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Saturday, August 23, news 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. 192-2014 NEWS HEADLINES Top Stories ...... 5 Prospects still dim: talks resumed to end political drama ...... 5 'Zardari holds a trump card' ...... 6 Prime Minister invites Zardari to luncheon at Raiwind ...... 7 Nisar warns against barging into buildings ...... 8 Protests have no support: Fazl ...... 9 Lawyers' petitions: Supreme Court seeks reply from Qadri, Imran says he believes in rule of law ...... 9 Pervez, Saad, Abid move LHC against lower court's order ...... 10 US rejects Imran's allegations ...... 11 Senate voices its opposition to two major demands ...... 12 JI MNA for registration of FIR of Lahore killings: National Assembly condemns attacks on media persons ...... 13 ABC concerned at political impasse ...... 14 PTI MNAs submit resignations to Speaker's office ...... 15 THE RUPEE: falls versus dollar, euro ...... 15 NHA asked to complete work on Lowari Tunnel in three years ...... 17 ST and FED payment date extended to August 27 ...... 17 Indus Waters Treaty: Indian delegation arrives today ...... 18 SBP clarification ...... 18 Butt community asks Imran to apologize ...... 19 Governor Punjab telephones Altaf ...... 19 By-election within 60 days: ECP official ...... 19 Militant attack from Afghanistan kills FC man ...... 20 Scottish independence would prompt 'capital flight': HSBC ...... 20 Ukraine accuses Russia of 'invasion' as aid trucks move in ...... 21 70 killed at Iraq Sunni mosque attack ...... 22 US judge 'ignorant' of democracy: Argentina ...... 22 Ananthamurthy dies at 82 ...... 22 Stocks up in thin trade ...... 23 Business and Economy: Pakistan ...... 25 CA posts $454 million deficit in July ...... 25 Punjab government approves six development schemes ...... 25 MIEA rejects FESCO's load management plan ...... 26

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PLP NEWS ALERTS EMAIL No. 192-2014 FCCI chief urges businesspeople to support constitutionalism ...... 27 FCCI, SMEDA hold joint training programme for youth ...... 28 Activities at Karachi and Qasim ports ...... 28 CM Sindh asks KMC to bring 36 buses to road by September 2 ...... 30 CAA DG visits Hajj Terminal at Lahore airport ...... 31 'Australian firms interested in Halal food market' ...... 32 Exporters urged to capture Russian food market ...... 32 PDWP approves Canal Express Way mega project ...... 33 Taxation: Pakistan ...... 35 Procedure amended: importers authorised to examine goods ...... 35 Dairy sector: ST refunds to be processed as per law: FBR ...... 35 Cotton and Textiles: Pakistan ...... 38 Cotton market: rising rates likely to fall in near future ...... 38 Baig lauds Supreme Court judgement ...... 39 Agriculture and Allied: Pakistan ...... 40 Daily trading report of PMEX ...... 40 Indus Waters Treaty: Indian delegation arrives today ...... 40 Irsa releases 30,000 cusecs of extra water from Tarbela Dam ...... 40 Weather pundits warn farmers of pest/viral attacks ...... 41 UAF holds seminar: farmers urged to ensure balanced usage of fertilisers ...... 42 FPCCI President for subsidy on agriculture-products ...... 43 Qadri's allegation rejected: 'Poultry Traders' Association fixes prices in Punjab' ...... 43 Dairy sector: ST refunds to be processed as per law: FBR ...... 44 Fuel and Energy: Pakistan ...... 46 POL products' prices may be reduced ...... 46 Shift to coal: IPPs asked to make their cases in accordance with key provisions of rules...... 47 KE receives ISO 9001-2008 certificate for SITE IBC ...... 48 Fuel and Energy: World ...... 49 US crude falls, down for fifth week, on ample supply ...... 49 UK oil output threatened by platforms running out of juice ...... 50 Britain introduces payment disclosure rule for energy, mining firms ...... 51 Germany clears $6.9 billion RWE unit sale to Russian investor ...... 51 Lithuania, Statoil sign LNG deal to end Gazprom monopoly ...... 52 US natural gas futures down one percent ...... 53 Vestas raises guidance as headwinds subside ...... 53

