by mutual funds other than stock funds will be 25 percent. Through an income tax circular issued here on Thursday, the FBR has explained amendments made to Mutual Funds Taxation Regime under Finance Act 2014.

The FBR said that the income of mutual funds is exempt from income tax under clause (99) of Part I of Second Schedule to the Income Tax Ordinance, 2001, subject to the condition that 90 percent of their income is distributed to the unit holders. However, income distributed, ie, dividend income, is not exempt in the hands of the unit holders (except those specifically provided under the law). Mutual funds are therefore, required to deduct withholding tax at the time of distribution of dividend income. To avoid the legal obligation to withhold tax on dividend income, open-ended Mutual Funds, had recently adopted a practice of issuing bonus units instead of cash dividend. No tax was deducted on the said issuance and when the said units were disposed of by the unit holders, even capital gains tax was not paid because of FIFO and cost staggering rules.

Through Finance Act, 2014 the said anomaly has been removed by amending clause (99), and from now onwards, to claim exemption under the said clause, bonus shares, bonus units or certificates shall not be considered for the purpose of computing ninety per cent distribution of income. In other words, to claim exemption, ninety per cent of the income must be distributed in the form of cash dividend.

Another amendment in taxation regime of mutual Funds relate to tax deduction on dividend income distributed by them to the unit holders. At present taxpayers can earn income from bank deposits, Government Securities, capital gains, dividend, etc, either directly or through mutual funds. However, if earned through mutual funds, its class or character changes to dividend income for all categories, despite the fact that mutual funds are only pass-through entities. As a result, the rate as applicable to dividend is applied on the income distributed instead of respective rates for different heads/classes of income.

For example if a company invests directly in government securities, it will be taxed at a rate of 33 percent on interest income earned. However, if the same investment is routed through mutual funds, the company will be taxed at a rate of 10 percent on the same income characterized as dividend income distributed by the mutual funds. In order to bring tax neutrality in tax system and to discourage such tax avoidance tools, the rates for dividend income distributed by mutual funds have been amended accordingly. From tax year 2014 and onwards, in case of companies the rate of tax deduction for dividends distributed by mutual funds other than stock funds shall he 25 percent. Stock Funds have also been defined through Finance Act, 2014 as collective investment scheme or mutual fund where investible funds are invested by way of equity shares in companies to the extent of 70 percent of the investment. For stock funds the rate shall be 10 percent (if dividend receipts are more than capital gains receipts) or 12.5 percent (if receipts from

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PLP NEWS ALERTS EMAIL No. 166-2014 capital gains are more than dividend received). For individuals, since the rate of dividend and interest income is both 10 percent, the rate of 25 percent applicable to companies shall not apply. However, in case of stock funds where capital gains receipts are higher than dividend receipts, the rate shall be l2.5 percent for individuals as well, the FBR added.

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PLP NEWS ALERTS EMAIL No. 166-2014 Taxation: World Obama wants to crack down on US firms' tax inversions

July 18, 2014

US multinational companies are increasingly seeking to reincorporate overseas through mergers and acquisitions to escape US taxes, raising concerns for the Obama administration. "It's the height of economic absurdity but most of all it's symptomatic of the difficulties of the American tax system," said Pascal Saint-Amans, head of the tax division at the Organisation for Economic Cooperation and Development, in an interview.

The process, called a corporate, or tax, "inversion", is based on a simple, legal principle: A company buys a foreign company and restructures to move its tax domicile to a lower-taxed foreign country. The company typically keeps its management and activities in the United States, benefiting from US government-funded infrastructure, research and development, and other advantages.

"It's the most blatant tax-dodging technique," Frank Clemente, executive director of Americans for Tax Fairness, told AFP. Heavyweights in the pharmaceutical industry, like medical device maker Medtronic, and fruit and vegetable giant Chiquita Brands are preparing to reincorporate in Ireland where corporate tax rates of 12.5 percent are almost a third less than the US rate of 35 percent.

Pfizer, the world's largest drug maker, and rival AbbVie recently have added their names to the list of companies looking to shift their headquarters to a more advantageous tax system. Drug- store chain Walgreen also is weighing a tax inversion. Generic drug maker Mylan joined the inversion wave on Monday, unveiling a deal to buy Abbott Laboratories's non-US developed markets business and transfer the combined company's domicile to the Netherlands. The head of Mylan defended the strategy - which could reduce the company's tax rate from 35 percent to 21 percent - in the name of global competitiveness amid a "flawed" US tax system.

July 18, 2014

Australia on Thursday axed a divisive carbon tax after years of vexed political debate, in a move criticised as regressive and out of step with the rest of the world. The upper house Senate voted 39-32 to scrap the charge, which was imposed by the former Labor government on major polluters from 2012 in a bid to reduce greenhouse gas emissions.

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PLP NEWS ALERTS EMAIL No. 166-2014 It followed days of protracted negotiations with the minor Palmer United Party, which embarrassed the government last week by pulling its crucial support for repeal of the tax at the last minute. Power-broker Clive Palmer backed the legislation after winning concessions for tougher measures to ensure cuts to electricity and gas prices were passed through to consumers and businesses.

Prime Minister Tony Abbott went to the polls in September with repealing the pollution levy as a central campaign platform, arguing the cost was being passed to consumers, resulting in higher utility bills. "Scrapping the carbon tax is a foundation of the government's economic action strategy," said Abbott, who once said evidence blaming mankind for climate change was "absolute crap".

"A useless, destructive tax which damaged jobs, which hurt families' cost of living and which didn't actually help the environment is finally gone," he added. The government must walk a tightrope in the upper house, needing the backing of minor party senators such as those from Palmer's party to get its legislative agenda passed if it cannot secure support from Labor or the Greens. This includes not only scrapping the carbon tax but the massive spending cuts it has planned to bring the budget under control. EU Climate Action Commissioner Connie Hedegaard said the move was regressive.

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PLP NEWS ALERTS EMAIL No. 166-2014 Fuel and Energy: Pakistan Efforts on to overcome energy crisis: 'people won't be hoodwinked through hollow slogans'

July 18, 2014

Provincial Parliamentary Secretary on Information and PML-N leader Rana Muhammad Arshad has said that 1,000 megawatt electricity will be generated from Neelum Jhelum project by 2016. "No one will be allowed negative politics, as the nation has given mandate to PML-N for resolving its problems," he said, adding the government was making efforts for overcoming energy crisis.

He said Lahore Metro Bus project had been completed in a record time and such projects would be completed in Karachi. Rana Arshad said the dreams of those having agenda of revolution would never materialise and no one would be allowed to create hindrance in the development process.

He said the country was facing energy crisis and terrorism therefore all political parties should strengthen democracy. He said the government was making efforts for overcoming energy crisis with the co-operation of China and other countries, adding that people would not be hoodwinked through hollow slogans.

July 18, 2014

ABDUL RASHEED AZAD

Following an effective methodology adopted by the government, exploration and production (E&P) companies have restarted oil and gas exploration activities in the militancy-infested Kohlu-Dera Bugti area of Balochistan. The government has of late adopted an effective strategy to tap Pakistan''s biggest gas reserves of about 22 Trillion Cubic Feet (TCF) in the Kohlu-Dera Bugti area of Balochistan, which have the potential commercial value of $110 billion and realistic value of $77 billion and will last for 100 years.

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PLP NEWS ALERTS EMAIL No. 166-2014 operation on August 26, 2006," a senior government official told Business Recorder here on Thursday.

OGDCL had constructed an 80-kilometer long road which connected Kup -a far-flung area of Kohlu- with the main highway to start the exploration activities in the area, official said and added that Prime Minister Nawaz Sharif is personally monitoring the situation and has directed the OGDCL and other companies to materialise these projects as early as possible. For the exploration activities, the government has not only engaged local politicians and tribal leaders but has also started a number of health, education, socio-economic projects for welfare of the locals.