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PLP NEWS ALERTS EMAIL No. 192-2014 Crime News...... 55 Peshawar: Capsules filled with heroin seized ...... 55 3 alleged extortionists arrested in Charsadda ...... 55 Accountant held for fraud in Lahore ...... 55 Drug pusher held in Daska ...... 55 3 booked for water theft in Daska ...... 56 Kidnapping?: Two sisters go missing...... 56 Miscellaneous News ...... 57 Lending support: OGRA backs plan to siphon LNG to CNG filling stations ...... 57 1MFY15: Current account deficit swells ...... 58 Agriculture: FPCCI chief raises food security concerns ...... 59 Uncertainty to increase amid political impasse ...... 60 Investment scam: Court seeks comments of NAB deputy prosecutor ...... 62 Investment: Australia sizes up halal food sector ...... 63 Revamp: Chrysler’s pickup gears up for facelift ...... 63 Apple iPhone6: Redesign gives rise to supply hiccup ...... 64 Focus on telecom: Technology exhibition in town ...... 66 US slaps sanctions on Taliban, al Qaeda linked men, financing company ...... 66 Heavy Indian cross-border firing near Sialkot leaves 2 civilians dead, 6 injured ...... 68 Show of strength: PML-N workers rally in support of Nawaz ...... 68 Controversial extension: IHC hears auditor general’s case today ...... 69 Marchers health woes: CDA told to improve sanitation facilities ...... 70 OPEN MARKET FOREX RATES ...... 72 INTER BANK RATES ...... 73 Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) ...... 74 Gold Rates & Silver Rate from major cities of Pakistan ...... 75

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PLP NEWS ALERTS EMAIL No. 192-2014 Top Stories Prospects still dim: talks resumed to end political drama

August 23, 2014

ZULFIQAR AHMAD, FAZAL SHER &WAQAR LILLAH

The stalled talks between Pakistan Tehreek-e-Insaf (PTI) and ruling Pakistan Muslim League- Nawaz (PML-N) that resumed on Friday ended without securing any breakthrough. The talks between another team of government negotiators with Dr. Qadri's side also ended on a similar note.

However, after the second round of talks with the government's team, Shah Mehmood Qureshi told reporters that in the first round of talks his party had presented a six-point charter of demands, and they explained to the government side their viewpoint after consultations with their leadership.

"We've also conveyed our concerns and apprehensions and it has been decided that both the parties will look into each other's reservations and the third round of talks will take place today (Saturday)," he added. Earlier, at a meeting of PTI core committee with Imran Khan in the chair, it was decided to resume talks with the government. The PTI negotiators were Javed Hashmi, Shah Mehmood Qureshi, Asad Umar, Dr Arif Alvi and chief minister KP Pervez Khattak.

Dr Shireen Mazari, PTI central information secretary, said that the party's core committee had agreed there would be no change in the stance of PTI over the resignation of prime minister, which it had set as precondition for resumption of dialogue. Before proceeding for talks at a local hotel, Javed Hashmi told reporters that the first demand of his party was the resignation of prime minister. "We just want the PM to quit...the dissolution of assemblies or electing a new prime minister from PML-N will be discussed later," he contended.

The government negotiators were governor Punjab Chaudhary Muhammad Sarwar, Pervez Rashid, information minister, Lt-Gen Abdul Qadir Baloch (retd), minister for Safron, Zahid Hamid, minister for science and technology, and Ahsan Iqbal, minister for planning, development and reforms.

The PTI chairman, Imran Khan, on Friday, the ninth day of his sit-in, reiterated his resolve of not backing down from his stance. Imran also challenged Pakistan People's Party (PPP), Jamiat Ulema-e-Islam-Fazal (JUI-F), Awami National Party and ruling PML-N to assemble even 10 percent of his crowd as a protest demonstration against him he would order re-election in Khyber Pakhtunkhwa.

Imran said that his party's provincial government had completely depoliticized Khyber Pakhtunkhwa Police, adding no politician could dare interfere in administrative matters of police. He said a corrupt patwari culture had been buried forever while Punjab government was still

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PLP NEWS ALERTS EMAIL No. 192-2014 relying on patwaris.

He criticized Punjab government for not introducing local government system in a bid to keep the finances in its own hands. "We're going to devolve power to the grassroots level and Pervez Khattak will give contracts of bridges to Shehbaz Sharif, of which he [Shahbaz] is very fond of," he remarked. Addressing the prime minister, Imran posed a challenge to that that he was ready to hold fresh elections in KP if he [Nawaz] too held polls in Punjab, "but with a neutral umpire."

The PTI leader said his first priority would be the restructuring of police force after he come to power. He claimed that people had started civil disobedience movement by not paying toll tax, utility bills, and income tax. "Nawaz Sharif paid only Rs5000 as tax last year and his name should be included among those deserving families who are getting monthly stipends through social safety net of Benazir Income Support Programme (BISP)," he remarked.

The stance of the PTI leader was more rigid as he declared that a decision to leave the sit-in venue without getting the resignation of Prime Minister Nawaz Shairf would be made over his dead body, adding he would continue to stay at 'Azadi Square' unless the "monarchy of Sharif" was over.

Meanwhile, in his late night address, Pakistan Awami Tehreek (PAT) chief Dr Tahirul Qadri said that the sit-in would continue till the 'demise' of PML-N governments in the center and in Punjab. He said that PAT would exact revenge from the 'cruel rulers' who killed innocent people as "in the presence of Nawaz Sharif, there is no light at the end of the tunnel".