July 18, 2014

Consequent to Zuhair Siddiqui's resignation from the office of Managing Director, Sui Southern Gas Company, the Ministry of Petroleum and Natural Resources has appointed Shoaib Warsi as the new MD of the company. The notification of Warsi's appointment was issued by the Ministry on Thursday after the former MD submitted his resignation on personal grounds after leading the organisation for around two years.

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PLP NEWS ALERTS EMAIL No. 166-2014 Shoaib Warsi brings in high level of professional experience as his marathon association with the gas utility spans over 37 years, mainly with company's Distribution and Transmission divisions spread over its franchise areas of Sindh and Balochistan. Having completed his MS in Environmental Engineering from NED University and BE (Mechanical) from Sindh University Jamshoro, he came into the folds of SSGC in 1977 as trainee engineer.

Over the years he made his way up the organizational cadres and went on to serve as GM (Distribution), SGM (Distribution-North), SGM (Unaccounted-for-Gas) and last served as Senior General Manager (Transmission). Warsi has been largely attributed in company's accomplishments in design and construction of a number of strategically important pipeline network projects, system reinforcement, pipeline rehabilitation schemes, Town Border Stations (TBSs) and Customer Meter Stations (CMSs).-PR

July 18, 2014

Pesco is facing approximately Rs 3 billion loss per month due to power theft. Pesco has launched again a campaign against power theft, seeking public co-operation. Pesco has installed a toll free phone number at Pesco HQ Wapda House Peshawar to curb the electricity theft. Hasan Fazil Chief Engineer O&M (Distribution) Pesco remarked during a weekly briefing to Radio Pakistan on Thursday, according to a press release issued here.

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PLP NEWS ALERTS EMAIL No. 166-2014 "Due to the high demand across Pakistan, the major difficulty we are facing is the shortfall of electricity. The National Power Control Centre is located in Islamabad, it distributes the available load throughout the country, and we have to manage the electricity according to our quota. But electricity theft and misuse have become our biggest concern which is the cause of the overloading of feeders and lines.

The provincial government has dedicated three police stations to Pesco in Peshawar, Charssada and Bannu, which, of course, is a historical achievement on our part." Police have registered 1900 FIRs against culprits.' About energy conservation, he said, "Students' energy conservation drive is one of the best initiatives taken by Pesco. This is the most economical way of saving electricity across the country. We have launched an awareness campaign on energy conservation at the beginning of this year. The objective of this campaign is to create awareness amongst the public, especially younger generation about the prevailing energy shortfall and motivate them towards conservation habits so that they become agents for change in the future. Our teams have visited a lot of schools and we are receiving positive response.'

The weekly radio briefing is the part of Pesco's campaign to educate its consumers about power sector issues and recent developments. Customers were requested to extend maximum co- operation to bring power theft under control of law. For seeking customer co-operation, Pesco has installed a toll free phone (0800 29999) to register the reports on electricity theft.

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PLP NEWS ALERTS EMAIL No. 166-2014 Fuel and Energy: World US crude gains $2 on demand expectations

July 18, 2014

US crude oil jumped by as much as $2 Thursday after a Malaysian airliner crashed over eastern Ukraine on the heels of fresh US sanctions on Russia that had raised geopolitical concerns. Prices were also buoyed by the prospect of increased European demand for refined products from the United States.

A Malaysian airliner was brought down over eastern Ukraine on Thursday, killing all 295 people aboard and sharply raising the stakes in a conflict between Kiev and pro-Moscow rebels, in which Russia and the West back opposing sides. "The market could be seeing increased tensions between Russia, the European Union and the US," said Andy Lipow, president of Lipow Oil Associates in Houston, Texas. That could mean increased exports of diesel fuel from the US Gulf to Europe, said Carl Larry, chief executive of consultancy Oil Outlooks in Houston, Texas.

"Our export market is going to benefit from any interruption of Russian refining. The thinking here is that we're going to have to make up some of the lost production that's going to Europe." US crude rose for a second straight session, gaining $1.98 to $103.18 per barrel by 2:20 pm EDT (1820 GMT) heading toward its strongest showing since mid-June and its largest two-day climb since April.

Brent for September, which became the front-month contract on Thursday, rose by 72 cents to $107.89. On Wednesday, US crude gained $1.24 after US government data showed that rising US refining activity caused crude stocks to fall by 7.5 million barrels last week, the biggest draw since January and larger than the 2.1 million drawdown forecast by analysts.

Geopolitical tensions are on the rise over Ukraine, with the United States imposing sanctions on some of Russia's biggest firms for the first time, including Rosneft, Russia's largest oil producer. Continued worries about the timing of exports from Libya and unrest in Iraq also underpinned the rise in Brent crude oil prices. Oil prices had been in a downward trend since Brent hit a nine- month high of $115.71 on June 19 after Islamist insurgents took control of swathes of northern and eastern Iraq.

Fighting has continued, but initial fears that it would have a large impact on the country's oil exports have eased. Iraq's southern oilfields are set to export 2.6 million barrels per day (bpd) in July, the same as May and the highest since 2003. In Libya, oil exports through its two largest eastern ports, capable of shipping 500,000 bpd, will not start before August, an official said on Wednesday.

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PLP NEWS ALERTS EMAIL No. 166-2014 Banking & Finance Foreign reserves stand at US$14,513.6mn

Thursday, 17 July 2014 17:56

Posted by Imaduddin

KARACHI: The total liquid foreign reserves of the country stood at US$14,513.6 million on July 11, said the State Bank of Pakistan (SBP) on Thursday.

According to a SBP press release, the foreign reserves held by the SBP are US$ 9,485.8 million, while the net foreign reserves held by banks are US$ 5,027.8 million.

During the week ending July 11, SBP's Liquid Foreign Reserves decreased by US$116 million to US$9,486 million compared to US$9,602 million in the previous week.

During the same week, the SBP made payments of US$31 million on account of external debt servicing and other official payments. While during the same period the SBP received US$22 million from multinational and bilateral sources.

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PLP NEWS ALERTS EMAIL No. 166-2014 BR Research: All Whats next for the stock market?

July 18, 2014

BR Research

July 17, 2014, would go down in history as the day when KSE-100 finally crossed the 30,000 mark. A healthy gain of 400 points in a single day helped the index to close at an all time high of 30,177 points, taking CY14 to date return to 19 percent.

While the benchmarks journey from 20,000 (last year) to 27,000 points (hit in January 2014) was phenomenal, its pace decelerated thereafter, leading up to a formidable resistance after 29,000 points. The journey of last 1,000 points, from 29K to 30K, has possibly been one of the most difficult to break psychological barriers. And the reasons behind that were obvious: pre-budget jitters and growing political uncertainty.

With the budget out of the scene, one expected the market to resume its upward trajectory. But that didn happen as uncertainty on the political front compelled the investors to stay on the sidelines. Meanwhile, the combination of Ramazan and FIFA World Cup kept volumes low.

So what changed yesterday? Well, if you were to believe market participants, KSEs rise yesterday came on the back of the news of upgrade in Pakistani banks rating by Moodys. Traders also say that the commencement of result reason also fuelled investor sentiments, where the market expects cement companies to be the major gainers on the back of rising profitability. Compared to the average trading volume of 70 million seen between Monday-Wednesday this week, yesterdays volumes more than doubled to 152 million. But, herein is the catch.

Yesterdays trading volumes may have increased substantially over the preceding few sessions, it is still not enough to develop a momentum and push the index forward.

Plus, the fact that yesterdays volumes leaders were essentially small caps, the thrust is still missing. Keep also in mind that if were really because of Moodys ratings on banks, then at least some banks should have caught healthy attention in terms of volumes.

So, we asked market pundits again, what triggered this acceleration when the political noise is still prevailing?

"Political clamor is part of democracy and it always keeps on lingering. Keeping that aside, a cheap price-to-earnings ratio of close to 8 times is what is luring foreign investors to invest in Pakistan.

And Moodys up-gradation has further sugar-coated the case", Muhammad Sohail, Director, Karachi Stock Exchange, told BR Research. Brokers and analyst community is now eyeing an index level as high as 35,000 by December 2014.