"The PML-N is responsible for the Model Town massacre," he said. Qadri claimed that over 25000 of his party workers were still missing while dozens killed by police in Lahore in broad daylight. "Is there any moral justification with these MPs who back a killer prime minister for the sake of so-called democracy as he [Nawaz Sharif] along with his brother, trampled the constitution? Is this what you call democracy," he questioned.

He dispelled the impression that PAT and PTI sit-ins were creating problems to judges and parliamentarians, adding judges of Supreme Court, parliamentarians and officials working in state institutions were reaching their offices late due to containers placed by the federal government. He also alleged that several PAT workers fell unconscious after drinking intoxicated water supplied by the government. He blamed the Punjab government for blocking exits of all major cities in Punjab with a view to preventing PAT workers from reaching Islamabad.

August 23, 2014

M RAFIQUE GORAYA

Former President and Co-Chairperson Pakistan People's Party (PPP) Asif Ali Zardari is said to be having an advantage that makes him more likely to succeed than other politicians to help

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PLP NEWS ALERTS EMAIL No. 192-2014 resolve the current turmoil in the country, political analysts said on Sunday.

Speaking on various private TV channels, they opined that the 17th June Model Town tragedy, the PTI's Azadi March and PAT's Inqilab March have considerably weekened the Nawaz Sharif government, though it commands renewed confidence of Parliament. They warned that if the PPP, the second largest party in Parliament, decided to withdraw its support to the government it would be impossible for Nawaz Sharif to last. Meanwhile, Zardari held separate meetings with Opposition Leader Khurshid Shah, Raza Rabbani and Aitzaz Ahsan in Bilawal House, Karachi, on Sunday. All three leaders briefed Co-Chairperson PPP about the recent political crisis in the country and their meetings with the government and opposition parties in relation to efforts towards resolution of the crisis.

PPP's Khurshid Shah and Qamar Zaman Kaira have already supported six PTI demands, including Nawaz Sharif's resignation if vote rigging allegations were proved. Analysts further opined that former President Asif Ali Zardari who had no love lost with the Sharif brothers because of their obscurantist behaviour during his regime might ask Nawaz and Shahbaz to step down and install new Prime Minister and Chief Minister for their party and allow a fair inquiry into vote rigging allegations. Zardari has already demanded registration of an FIR of the Model Town tragedy in accordance with law. However, discussants stressed that today (Saturday) would be very important for the future political course of the country.

August 23, 2014

Prime Minister Nawaz Sharif has invited former President Asif Ali Zardari to a luncheon today (Saturday). Sources in the Prime Minister's House confirmed that Nawaz Shaif telephoned Asif Ali Zardri and invited him to a lunch at Raiwind. They added that Prime Minister is expected to leave for Raiwind on Friday and may remain there until Monday.

Sources added that both the political leaders are concerned about a possible threat to the system and democracy and would discuss options for a way out to end the current political stalemate. Meanwhile, Minister for Defence Khawaja Asif said that the government wants an early end to the current stalemate. Meanwhile, Pakistan People's Party (PPP) co-chairman Asif Ali Zardari has given a task to the opposition leader in the National Assembly Syed Khursheed Shah to help defuse political deadlock.

The meeting of the PPP central executive committee took place here with the former president Zardari in the chair. The meeting also decided to engage former Punjab governor Makhdoom Ahmed Mehmood in the dialogue process. The PPP leaders agreed that they would back the government in both the houses of the parliament and that they would not support any undemocratic move against the government. The PPP co-chairman also summoned a meeting of party's Punjab chapter.

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PLP NEWS ALERTS EMAIL No. 192-2014 Copyright Independent News Pakistan, 2014 Nisar warns against barging into buildings

August 23, 2014

Interior Minister Chaudhry Nisar Ali Khan on Friday warned that law will take its course if the participants of Pakistan Tehreek-e-Insaf (PTI) and Pakistan Awami Tehreek (PAT) sit-ins tried to barge into the buildings of state institutions located in the 'Red Zone.' Addressing a news conference, he said he wants to make it clear that government will not allow protesters to "attack" state institutions.

"Your freedom ends where my nose begins. I have been threatened of bloodshed. I want to make it clear that the responsibility of bloodshed will be on their shoulders because we have every right of self-defence," he warned. He said as per district administration's written agreements with PTI and PAT, it was decided that they would confine themselves outside the Red Zone, but it was decided by the Prime Minister to allow them to enter the Red Zone. Nisar said that the entry of protestors to the Red Zone should not be taken as a weakness of the law-enforcing agencies.

"The law enforcement agencies were fully capable of preventing the entry of marchers to the Red Zone, but the government decided to allow them to breach it in the larger interest of the safety of people, particularly women and children," he said. The Interior Minister said both the parties have again expressed willingness for talks, "which is a positive signal". He added: "the government is always ready for meaningful dialogue and the next 48 hours are very crucial."

Nisar said the government is prepared to accept most of their demands. He said all political parties and the nation are on the one side while Imran on the other. He said that government has placed containers at different places for the security of protestors. "The government is ready to remove some containers if Imran and Qadri take responsibility in case of any untoward incident," he said.

The Interior Minister said according to reports of country's top intelligence agency, Inter- Services Intelligence (ISI) there are serious security threats to marchers. Quoting reports, he disclosed that two would-be suicide bombers have entered the twin cities. He said that security agencies have enhanced monitoring and examination of vehicles especially those coming from Khyber Pakhtunkhwa (KP) as they have security threats from the KP side.

He said he has decided to send some senior officials of his Ministry to the leadership of PTI to inform them of the threats and seek their co-operation in this regard. Nisar dispelled the impression that the IGP Islamabad was removed by Ministry of Interior as he resisted implementation of some orders. He said IG himself sought leave which was granted.

He urged Imran Khan not to believe or spread such "rumours" as he is a national leader. The Minister regretted that Imran has used highly indecent language against Interior Secretary who is a thorough professional and honest officer. He said that magnetic ink used during the last general elections in Pakistan is not used in any part of the world. He said during the meetings held on the issue so far, the Election Commission of Pakistan has decided not to use this magnetic ink in

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PLP NEWS ALERTS EMAIL No. 192-2014 future elections. Nisar said two foreign dignitaries have postponed their visits to Pakistan due to unrest "created by both the parties".

August 23, 2014

Maulana Fazalur Rehman, chief of the Jamiat Ulema-e-Islam (JUI-F) said the protests had no support from the majority of Pakistan's 180 million population. "They have been isolated and people of Pakistan have rejected them - there are maximum 5,000 to 6,000 people combined with them at night," he told AFP.

Despite rumours that the military had some hand in the protests, the Minister for Water and Power Abid Sher Ali, a PML-N stalwart, insisted there was "no pressure on us from any state institution to resign." "It is the imagination of some lawless and outside elements camping out there," he told AFP. But if a full-blown coup d'etat looks unlikely - such a move could jeopardise billions of dollars in foreign assistance and trade deals - analysts say the crisis will leave Sharif weakened.

"The protests rocking Islamabad threaten to upend the constitutional order, set back rule of law and open the possibility of a soft coup, with the military ruling through the backdoor," the International Crisis Group wrote. Retired general Talat Masood, a defence and political analyst, said the ultimate outcome was likely to be "real power then will further going to the hands of the military".

Copyright Agence France-Presse, 2014 Lawyers' petitions: Supreme Court seeks reply from Qadri, Imran says he believes in rule of law

August 23, 2014

KHUDAYAR MOHLA

The Supreme Court on Friday asked Pakistan Awami Tehreek (PAT) chief Dr Tahirul Qadri to submit a reply in response to a plea of Lahore High Court Bar Association Multan Bench against sit-ins in Red Zone of Islamabad. Appearing before a five-member larger bench of Chief Justice Nasirul Mulk that resumed hearing of the identical petitions in the case, Barrister Ali Zafar, the counsel for PAT chief, sought time to submit a reply in the matter.

During proceedings, Zafar submitted that a majority cannot turn democracy into a dictatorship, adding that every person has a democratic right to hold a peaceful demonstration, marches, sit-

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PLP NEWS ALERTS EMAIL No. 192-2014 ins and assemblies to pinpoint unconstitutional and illegal actions of the incumbent government. Zafar requested the bench not to interfere in the political affairs and let the political forces decide the fate of the people of Pakistan outside the court.

Meanwhile, submitting before the bench Imran Khan's reply, his counsel Ahmed Awais argued that his client believes in rule of law and supremacy of Constitution. Awais assured the court that PTI has no unconstitutional or extra-constitutional intentions adding that it will not even support any extra-constitutional or unconstitutional act. He further said the PTI will fully abide by the principles laid down by the apex court in a judgement titled Sindh High Court Association verses Federation of Pakistan. In his reply, Imran Khan submitted that his protest Dharna (sit-in) on the Constitutional Avenue is only to exercise right under Articles 4, 9, 15, 16, 17, 19 and 25 of the Constitution, saying his workers will neither storm any building nor obstruct entry into or exit from any building on Constitution Avenue.

The PTI Chairman also prayed the bench to issue directives to the concerned authorities to remove all containers and other obstructions placed on the roads in and around Islamabad. During proceedings, President Supreme Court Bar Association (SCBA) Kamran Murtaza, one of the petitioners, apprised the bench that the situation in the federal capital has further worsened due to the sit-ins of the protesting political parties. He told the court that legal fraternity is facing difficulties in reaching Supreme Court as marchers do not allow vehicles to enter the Constitution Avenue.