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PLP NEWS ALERTS EMAIL No. 166-2014 While this column respects Sohails opinions and overall hopes of 35,000 points, the kind of political mayhem that is feared to gather steam come August 14 may trump all such hopes, which is why technical charts suggest that the current spike market will likely lose steam around 30,500-600-- following which uncertain behaviour will likely prevail until October. For those investors who had been sitting on the sidelines, waiting for a breakout, this is not your moment. Coal power project - Luckys new charm?

July 18, 2014

BR Research

At first it might seem like jumping on the coal-power bandwagon, but it is fascinating to realise how apt is investing in a coal-based power plant for Lucky Cement.

Yunus Brothers have planned to invest $200 million in a 660MW coal-based power plant in Karachi. A wholly owned subsidiary of Lucky Holding Limited (LHL) by the name Lucky Electric Power Company Limited will be set up, which will also be an indirect subsidiary of Lucky Cement. With a total cost of $1.08 billion, the project will have a debt to equity ratio of 75:25. Lucky cement will make investment in it LHL, which will then raise the required debt for the project. At present, it is expected that the projects will start production sometime after 2019.

How appropriate is this project for Lucky Cement? Apart from setting up a plant close the port which is of great significance here, it must also be noted that Lucky Cement is the largest importer of coal in the country. And since it is already using coal as a source of fuel for it cement business, the coal-power plant will benefit largely from the synergies created as a result.

Secondly, the project offers an attractive 20 percent dollar-based IRR; the firms growth and profitability has made it one of the least leveraged companies in the cement industry, and thus rich in cash. Talking to BR Research, Mohammad Ali Amin of KASB Securities Limited points out with a modest debt to equity ratio at present, the new coal-power plant will increase the companys leverage; but, only to manageable levels for a company that is high on margins and cash.

Also, the investment in coal-power plant reduces the cement sector vulnerabilities; even though the firm has the ability to enter into a power plant and expand its cement footprints at the same time, it is being anticipated that the firm will not be adding any new capacity anytime soon after the approval of the coal-power project. This reduces the chances of some frequent occurrences in the cement industry: price wars and swelling up of the debt to equity ratio.

Lucky Cements share price has increased by 30 percent since January 2014 compared to 16 percent growth in KSE100 index. And besides its cement business growth, and the ICI turnaround story, investment in coal-based power generation has its share in the recent uptick.

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PLP NEWS ALERTS EMAIL No. 166-2014 PIB yields signal status quo

July 18, 2014

A willing borrower, an even more willing lender--good rates ought to be the product. This is what the PIB story has been of late. The most recent auction result threw a few surprises though, both in terms of participation and the yields. For the first time in 2014, the target was missed and that too, considerably, as government accepted bids worth only Rs56 billion.

The cut-off yield escalated considerably by 29 bps in the three-year papers-the highest jump in six previous auctions. The participation was also well spread this time around with three-year papers making 56 percent, unlike recent average of 80 percent share. Market participants have attributed the subdued activity to some liquidity shortage.

But, what is incredible is the governments willingness to continue borrowing at such hefty rates. Yes, they have been asked to improve the maturity profile by the bosses, and it is good to have a longer-term yield curve. But at what cost one may ask. "It seems the government is playing in the hands of the banks....they are being dictated by banks, which does not make sense," said a puzzled treasury manager, ironically from a leading bank. That he didn want to be named should not be surprising.

There is some sense in the argument, especially when the raised amount is not massive, the government could have instead opted to reject the bids. The monetary policy is due tomorrow, and the yield upward movement, offers signals enough, where is the train heading. There is surely no rate cut in sight for this time at least.

But, what is the rationale for continuously borrowing at such rates, when in fact the government itself has broadly given signals of rate cut and slowdown in inflation. The banks are not the ones complaining, as there is hardly a better and safer parking lot available. Should this continue, the private sector may soon start complaining though: if their pie shrinks.

The ADRs are sure to take a huge dip, especially after nearly Rs2 trillion parked in PIBs during 2H FY14. Even if the interest rates do go down, it would be merry time for banks. No wonder, accepting bids at such high rates has puzzled many in the market. Ready, steady, cook!

July 18, 2014

BR Research

This Ramazan, it is tough to escape the comfort of removing the box from the freezer, throwing food into the frying pan, for an instantly-served hot Iftar that entails no real cooking. When life gets busy, the frozen entrée can avoid you the stress in the kitchen and precious time.

According to the Pakistan Food and Drink Report Q3 2014 by Business Monitor International, Pakistans per capita food consumption growth rate is 10.1 percent year on year in 2014 and is

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PLP NEWS ALERTS EMAIL No. 166-2014 projected to expand at a CAGR of 9.9 percent from 2013 to 2018.

By tradition, Pakistani women prefer preparing food at home from scratch. But, in modern and upper-class areas, the market for meal solutions, like readymade meals and frozen processed food is rising as they are a quick-fix meal solution compared to Pakistani food with its lengthy preparation time and complicated cooking process.

Moreover, frozen processed food has witnessed the fastest growth attributing to increasing urbanization, rising number of working women and the emergence of advanced cold storage facilities. Growth is also due to initiatives being undertaken by firms with the aim of educating consumers that packaged food or frozen food is more hygienic and healthier as compared to the unhygienic food from roadside stalls and dirty markets.

As per industry analysts, K&Ns Foods (Pvt) Ltd enjoys the biggest slice of the frozen processed food market, with Seasons Foods striving to obtain a strong footing. Dawn Foods has by now built its manifestation in the frozen processed food division also. While as per Euromonitor International, in 2013, Quick Food Industries is projected to enhance sales with a retail value share of 15 percent, followed by ST Food Industries (10 percent). Along with new players like Sufi foods arriving the arena amidst a surge in demand for frozen food.

Flailing economy and food inflation are likely to constrict the growth of packaged and frozen food in Pakistan. Companies are looking for ways to maintain stable prices. Manufacturers are buying agricultural commodities ahead of time and in bulk, hoarding them to hedge against the possibilities of surges in agricultural and meat prices.

Some of the processed food producers have their own branded freezers and one-stop outlets. But others rents facilities from a third-party. The cost of electricity and immense load shedding has caused a decline in purchases by the take-home segment. Thus, the low sales returns from retailers have restrained them to keep freezers constricting bottom line of the frozen food industry.

Furthermore, the swelling cost of production in terms of both raw material and energy are grave worries for producers. These are eventually passed on to end-consumer, steering to rise in unit prices. This has triggered in a slowdown of growth of the industry.

Pakistans population is increasing fast. Riding strong on propitious demography and with government support and private sector participation, there are still significant investment opportunities available in the frozen food processing sector.

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PLP NEWS ALERTS EMAIL No. 166-2014 Brief Recordings 'Starting to listen to businesses is also a reform'

July 18, 2014

Below are selected excerpts from BR Research's sit-down with the President, Islamabad Chamber of Commerce and Industry:

BR Research: Could you tell us a bit about the composition of Islamabad Chamber of Commerce and Industry (ICCI), and what kind of advocacy are you aiming to do?

Shaban Khalid: About 60-70 percent of our members are SMEs, with a large representation of traders and the rest comprise of local industry followed by multinationals. Industrial concerns include steel, flour, marble, pharmaceutical, soap, and light engineering among others, and the service industry is represented by organisations that include oil and gas, telecommunication and IT. This area does not have much of a very large agriculture base and exports remain nominal.

ICCI remains apolitical and that is why we feel we deal matters differently to most of the chambers. Between a large number of SMEs and the strong industry members, the clout gets evened out. In fact, the representation of the two--trade and industry--in the executive body is almost equal. Both trade and industry work hand in glove with each other.

We want to do advocacy that is backed by research, real numbers and figures. Our budgetary recommendations and advocacy this year remained an extensive exercise and gained outstanding results and we were able to bring almost all Chambers from across Pakistan together and putting aside any differences. During my term, we are trying to get into result-oriented research, and we have taken up a few projects. We'll focus more on industry, and then go to the trade because that is a big area.