Murtaza further said that people are being searched and examined by marchers on the Constitution Avenue as they ask them to produce National Identity Cards. Attorney General for Pakistan (AGP) Salman Aslam Butt submitted that the participants of sit-ins have created encroachments on the Constitutional Avenue. To which, Justice Jawwad S Khawaja inquired about the presence of local administration if private persons have begun to check people's NICs. Justice Anwar Zaheer Jamali remarked that the movement of his vehicle was restricted by the containers placed on his route last week when he was on way to Judges Enclave from airport, saying he finally managed to reach his residence on foot in an hour. The bench adjourned the hearing of matter till August 25.

August 23, 2014

Federal minister for information Pervez Rasheed, federal minister for railways Khwaja Saad Rafiq and state minister for water and power Abid Sher Ali filed a petition here on Friday before the Lahore High Court challenging a sessions court's order through which directed police to lodge an FIR against the petitioners on the complaint of Idara Minhajul Quran for killing Pakistan Awami Tahreek (PAT) workers in Model Town.

Justice Mahmood Maqbool Bajwa judge took up the petition and adjourned it to August 25. Earlier, Justice Iftkhar Hussain Shah had refused to hear it and urged the Chief Justice to mark it

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PLP NEWS ALERTS EMAIL No. 192-2014 before some other bench. Acting Chief Justice Manzoor Ahmad Malik fixed the petition before Justice Maqbool Bajwa.

The petitioner through their counsel Azam Nazir Tarar urged the LHC to set aside the order passed by an additional district & sessions judge on August 16, 2014 through which he directed Faisal Town SHO to register an FIR against the petitioners and others on of Minhajul Quran's complaint in which Prime Minister Nawaz Sharif and Punjab Chief Minister Shahbaz Sharif have also been charged with killings of at least 11 supporters of PAT.

The counsel contended that from the very outset the Idara Minhajul Quran and PAT leaders, including its chief Dr Tahirul Qadri, had been expressing their distrust over police and avoiding joining investigation of the incident. He said they were invited and summoned by the police and a Joint Investigation Team time and again but no response was received.

However, the Minhajul Quran preferred to file a petition under section 22A and 22B of Code of Criminal Procedure (CrPC) before the sessions court for registration of an FIR against the petitioners and others. Tarar pleaded that the order passed by the respondent AD&SJ on the plea of respondent Minhajul Quran was illegal and liable to be set aside.

He said the judge failed to take into account a fact that the version of the respondent given in the petition had already been taken up by the JIT during investigation of an FIR registered by the police. He pointed out that five policemen were also arrested during the course of the said investigation and there was therefore no justification for registration of another FIR. He alleged that the plea filed by Minhajul Quran was politically motivated and the order passed on it by the judge was in violation of Article 4 of the Constitution. He said the AD&SJ acted beyond his jurisdiction in passing the impugned order.

August 23, 2014

The United States (US) of America has denied the allegations levelled by Pakistan Tehreek-i- Insaf (PTI) chief, Imran Khan, of interfering into political affairs of Pakistan. The US Department of State on Friday denied the allegations levelled by Imran Khan of interfering into Pakistan's internal politics. Marie Harf, State Department's deputy spokesperson, repeated that the US does not support any extra-constitutional move in Pakistan.

She stated that the US is not involved in the internal political matters of Pakistan, nor is it included in talks between both the parties, in any way. Harf said the US wants peaceful negotiations between the parties, while it is not in favour of overthrowing of the current Pakistani government. The State Department spokesperson said the US wants peaceful resolution of recent political confrontation in Pakistan and it does not support any extra-constitutional steps.

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PLP NEWS ALERTS EMAIL No. 192-2014 Senate voices its opposition to two major demands

August 23, 2014

WASIM IQBAL

The Senate unanimously adopted a resolution on Friday, opposing the demand of certain parties for the resignation of Prime Minister Nawaz Sharif and dissolution of assemblies. A Senator belonging to Pakistan People's Party, Saeed Ghani, moved the resolution along with a motion requesting for resumptions of a debate on the situation arising out of the 'Azadi and Iniqlab' marches in Islamabad.

The resolution states that the senate rejects the demands of certain parties regarding resignation of the Prime Minister and dissolution of the assemblies and deplores derogatory, instigating and defamatory language used by leaders of these parties. Senator Afrasiab Khattak of Awami National Party (ANP) claimed that the 'Inqilab' march and 'Azadi' march turned out to be a failure.

Senator Usman Saifullah of PPP said the sit-ins in Islamabad would have serious repercussions on war against terrorism. According to him, a delayed government action of strategy had led to the current crisis. However, Saifullah said his party wanted that the government must complete its term. Pakistan Muslim League (N) Senator Mushahid ullah Khan said that the ruling party was showing restraint and patience with regard PTI and PAT sit-ins. He asked Imran Khan and Dr Tahir ul Qadri to desist from using derogatory language in their public addresses.

Another Senator of PML-N, Zafar Ali Shah, also objected to the use of 'derogatory language'. He alleged that Imran in his address to his supporters had said that those sitting in the parliament were thieves and dacoits. He said that Imran should not use such language against honourable parliamentarians. Rubina Khalid of PPP said people observed that there was collective madness on both sides and criticised the media for giving round-the-clock coverage to their sit-ins.

Senator Farhatullah Babar of PPP moved a privilege motion asking the upper house for taking notice of 'vandalism' outside the Parliament by supporters led by Tahirul Qadri and others. He said he tried to enter the parliament building on August 20 but was not allowed to enter as a road leading to it was blocked by the mob while Qadri was asking his stick-wielding crowd to seal the parliament and not let anyone come out or enter to it. He said the sit-in of mob outside the parliament posed an imminent threat to nation's security as the stick-wielding supporters of the parties might also demand control of the nation's assets at a later stage.

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PLP NEWS ALERTS EMAIL No. 192-2014 JI MNA for registration of FIR of Lahore killings: National Assembly condemns attacks on media persons

August 23, 2014

ZAHEER ABBASI & NAVEED BUTT

National Assembly has adopted a unanimous resolution to condemn attacks and manhandling of media persons by the participants of sit-ins. The resolution moved by Minister of State for Parliamentary Affairs Aftab Ahmed Sheikh stated that freedom of expression is a fundamental democratic right and everyone including political workers must respect it.

The resolution demanded of the government to take notice of the situation and take action against those responsible. The Minister also asked Pakistan Tahreek-e-Insaf (PTI) and Pakistan Awami Tahreek (PAT) to end their sit-ins. Talking in the ongoing debate on the prevailing political situation, Sahibzada Tariqullah of Jamaat-i-Islami (JI) appreciated Pakistan Muslim League-Nawaz (PML-N) government for demonstrating a generous attitude towards protesters. He suggested the Prime Minister to consult his party members to resolve the issue. He said that an FIR of the Model Town incident should be lodged.

He said the PTI and PAT have made the whole country hostage. He said that the prime minister must have a deeper look on his party with a view to ensuring that there are no 'Mir Jaffars' and 'Mir Saddiqs' in it. Pakistan Muslim League (N) Raja Javed Ikhlas stated that people are worried about the present political and economic circumstances. He said the present government has accepted the mandate of other parties. He added Prime Minister Nawaz Sharif took a principled stance and "PTI was allowed to form as government in the Khyber Paktunkhwa province." He said a parliamentary committee has been constituted for electoral reforms and requested the PTI to present its proposals to the committee in this regard.

Minister for Information and Broadcasting Pervez Rashid said the Punjab government has taken notice of the incident and an FIR has been registered. In reply to a question about an alleged attack on PTI leader Shah Mehmood Qureshi's residence in Multan, he said that action would be taken against the culprits according to law. He also informed the House that journalists have staged a token walkout to register their protest as they were not allowed park their vehicles in national assembly's parking lot.

Federal Minister for Defence Khawaja Muhammad Asif said the Rangers did not allow media persons to enter their vehicles in the parking lot of Parliament and Cabinet Division. He said the vehicles of the media persons are not safe outside the Parliament area, adding that the matter would be taken up with the Rangers force. Ijaz Jakhrani of PPP also condemned the attitude of PTI and PAT workers with media persons and said the government should take notice of it.

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PLP NEWS ALERTS EMAIL No. 192-2014 ABC concerned at political impasse

August 23, 2014

MUHAMMAD SALEEM

The ongoing political impasse will only add further uncertainty to the future outlook of the businesses in Pakistan; therefore, a speedy resolution is imperative to alleviate the growing concerns of the business community. These views were expressed by the participants of American Business Council's (ABC) roundtable meeting of the year.

The participants said while the first half of FY 2014 had been good for business and majority of participants witnessed top line growth, the last few months have been tumultuous and businesses remained cautious due to the prevalent political disturbances.

General consensus among the participants was that with the IMF having delayed its completion of 4th review amidst conditions, risk to continuation of economic agenda (privatisation, etc) remains in case the political turmoil is long drawn-out. ABC recently held its second quarterly Chief Executive Officers Roundtable meeting which was well attended by the members across a cross-section of sectors including healthcare, financial services, information technology, FMCG, food and beverages, pharmaceuticals, oil and gas and others.

President ABC, Tauqir Ahmed, welcomed the recent exchanges of views between American business and the government on strengthening and improving the effectiveness of intellectual property rights. He also lauded the efforts of the Finance Ministry to involve and consider the feedback of the private sector within the FY14-15 budgetary process.

While these are steps in the right directions, ABC President Tauqir Ahmed also recognized the challenges facing American business in Pakistan, citing issues which have caused great concern to investors including poor law and order, political uncertainty, energy shortages, a lack of a clarity on business policy and a poor enforcement of Intellectual Property (IP) laws. "Pakistan has an opportunity to grow its pharmaceutical industry, foster innovation and create competition. It's in everyone's interest to find solutions with the private sector. But that prospect is jeopardised when IP is jeopardised," added Tauqir Ahmed.