One of our key achievements is our recognition of the role of youth in our country. We formed the first youth initiative by any chamber in Pakistan called the Young Entrepreneurs Forum (YEF).

BRR: What kind of a research is the ICCI interested in?

SK: We want to go out and see what industries exist and what kind of work they are doing, so we may be able to do a needs' assessment. We are also interested in finding out the current volume of export-related business and the export potential in this area. Trade and industry is our forte, but we also need to ascertain the agriculture potential of surrounding areas of Islamabad. We remain cognisant that Pakistan is primarily an agrarian economy, which consumes about 44% of our workforce.

We also want to have an elaborate database of businesses in and around Islamabad so that we can increase their chamber participation and disseminate information that may be relevant and

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PLP NEWS ALERTS EMAIL No. 166-2014 helpful to them. There is a need to engage and enhance capacity of businesses through trainings, seminars, international fairs, exhibitions, etc. Sitting in Islamabad, the capital, ICCI can open up a lot of opportunities for its members. There are both government and donor organisations that have these training programs, but local businesses do not know of them. With such an elaborate database of businesses, these opportunities can be utilised more efficiently.

BRR: Please tell us about the Young Entrepreneur Forum?

SK: This program reaches out to students, primarily at university level, and tries to encourage a mindset change to be entrepreneurial and become job creators rather than job-seekers. We started this program around 2007, when the National Youth Policy was being announced. Last year, we had this huge Indo-Pak bilateral event where about 25 young entrepreneurs attended from India. These young business men and women went back with very positive image of Pakistan, and saw a huge potential of bilateral relations between both countries, including better and peaceful ties. At the end of this year, we will host a Commonwealth young entrepreneur event, and are expecting around 100 international delegates.

BRR: What have been the outcomes so far?

SK: Our aim is to inculcate the spirit of entrepreneurship among the youth and assist them, and we keep building on it. Now we are making a program to go out to low-income schools and try and teach them about the basics of entrepreneurship over a two-day course. We are also working with the HEC to develop a new curriculum to promote entrepreneurship development in public sector colleges and universities. HEC is now funding and housing Technology Incubation Centers (TICs) throughout Pakistani universities. These TICs may be missing the industry linkages and technical connections. We can always connect these TICs with the relevant industry experts that are our members. Among other sectors, we have a strong IT base in Islamabad. We are also trying to develop an in-house incubation center.

BRR: What is the thought process behind that incubation center?

SK: We already have an entrepreneurship development center. But that only goes as far. So now we want to incubate start-ups and connect them directly to the industry. From taxation to business registration issues, we can link the start-ups with the relevant people. What a chamber can do in this context, a university may have difficulty in doing that, as all the relevant expertise is available under one roof at the Chamber. What we can do is not provide the seed funding, but connect the start-ups to funds. Once we have this story here and we can monitor the success rate, we can recommend them to the funding sources. Also, if we nurture a start-up here, with our industrial connections and experiences, their chances of survival are better. They can always come back to the chamber after graduation from the incubator. We will have different experts assessing the performance on quarterly basis and our decision to incubate them further will depend on that evaluation.

A chamber's task is advocacy. But the quality of new businesses coming up also has to improve. Islamabad-based businesses must change their ways through adopting technology applications. That's what is at the heart of YEF and incubation center and our trainings. We also invite students to chamber meetings. Just being here may also be a lot of learning.

BRR: What is the quality of current advocacy?

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PLP NEWS ALERTS EMAIL No. 166-2014

SK: We have improved a lot. Previously, it used to be mere talking points. Now we go out after we dig out facts and then base our opinions on those facts. From now on, our advocacy will increasingly be more research-based and focused on macro issues rather than day-to-day firefighting. Agriculture potential in the area, diesel engine and fuel and energy conservation, and entrepreneurship are the three things that will remain the ICCI's focus.

One of the other things that we are strongly advocating for is the country to become a manufacturing hub rather than a trading hub. Right now, the cost of doing business in Pakistan on its own discourages manufacturing, which pushes businesses into trading. For instance, one can import LED bulb and energy saving equipment--important for energy conservation--duty- free. But, if one wants to manufacture these things here, there is duty on all the components.

To sustain the population of Pakistan, it is absolutely critical that we create more jobs for the people, and manufacturing is the only way to create employment in such numbers.

BRR: What is the diesel engine conversion advocacy about?

SK: We are currently advocating how the compliance of latest diesel technology and standards for low-sulfur diesel fuel will benefit the country. Pakistan currently has low standards for diesel fuel or diesel engine manufacturing. About 94% inland freight and oil transportation is through diesel trucks, as railways and pipelines have a very low share. We are advocating for a low- sulfur diesel technology in Pakistan because it will save about 30-40 percent of diesel consumption, which in turn will bring down transportation costs, import bill, and ease the environmental concerns.

We are going to table this in the parliament through our local parliamentarian. Refineries should adopt new plants and machineries to produce low-sulfur diesel. We feel that the transport sector needs three to four years to phase out this current model diesel engine and fuel production.

BRR: It's been over a year since the PML-N government came to office. Have you noticed any visible change in how this administration facilitates businesses compared to previous one?

SK: It will take fundamental and structural changes for things to change at the lower level. The machinery that is stuck in their old ways of doing things is creating bottlenecks for good things that are ordered from the top. Even if the top remains clean, but the bottom, maybe, resisting change. We are seeing better action on our genuine issues. The government could do a better job at being authoritative, but I think they also have to run the government machinery.

There are certain very good proposals from the business community that the government has incorporated in the budget. There was a lengthy exercise that went on for two weeks, with the finance minister and his team discussing issues and proposals with nearly all the industry associations. That's a good start. Improvement will come along after trial and error. At least, the vision seems right.

It seems that this government wants to take the country forward. But we also need to understand that this government took over at a time of grave crises. They want to initiate reforms, but they are in such a fix that they are preoccupied with revenue generation and the energy crises. The country needs to improve revenues, and the business community, including ICCI remains

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PLP NEWS ALERTS EMAIL No. 166-2014 facilitative in meaningful measures.

I personally think that starting to listen to the business community is also a reform process.

BRR: What are your views on the new tax on retailers, one that is based on electricity consumption?

SK: The business community had actually recommended that measure. The industry has come to this understanding if they themselves don't agree to increase the tax net; the tax burden would continue to increase on the existing tax payers only. The ICCI conducted a thorough pre-budget exercise across 50 big and small markets of Islamabad on ways to expand the tax net. About 90 percent of the traders were willing to pay taxes but they were wary of taxman harassment.

Also, one has to understand that most of the small businesses do not have any accountancy standards that they follow, and neither do they have the capacity at present. They wanted the guarantee that they should not be manipulated after entering any scheme. They agreed on a mechanism that would give no opportunity for the taxman to be able to harass them while being able to pay some amount in taxes.

BRR: This tax scheme belittles the value and utility of documentation. What is your take on this?

SK: We need to understand that there is no tax culture among traders, and it has been absent for decades now. Small traders do not even have proper documentation and/or accountancy skills. They may not be able to afford a consultant to do their taxes. They also completely refute the idea that tax collector should come to their shops. That's why the government eventually took a political solution. I have interacted with many retailers. The ICCI has even campaigned for tax return filing that was targeted at small shops.

You have to start from somewhere, however small. You can get the opportunity to document later on in three to four years. It's not going to happen overnight, and neither should the government remain under any illusion that they will be able to change their old habits overnight. But for it to happen, the government really has to also improve FBR's capacity and transparency to collect taxes.

There has to be political will for all this. We have been advocating that FBR must use technology-based solutions to reduce interaction between tax payer and tax collector, and reduce personalised or discretionary powers of the tax collector. Such measures will go a long way in reducing the trust gap on both sides. Also a process of accountability needs to be initiated with in FBR.