The outgoing US Consul General Michael J Dodman and new CG Brain Heath were also invited to the roundtable. Participants thanked Michael J Dodman for his support to the American business community and officially welcomed Consul General Brain Heath to his new role.

It may be noted that the members of the ABC also comprise some of the most prominent business executives, managing amongst them the most prestigious businesses in Pakistan, most of which are Fortune 500 companies. ABC has 65 members with cumulative revenues of over US $4 billion and an investment of approx. US $780mn. The ABC members contribute a sizable amount to the national exchequer every year as direct and indirect taxes--last year the contribution was PKR 87 billion. The ABC member companies employed over 42,000 persons directly who support 170,000 dependants and indirectly employ well nearly one million people with their agents, distributors, suppliers, contractors, etc.

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PLP NEWS ALERTS EMAIL No. 192-2014 Copyright Business Recorder, 2014 PTI MNAs submit resignations to Speaker's office

August 23, 2014

Pakistan Tehreek-e-Insaf (PTI) on Friday submitted the resignations of its Parliamentarians to the Speaker's office of the National Assembly. PTI leaders Shah Mehmood Qureshi, Arif Alvi and Shireen Mazari submitted the resignations of PTI lawmakers to the Speaker of the National Assembly. Speaker Muhammad Ayaz Saddiq was not present in his office; however, Secretary National Assembly, Mohammad Riaz, received their resignations.

Well-placed sources in the National Assembly Secretariat told Business Recorder that resignations were present in a sealed envelope. They said resignations are in the custody of the Speaker National Assembly and he will unseal the PTI envelope on Monday. They said that they could not confirm the exact number of resignations. The party had earlier decided to resign from all assemblies except the Provincial Assembly Khyber Pakhtunkhwa which has a PTI government.

Talking to media, Shah Mehmood Qureshi said PTI Parliamentarians had submitted their resignations. He said the Speaker National Assembly was not present; however, he telephoned him and informed him about their decision. He said that the Speaker had left for Lahore due to his mother's illness. He said resignations were handed over to the Secretary National Assembly on the directives of Speaker.

He said there is no ambiguity about PTI resignations and we are bound to the decision of Core Committee of PTI. He said that only those PTI members had submitted their resignations who were available. According to him, two to three members of PTI are out of the country. Answering to a question, PTI leader said that Sheikh Rasheed is not a PTI member and that he would submit his resignation himself.

Answering another question, Qureshi said that his party is not against Constitution; and it considers a new transparent election as a way forward for democracy. He added that the party will take guidance from the Constitution, adding that the sit-in will not remain restricted to Islamabad. "We will stage sit-ins in the other major cities as well," the PTI leader said.

August 23, 2014

The rupee continued its decline versus the dollar on the money market on Friday, but it is most likely that the national currency may rebound in the near future, dealers said. The rupee dropped

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PLP NEWS ALERTS EMAIL No. 192-2014 by 55-paisa against the dollar for buying and selling at Rs 101.65 and Rs 101.70 respectively, they said.

INTERBANK MARKET RATES: OPEN MARKET RATES: The rupee also fell by 60- paisa in relation to the dollar for buying at Rs 101.30 and it also shed 55-paisa for selling at Rs 101.50. It lost 90-paisa versus the euro for buying and selling at Rs 134.00 and Rs 134.25, they said.

In the final Asian session, the dollar hovered just below its 2014 peak against a basket of major currencies, with bulls turning cautious ahead of a speech by Federal Reserve Chair Janet Yellen. The dollar index held steady at 82.144, having risen as high as 82.364 on Thursday - a level last seen in early September. The dollar was trading against the Indian rupee at Rs 60.43, the greenback was at 3.1625 versus the Malaysian ringgit and the US currency was available at 6.159 in terms of the Chinese yuan.

======Open Bid Rs 101.30 Open Offer Rs 101.50 ======Interbank Closing Rates: Interbank Closing Rates For Dollar on Friday. ======Bid Rate Rs 101.65 Offer Rate Rs 101.70 ======RUPEE IN LAHORE: The rupee declined against the major currencies including US dollar and British pound on the local currency market on Friday.

According to the currency dealers, the dollar resumed trading on a healthy note and kept on rising following fresh buying. At close of trading, the dollar was ended higher at Rs 101.00 and Rs 101.25 as its buying and selling rates against Rs 100.25 and Rs 100.50 of Thursday, respectively, the dealers said.

The Pak rupee also remained weak and was slide down against the pound sterling that was traded at Rs 166.25 and Rs 166.50 on buying and selling counters compared with day earlier closing of Rs 166.25 and Rs 166.50, respectively, they added.

RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar was strengthened by Re 1 against the rupee on the open currency markets of Islamabad and Rawalpindi here on Friday.

The dollar opened at Rs 101 (buying) and Rs 101.10 (selling) against last rate of Rs 100 (buying) and Rs 100.10 (selling). It did not observe further change in the second session and closed at Rs 101 (buying) and Rs 101.10 (selling).