BRR: Don't you think this retail tax will be inflationary as retailers would pass on the tax impact?

SK: This is going to be least inflationary, if at all. The impact will be very minimal if any. Someone with a Rs 20,000 electricity bill and Rs 1,000 tax ticket on it will not see the utility in passing on the small impact on prices.

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PLP NEWS ALERTS EMAIL No. 166-2014 Crime Records 'Hideout' near Prime Minister's Raiwind house raided, 2 militants killed

July 18, 2014

HAMID NAWAZ

Two terrorists were killed during a 10-hour fierce battle between security forces and suspected militants on Raiwind Road near the residence of Prime Minister Mian Nawaz Sharif. An elite force officers, Sabir Husain, embraced martyrdom. Police clashed with suspected militants at 2am when it started a search operation in Arayian village on Raiwind Road. The suspected militants equipped with heavy weaponry, including grenades, rocket launchers and explosive devices, opened fire on security forces from inside a house.

They fired at members of police and rangers present in the area and injured some of them. Security officers used megaphones to communicate with the suspected militants. Police also urged residents of the area to remain inside their houses. The security forces retaliated and later entered the building to overpower the attackers. Security forces lobbed hand grenades and tear gas shells on the house as they prepared to enter the building. One of the attackers died inside the house, while the other was taken into custody. However, he also died on way to hospital.

The dead militants have been identified as Ahsan Mehmood other Sahid of Okara. Their accomplices Aashiq, Zulfiqar, Aijaz and Naeem had already been arrested from Okara. They reportedly hail from Hujra Shah Muqeem. They had informed police about the presence of militants in the house. Minister for Anti-Terrorism Colonel Shuja Khanzada, while speaking to media persons, said that attackers were likely part of a bigger network. "The suspected militants had been residing in the house for one and half months," he said. The two-storey house is located in Firdous Colony of Arayian Village on Raiwind Road. The house is owned by Dr Manzoor. Intelligence agency officers have reportedly arrested the owner for interrogation. Dr Manzoor is said to be a farmer and lives in a nearby village.

Prime Minister Nawaz Sharif was being constantly updated about the progress of the operation. Punjab Chief Minister Shahbaz Sharif paid tribute to the dead and injured security officials. Chief Minister also announced ten million for the family of Sabir Hussain, one million each for injured Muhammad Afzal Sajid and Muzafar Hussain.

Agencies add: Security forces Thursday raided a suspected militant hideout just a few kilometres from the family home of Prime Minister Nawaz Sharif in Lahore, officials said.

One policeman was killed and three others wounded in the assault in the Raiwind area of Lahore, which came as a military operation against Taliban militants in the country's restive north-west enters its second month amid rising fears of reprisal attacks. "A police team raided a house... around 2:00 am (2100 GMT Wednesday) on a tip-off about the presence of suspected militants, but they retaliated," senior police official Malik Owais told AFP. "One militant was killed on the

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PLP NEWS ALERTS EMAIL No. 166-2014 spot, while the second who was wounded and arrested later succumbed to his injuries at hospital," senior police official Zulfiqar Hameed told AFP.

Police took over the compound and found weapons, he said, adding that the suspects were about 20 and 25 years old and belonged to "Tafseeri Group", a little known Islamist group. Waqas Nazir, another police official confirmed the incident, adding that the raid took several hours because civilians had to be evacuated from the area first. Television footage showed a bullet- ridden compound with a large hole blown into one of its walls.

The clash in the eastern city in the early hours of the morning came as the army carries out an offensive to clear Pakistani Taliban militants from strongholds in North Waziristan, a remote north-western region on the Afghan border. In Lahore, the two militants holed up in a house used rocket-propelled grenades and machine-guns to battle police outside. One militant was killed and the other wounded and captured, said police chief Zulfiqar Hamid. Three policemen were also wounded. After entering the house, police found explosives and detonators, said another policeman. There was no claim of responsibility.

July 18, 2014

At least eight persons were killed and four others wounded in two bomb blasts in Hangu's Droreyo Banda area here on Thursday. According to security sources, the bombs were planted on roadside for targeting security personnel's convoy which exploded with big bang, killing eight persons on the spot and injuring four others. Security personnel were targeted in the attack, they added. Police and relief teams rushed to the place of the incident and transferred the injured and bodies to hospital.

Security forces cordoned off the area after the incident. Bomb Disposal Squad which was called at the scene of the bombing for collecting evidence, said that a bomb weighing about 10 kilograms was used in the attack. Prime Minister Nawaz Sharif strongly condemned the bomb blasts and expressed his condolences with the bereaved families.

By Our Correspondent

Published: July 18, 2014

KARACHI:

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PLP NEWS ALERTS EMAIL No. 166-2014 Farrukh Patel, who works at a school in DHA, fears for his life after an attempt to kidnap him was made at his own house in the neighbourhood’s Phase VII on July 4.

However, Patel registered a complaint on July 9 against his in-laws as he and his estranged wife have been fighting a custody battle over their son, who was granted into his father’s custody. He recalled that on July 4, some men, pretending to be from the intelligence agencies, tried to take him away. They ransacked his house, looking for his child and only left in a hurry as their noises attracted a few neighbours to the gate.

Investigation officer Rashid has been trying to string together as much information as possible. On July 15, a police team raided the house of Patel’s in-laws and took his wife and her parents into custody until the matter is resolved in courts.

The dispute has been going on for the past three years. “This is a family matter and it appears his in-laws were behind the kidnapping attempt,” said Rasheed. The police have yet to file a challan in court.

Published in The Express Tribune, July 18th, 2014. Islamabad: Afghans among 80 suspects arrested

Daniyal July 17, 2014

ISLAMABAD/RAWALPINDI: The teams of the Pakistan Rangers (PR) and Islamabad Police on Wednesday conducted a joint search operation in the slums of Sector I11/1 and nabbed 80 suspects including 21 Afghans, a police spokesperson said. Following directions from Islamabad SSP Muhammad Ali Nekokara, a search operation was conducted in the Sabzi Mandi police area which.

The operation was supervised by SP (Industrial Area) Liaqat Hayat Niazi, SDPO Syed Muhammad Bilal, Sabzi Mandi Police Station SHO, and contingents of the Pakistan Rangers. During the search operation, 80 suspects including 21 Afghans were arrested who are being investigated further.

The Industrial Area SP has said that the Afghan cards of the nabbed suspects would be verified and their mobile phones record would be obtained. He said that the Islamabad police have set up a cell with latest technology to trace the links of such suspects with criminal elements, dacoits, or car lifters if any. Nekokara has directed to maintain high vigilance and conduct search operations in under construction buildings, hotels, inns, slum, and other areas. He further directed to involve the Eagle Squad, Falcon, and commandos in these efforts of alert and active policing measures so that they can approach in time in case of any problem. Meanwhile, the Islamabad police arrested four outlaws and recovered two stolen motorbikes and two pistols from them. Further investigation is underway from them.

Meanwhile, the Sabzi Mandi police have arrested two extortionists who were involved in demanding money from a citizen and later threatening to kill his children, a police spokesperson BACK TO HEADLINES Page 78

PLP NEWS ALERTS EMAIL No. 166-2014 said. According to reports, Hafeezur Rehman Abbassi runs a business of transport service at Sector I10 Markaz and had lodged a report with the Sabzi Mandi Police Station about an unidentified caller demanding Rs 4 million from him, besides threatening to kidnap and kill his children if he did not fulfill his demand. The Sabzi Mandi police registered a case under 25-D telegraph act and Islamabad SSP Muhammad Ali Nekokara constituted a special team under the supervision of Industrial Area SSP including SHO Sabzi Mandi.

The team investigated into the matter and succeeded to trace two culprits after collecting evidences against them. The police have recovered two 30 bore pistols from them and it has been revealed during the preliminary investigation that one of the accused also got training along with the terrorists in Afghanistan.

Further investigation into matter is underway. The Islamabad SSP has appreciated the performance of the Sabzi Mandi police team and has announced cash prizes and commendation certificates for the members of the police team. Moreover, a dead body of a drug addict has been recovered from the area of Iqbal Town. According to sources, a dead body of a 45-year- old man has been recovered from the suburban area of Iqbal Town. The police officials have said that the deceased seems to be a drug addict who died because of drug overdose. The dead body has been shifted to PIMS Hospital for further medico-legal formalities while the deceased could not identified till the last report was filled. Karachi: 3 suspected criminals arrested

Daniyal July 17, 2014

KARACHI: Three criminals were arrested from Shahrah-e-Quaideen, said a Special Investigation Unit (SIU) official on Wednesday. Senior Superintendent of Police (SSP) Muhammad Farooq Awan said the SIU carried out a raid at Shahrah-e-Quaideen near Khudadad Colony and arrested three criminals.

Two of the suspects were identified as Akbar Naveed alias Naveedi and Danish alias Rehan. Three pistols and bullets were also found on the detainees.

SSP Awan said the suspects were involved in various murders, attempted murders, robberies and other heinous crimes.

He said Naveed was involved in the killing of Qamar Abbas, the assistant director of the Employees Old-age Benefits Institution, last year. 2 held, NCP van seized in Tank

Daniyal July 17, 2014

TANK: The police arrested two smugglers and seized a non-custom paid (NCP) van from their possession at the Gule Imam checkpost in Tank district on Wednesday, an official said.

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PLP NEWS ALERTS EMAIL No. 166-2014 Talking to The News, District Police Officer Kifayatullah Wazir said that the police stopped a car at the Gule Imam checkpost and after thorough search one of the accused Sher Ayub, a resident of Mir Ali and Said Nawaz, a resident of Umar Adda in Bhittani, were arrested.

He said that they were coming from Wana, headquarters of South Waziristan but after preliminary investigation, Sher Ayub told the police that he had gone to Tank to see his friends and relatives.

He said the accused failed to give the names of the relatives and friends and place in Tank district. The DPO said that some of the officials were also involved in the smuggling of the NCP vehicles from Tank to other parts of the province. Peshawar: Alleged killer of cop arrested

Daniyal July 17, 2014

PESHAWAR: The police arrested an accused involved in the killing of a cop and lifting of a vehicle of a sessions judge from Islamabad on Wednesday. Police said the accused Salimullah was involved in lifting the car of a sessions judge from Islamabad. An official said that the accused was also involved in kidnapping and killing of a policeman, Ghulam Fareed. Islamabad: 2 arrested on charges of extortion

Daniyal July 17, 2014

ISLAMABAD: The Sabzi Mandi Police have arrested two extortionists who were involved in demanding money from a citizen and later threatening to kill his children, police spokesman said. Hafeez ur Rehman Abbasi runs the business of transport in Markaz I-10. He lodged a report with the Sabzi Mandi Police Station on July 3, 2014 about an unidentified caller demanding Rs4 million from him besides threatening to kidnap and kill his children if he did not fulfil his demand.

A police team investigated the matter and succeeded in tracing two culprits after collecting evidence against them. They were identified as Taimur Hussain Abbasi, son of Saddar Hussain, and Adeel Abbasi, son of Arshad Mehmud Abbasi, both residents of Rawalpindi. It has been revealed during preliminary investigation that one of the accused Taimur Hussain got training along with terrorists in Afghanistan. Butcher arrested in Nowshera

Daniyal July 17, 2014

NOWSHERA: The district administration on Wednesday arrested a butcher for selling dead animals’ meat and warned the profiteers and hoarders to mend their ways or strict action would be taken against them.

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PLP NEWS ALERTS EMAIL No. 166-2014 Following public complaints, Assistant Commissioner Abdul Hameed Khan paid a surprise visit to the Bakra Mandi and arrested a butcher Amjad for selling meat of the dead animals’ and sent him to jail. Hameed Khan said that those butchers pumping water into the meat would be taken to task. He said no profiting and overcharging would be tolerated at any cost. Rape bid foiled in Pakpattan

Daniyal July 17, 2014

PAKPATTAN: A rape bid was foiled at Chak 123/EB on Wednesday. Accused Naik Muhammad entered a house and tried to rape a woman. On her hue and cry, the accused fled. Police have registered a case.

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PLP NEWS ALERTS EMAIL No. 166-2014 Miscellaneous News Challenging potato hoarders: ECC approves duty-free import to control prices

By Shahbaz Rana

Published: July 18, 2014

ISLAMABAD:

The government has allowed duty-free import of 100,000 tons of potatoes in a bid to arrest rising prices of the commodity in the domestic market apparently caused by hoarders.

The Economic Coordination Committee (ECC) of the cabinet also extended the duty-free import period to mid-November – the time when it expects the new crop to arrive in the market.

It has already approved import of 200,000 tons of potatoes at zero duties but the decision could not keep a check on increasing prices.

In the retail market, the shopkeepers are selling the commodity at Rs80 to Rs90 per kg, while in wholesale the rate is Rs72 per kg.

According to officials of the Ministry of National Food Security, this year potato production has remained less than the target but it is sufficient to meet domestic needs. However, they added, hoarders were manipulating the market.

Four months ago, Finance Minister Ishaq Dar had warned that the government would take strict action against the hoarders but the warning fell on deaf ears as the government lacked administrative powers to crack down on the manipulators in provinces.

However, it has yet to exercise its powers to take action against the hoarders operating in the federal capital.

The ECC allowed duty-free import in order to bring down the prices manipulated by hoarders and middlemen, according to a press release issued by the Ministry of Finance.

The ECC was told that if immediate duty-free import was not allowed, potatoes would be sold at very high prices during Ramazan. In this context, the finance minister approved appropriate measures to control the prices, in coordination with provincial governments, it added.

Gas for Tuwairqi Steel

The ECC formed a committee to review the possibility of giving natural gas to Tuwairqi Steel Mills at concessionary rates.

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PLP NEWS ALERTS EMAIL No. 166-2014 The Ministry of Industries and Production had sent a summary for the supply of natural gas as feedstock to Tuwairqi Steel Mills.

The company signed an MoU with the government of Pakistan on May 28, 2004 for 40 million cubic feet of gas per day (mmcfd) as feedstock and 30 mmcfd as fuel at the same rates as applicable to other such industries.

The committee will study all aspects of the MoU and present a report to the ECC. The finance minister suggested that agreements should be based on well thought out plans and promises that were not implementable should not be made.

He also directed the ministries concerned to prepare an integrated energy plan for the next four years which could include parameters for investment, power generation, distribution and transmission.

Biomass for power production

The ECC also considered a summary of the Ministry of Water and Power for approval of fiscal incentives for biomass-based power generation projects on the model of independent power producers.

The ECC was informed that the draft energy purchase agreement and draft implementation agreement for biomass projects were based on cost-plus formula.

It turned down the proposal and decided that there should be no place for cost-plus purchase agreements. Instead, the upfront tariff approved by Nepra should also be applied to biomass and biogas projects.

The committee directed that no specific contract between two parties should be brought up before it for consideration and only standardised draft agreements would be considered.

Published in The Express Tribune, July 18th, 2014. Regulatory issues persist: SSGC MD quits as govt continues struggle

By Saad Hasan

Published: July 18, 2014

KARACHI:

Managing Director of Sui Southern Gas Company (SSGC), Zuhair Siddiqui, has resigned as an embattled government continues its struggle to deal with regulatory and legal issues related to energy losses and allegations of corruption, officials said.

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PLP NEWS ALERTS EMAIL No. 166-2014 SSGC announced Siddiqui’s departure on Thursday without offering any explanation except for a mention stating that, “… former MD submitted his resignation on personal grounds after leading the organisation for two years”.

In his place, the Ministry of Petroleum has appointed Shoaib Warsi, a career SSGC employee with 37 years of experience, mostly with the transmission and distribution side of the company.

Petroleum Minister Shahid Khaqan Abbasi said that Warsi has been given the MD’s charge temporarily. “We have reconstituted the boards in the energy companies. In the coming days, the board will appoint managing directors.”

Change at the top of SSGC comes just days after unceremonious exit of the Managing Director of Pakistan Petroleum Limited.

Earlier, the Supreme Court of Pakistan had asked the government to appoint a commission to appoint key officials in state-run companies including energy firms.

But now the government is following the procedure prescribed by the Securities and Exchange Commission of Pakistan (SECP) – through the board of directors.

Waiting for winds to change

Siddiqui and his management, just like those in its sister-organisation Sui Northern Gas Pipelines Limited (SNGPL), have been helpless for more than a year due to regulatory and legal issues.

SSGC has not been able to announce financial results for four previous quarters and is set to miss the target for the last April-June 2014 quarter as well.

“No one knows what is happening. This is second straight year for which we haven’t announced the financial results,” said a company official.

Revenue and expenditure of SSGC and SNGPL is decided by the Oil and Gas Regulatory Authority (OGRA), which has remained dormant for over a year due to lack of key appointment of a member and indecisiveness on crucial subject of Unaccounted for Gas (UFG) losses.

The UFG, which is basically the extent of loss of gas allowed to SSGC and SNGPL in their vast pipeline system, has become a contagious issue. Since the Tauqir Sadiq case exploded, many of the senior officials including Siddiqui, have been dragged into the investigations.

A simple solution

Abbasi said that the issue facing gas companies is not simple but insists there is indeed a way out.

“There is a reality, which needs to be accepted. And that reality is that UFG losses stand at 10.5% while Ogra is not willing to allow anything over 4.5% due to the fear of court orders,” said the minister. “That’s around a Rs6-billion difference. Who is going to pay that?” he asked.

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PLP NEWS ALERTS EMAIL No. 166-2014 The UFG losses stem from theft and erosion of pipelines. Massive expansion of piped gas to small towns and villages across the country has added to the losses, officials say.

The only way out for the Economic Coordination Committee is to ask Ogra to revise up the UFG limit, says Abbasi. “We will be taking a summary to ECC after Eid.”

Published in The Express Tribune, July 18th, 2014. Foreign exchange: Reserves slide by $116 million in a week

By Our Correspondent

Published: July 18, 2014

KARACHI:

Foreign exchange reserves held by the State Bank of Pakistan (SBP) stood at $9,485.8 million on July 11 after registering a decrease of 1.2% over the preceding week, data released by the central bank on Thursday showed.

The central bank’s foreign exchange reserves decreased $116 million to $9,485.8 million at the end of the second week of 2014-15 as opposed to $9,602 million on July 4.

During the week ending on July 11, the SBP made payments of $31 million on account of external debt servicing and other official payments. During the same week, the central bank received $22 million from multilateral and bilateral sources.

Total liquid foreign reserves held by the country, including net foreign reserves held by banks other than the SBP, stood at $14,513.6 million, while net foreign reserves held by banks amounted to $5,027.8 million on July 11.

On a year-on-year basis, Pakistan foreign exchange reserves rose more than 50% in 2013-14. The steep rise in the SBP-held foreign exchange reserves in the second half of the last fiscal year has been praised by international financial institutions as well as global rating agencies.

For example, the International Monetary Fund (IMF) has praised the SBP for its performance on the foreign exchange reserves position. “Encouraged by favourable market conditions, in recent months the SBP has considerably stepped up its purchases of foreign exchange in the spot market. This laudable effort has contributed to the sharp recovery in reserves,” the IMF said in its third review under the Extended Arrangement for Pakistan.

Although the SBP-held foreign exchange reserves increased dramatically in the last fiscal year, the IMF noted in the report that they remain at low levels and that the central bank should continue its efforts until reserves ‘comfortably exceed’ three months of import cover.

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PLP NEWS ALERTS EMAIL No. 166-2014 “Greater willingness to accommodate downward exchange rate flexibility could play an important role in accelerated reserves accumulation while helping boost exports over time,” it said.

International ratings agency, Moody’s Investors Service, revised the outlook on Pakistan’s foreign currency government bond rating to stable from negative. One of the reasons it cited for the upgrade was rising foreign reserves. It also predicted that the continued implementation of structural reforms would further buffer Pakistan’s foreign reserves in the future.

Published in The Express Tribune, July 18th, 2014. Shale gas: Government to initiate pilot projects to fill energy gap

By Zafar Bhutta

Published: July 18, 2014

ISLAMABAD:

Encouraged by estimates given by the US Energy Information Administration (EIA), Pakistan has planned to launch pilot projects for tapping the country’s huge shale gas reserves in an effort to gradually bridge the yawning gap between demand and supply of energy, sources say.

According to an EIA assessment, Pakistan has massive shale gas reserves estimated at 51 trillion cubic feet (tcf) compared to conventional gas reserves of 58 tcf.

At present, shale gas is not being produced in the country and significant initial work is required to be undertaken to tap this potential energy resource.

Shale gas is extracted directly from shale formations and since it has low permeability compared to conventional reserves, it does not come out easily and specific investment and pricing are required for its exploitation.

With the discovery of huge shale gas reserves, the US has become a gas-exporting country. According to reports, Washington in future will experience a boom in shale oil production as well and will become the largest oil producer.

According to sources, Pakistan will offer $12 per million British thermal units (mmbtu) to gas exploration and production companies under the pilot programme, a price that is close to the price of gas to be imported from Iran under the Iran-Pakistan pipeline project.

“The government will offer this price for first three discoveries of shale gas,” an official told The Express Tribune. “A policy framework is being prepared and its approval will be sought from the Economic Coordination Committee (ECC) of the cabinet.”

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PLP NEWS ALERTS EMAIL No. 166-2014 According to the official, exploration companies have already found some traces of shale gas during search for conventional gas as 10% to 12% shale gas appears on upper faces of conventional gas.

The United States Agency for International Development (USAID) has signed an agreement with Pakistan for providing technical assistance in conducting a study on shale gas reserves, which will endorse the EIA’s estimates. It will take five years to complete the study.

Experts point out Pakistan has consumed around 40% of conventional gas reserves and shale gas is the most viable option to meet growing needs.

According to a study conducted by a group of exploration and production companies, the cost of shale gas production will become economical at about 80% of Brent crude price, but this will have to be brought down to 70%.

New wells

Apart from shale gas, the government is also planning to drill 400 wells in the next four years aimed at enhancing the country’s oil and gas production, officials say.

Though in the past one year new gas deposits had been found, total production of the country stands at the same level at four billion cubic feet per day because of depletion of reserves in existing fields.

However, oil output has risen to near 100,000 barrels per day compared to 74,000 barrels per day earlier.

Published in The Express Tribune, July 18th, 2014. Thawing relations: Pakistan ready to negotiate negative trade list with India

By APP

Published: July 18, 2014

ISLAMABAD:

In efforts to normalise trade, Pakistan is ready to negotiate the negative trade list with India.

In Pakistan’s negative list, items are included that the country will not import from India. Similarly, India’s negative list includes those items that it will not import from Pakistan.

“The negotiation will begin once the composite dialogue between the two countries starts on all subjects, including Kashmir,” said Finance Minister Ishaq Dar in an interview with Arab News.

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PLP NEWS ALERTS EMAIL No. 166-2014 He said that Non-discriminatory market access (NDMA) is the new terminology used between the two countries.

“We will try to reduce the negative list to bare minimum,” Dar said.

The finance minister said that the government has a very clear plan as it wants regional peace, trade connectivity and promotion of business and investment.

“We have worked with the previous Indian government and we want to ease visa restrictions for businessmen, visitors, tourists,” he said. “We want to expand the trade between the two countries.”

Pakistan’s trade with India is reasonable but it can be expanded further, the finance minister remarked. Dar said he personally saw potential in Pakistan’s relations with India, “but that depends on how India moves.”

On the other hand, Pakistan is working with China to make an economic corridor, which will reduce the distance to half from China to Gwadar and also cut the freight costs to half.

The country is also working with Afghanistan and Tajikistan for the CASA-1000 electricity transmission line.

With regards to terrorism he said “we are working very hard to combat the problem, we have lost $103 billion due to terrorism and our economy has suffered the most.”

He added that the numbers of lives lost are more than 40,000 people in the last one decade, including almost 5,000 soldiers. “Pakistan has paid the heaviest price for terrorism,” he added.

To a question on the suspension of flights to Pakistan by foreign airlines, Dar said “what has happened in Peshawar recently is unfortunate, once we sort out things, we are sure the foreign airlines will resume flights.”

Published in The Express Tribune, July 18th, 2014. Government’s wish-list seems far-fetched: Bilwani

By Our Correspondent

Published: July 18, 2014

KARACHI:

Pakistan Apparel Forum Chairman Jawed Bilwani has welcomed comments of Commerce Minister Khurram Dastgir Khan on creating new jobs through revival of sick textile units but said that it will be highly challenging due to the energy shortage in the country.

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PLP NEWS ALERTS EMAIL No. 166-2014 In a statement on Thursday, Bilwani said the remarks of Dastagir Khan on “re-operating closed textile units” to enhance its annual exports by $1 billion and create 100,000 new jobs is really surprising.

“The government’s intention appears promising but at a time when inadequate gas and electricity supply is creating problems for the active factories, how will the government provide utilities to sick textile units?” he asked.

“Many textile factories are heavily burdened and struggling to run their business and meet their foreign buyers’ commitments owing to severe load-shedding and inadequate infrastructure.”

The chairman further added that if the idea of re-operating the dead units is being worked upon at the cost of the current factories, then it is incomprehensible for the industrialists. The factories need more gas and electricity to increase their production and for that, the government’s first priority should be to increase the supply of utilities.

He reiterated that it is imperative for the government to first provide interrupted supply of power to the operating export oriented industries that have the potential to enhance its exports to approximately $2 billion and create many job opportunities. “The target of creating thousands of new jobs in the textile sector will be achieved only when the factories get proper utilities with consistency,” Bilwani concluded.

Published in The Express Tribune, July 18th, 2014. Venting: APTMA demands payment of sales tax refunds

By Our Correspondent

Published: July 18, 2014

LAHORE:

All Pakistan Textile Mills Association (APTMA) Punjab Chairman S M Tanveer has urged Finance Minister Ishaq Dar to direct the Federal Board of Revenue (FBR) to meet the deadline of liquidating the sales tax refunds of the textile industry by September as per his pledge in the budget speech.

Despite the fact that the industry is being treated under the Reduced Rate Regime, a total of Rs20-25 billion Sales Tax refunds of the textile industry are stuck up with the FBR for over six years. About Rs50 million per textile mill is payable on account of special excise duty, deferred and current/regular refund claims.

“Textile industry is an export-oriented industry, facing acute energy shortage, particularly in Punjab,” said Tanveer. “The industry is unable to exploit the potential of market access facility from the EU under the GSP Plus facility, as liquidity as well as energy constraints are hampering its growth badly. Majority of mills are operating on two shifts.

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PLP NEWS ALERTS EMAIL No. 166-2014 “The industry will also not be able to procure cotton due to the prevailing circumstances, therefore, the government should expedite the processing of refund claims of textile industry.”

Tanveer has appealed to the FBR to direct the Regional Tax Offices as well as the Large Taxpayer Units to start processing the refund claims to meet the September 2014 deadline.

Published in The Express Tribune, July 18th, 2014. Losing competitiveness: ‘Country lacking export edge’

By APP

Published: July 18, 2014

ISLAMABAD:

Development and promotion of brands will not only help expand businesses but also bring in foreign exchange, said Federation of Pakistan Chamber of Commerce and Industry Chairman Brand and Marketing Committee Sheharyar Ali Malik.

Malik was talking to leading exporters and stressed the urgent need for developing brands to capture open global and local markets. He said the vertical integration and institutional network are to be strengthened on modern scientific lines to meet the future challenges of global marketing.

He said that Pakistani entrepreneurs have the potential to compete in the foreign markets but they fail to focus on developing their own brands. Malik added Pakistan is producing one of the best products in the world in sports, textile, fruits, vegetables, handicrafts and in several other sectors but not exporting them.

Published in The Express Tribune, July 18th, 2014. Crackdown: Illegal exchange raided in Lahore

By Our Correspondent

Published: July 18, 2014

KARACHI:

The Federal Investigation Agency (FIA) raided and seized a functional illegal gateway exchange in Lahore, according to a press release issued by Pakistan Telecommunication Authority (PTA).

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PLP NEWS ALERTS EMAIL No. 166-2014 PTA and FIA teams, through combined efforts, carried out the raid at a house in the city.

The telecom regulator and the FIA seized an operational illegal gateway exchange and confiscated a laptop, VSAT dish and approximately 2,000 SIMs of all mobile operators. One person was arrested and is in custody of FIA for further investigation.

PTA is observing international traffic in to the country round the clock to identify illegal gateway exchanges and track the elements operating them. PTA’s Enforcement Division, with the support of Zonal Directorates, is vigilant and making elaborative efforts to curb grey traffic in the country.

Published in The Express Tribune, July 18th, 2014.

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PLP NEWS ALERTS EMAIL No. 166-2014

OPEN MARKET FOREX RATES Updated at: 18/7/2014 6:33 AM (PST) Currency Buying Selling Australian Dollar 92 92.25 Bahrain Dinar 261.5 261.75 Canadian Dollar 91.6 91.85 China Yuan 15.75 15.9 Danish Krone 17.85 18 Euro 133.85 134.1 Hong Kong Dollar 12.55 12.7 Indian Rupee 1.6 1.65 Japanese Yen 0.98 0.99 Kuwaiti Dinar 350 350.25 Malaysian Ringgit 30.25 30.5 NewZealand $ 86.35 86.6 Norwegians Krone 16 16.15 Omani Riyal 256 256.25 Qatari Riyal 27.05 27.3 Saudi Riyal 26.25 26.5 Singapore Dollar 79 79.25 Swedish Korona 14.7 14.85 Swiss Franc 110.3 110.55 Thai Bhat 3 3.05 U.A.E Dirham 26.85 27.1 UK Pound Sterling 168.75 169 US Dollar 98.75 99

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PLP NEWS ALERTS EMAIL No. 166-2014

INTER BANK RATES Updated at: 18/7/2014 6:33 AM (PST) Bank Buying Bank Selling Currency TT Clean TT & OD Australian Dollar 92.01 92.2

Canadian Dollar 91.54 91.73

Danish Krone 17.84 17.87

Euro 133 133.27

Hong Kong Dollar 12.68 12.71

Japanese Yen 0.9680 0.9700

Saudi Riyal 26.21 26.26

Singapore Dollar 79.17 79.33

Swedish Korona 14.4 14.43

Swiss Franc 109.49 109.71

U.A.E Dirham 26.76 26.82

UK Pound Sterling 168.48 168.82

US Dollar 98.3 98.5

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PLP NEWS ALERTS EMAIL No. 166-2014 Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) As on Fri, Jul 18 2014, 02:00 GMT PKR PKR PKR Metal Symbol for 10 Gm for 1 Tola for 1 Ounce

Gold 24K XAU 41,679 48,563 129,638

Palladium XPD 27,990 32,613 87,061

Platinum XPT 47,476 55,317 147,670

Silver XAG 669 779 2,080

Gold Rates in other Major Currencies 1 Currency Symbol 10 Gm 1 Tola Ounce Australian

AUD 452 527 1,406 Dollar Canadian

CAD 455 530 1,415 Dollar

Euro EUR 313 364 973

Japanese

JPY 42,824 49,897 133,200 Yen U.A.E

AED 1,553 1,810 4,832 Dirham UK Pound

GBP 247 288 770 Sterling

US Dollar USD 423 493 1,315

* These rates are taken from International Market so there may be some fluctuation from Local Market.

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