Pound Sterling opened at Rs 166 (buying) and Rs 166.50 (selling) against same last rate. British currency did not observe any further fluctuation by the end of the day and closed on the same rates.

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PLP NEWS ALERTS EMAIL No. 192-2014 NHA asked to complete work on Lowari Tunnel in three years

August 23, 2014

Prime Minister Muhammad Nawaz Sharif Friday deplored the delay in long-awaited Lowari Tunnel project and directed National Highway Authority (NHA) to complete the project in three years. Presiding over a high level meeting at Governor House to review the pace of work on Lowari Tunnel, he assured the provision of funds for early completion of the project.

Expressing concern over delay, he said non-completion of the project in nine years was highly deplorable, adding the undue delay has also escalated the cost of project. Prime Minister Nawaz Sharif directed relevant authorities to review the project and immediately initiate the construction work and complete it by October 2017. He said it was very unfortunate that lack of attention on development projects resulted in huge financial loss to national exchequer.

It was informed during the meeting that 100 per cent work has been completed on 1.9 kilometres of the tunnel while 50 percent work has been carried out on rest of the 8.5 kilometres, said a press release issued by Press Information Department, Peshawar. Meanwhile, the Prime Minister during a briefing on Zarb-e-Azb operation and relief activities for the affected tribal people, expressed his satisfaction. He said the government stood by the Armed Forces and patriot tribal people who had rendered sacrifices for betterment and prosperity of the country.

Nawaz vowed that the government would utilise all available resources to facilitate the displaced people of North Waziristan. Khyber Pakhtunkhawa Governor Sardar Mehtab Ahmed Khan, Federal Minister for Information Senator Pervaiz Rashid, Finance Minister Ishaq Dar, Minister for Planning Ehsan Iqbal, Minister for Communications Abdul Hakim Baloch and Chief Secretary Khyber Pakhtunkhawa Amjad Ali were also present during the meeting.

August 23, 2014

The Federal Board of Revenue (FBR) has further extended the date for payment of sales tax, federal excise duty (FED) and filing of sales tax/federal excise returns up to August 27, for the tax period July 2014, for all registered persons. In this regard, the FBR has issued instructions to all Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) here on Friday.

Earlier, the Board had extended the date for payment of sales tax, federal excise duty (FED) and filing of returns up to August 22. Keeping in view the difficulties faced by taxpayers in return

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PLP NEWS ALERTS EMAIL No. 192-2014 filing, the FBR has further extended the date for payment of sales tax/FED and filing of sales tax returns up to August 27.

According to the FBR's instructions issued to all chambers of commerce and industry, the FBR has exercised powers under Section 74 of the Sales Tax Act 1990 and Section 43 of the Federal Excise Act, 2005 to extend the date for filing of monthly sales tax return forms and payment of sales tax/FED.

August 23, 2014

M RAFIQUE GORAYA

A 10-member Indian delegation of Indus Water Commission is arriving in Lahore on Saturday (today) to hold dialogue in accordance with the 1960 Indus Waters Treaty between the two countries. Pakistan's Indus Water Commission spokesperson said here on Friday that Indian commissioner will hold talks with his counterpart till August 27.

According to reports, Pakistani officials will raise questions before the Indian delegation regarding five controversial dams under construction in occupied Kashmir. The meeting agenda includes controversial design of Kishanganga Dam on Jhelum River and Pakistan's objection on four controversial electricity projects started by India on the Chenab River.

August 23, 2014

Based on a press briefing held on Thursday in SBP premises by the Acting Chief Spokesman, Dr Hamza Malik, a section of print media (not Business Recorder) has misquoted him about the future direction of SBP Policy Rate.

"SBP would like to clarify that nothing specific was mentioned about future direction of monetary policy in the press briefing. Inflation is only one variable that is considered while taking the monetary policy decision; there are many other variables such as the balance of payments position and economic activity that are also taken into account before reaching a final decision. "Moreover, it is important to understand that it is the SBP Board of Directors that is empowered to take monetary policy decisions after reviewing the rigorous and comprehensive analysis of both the current economic developments and outlook prepared by the SBP staff.-PR

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PLP NEWS ALERTS EMAIL No. 192-2014 Butt community asks Imran to apologize

August 23, 2014

The Butt fraternity has expressed immense grief and anger over its alleged character assassination during speeches by politicians at protest sit-ins in Islamabad. According to a private television channel, Gullu Butt, Pomi Butt and Billu Butt have become important enough to get space in the speeches of leaders of Pakistan Tehreek-i-Insaf (PTI) and Pakistan Awami Tehreek (PAT), yet the speeches are inciting grief and anger among the member of the Butt community.

In this regard, scores of masses from Lahore's Butt community staged a protest demonstration at Mall Road, Lahore and strongly condemned the use of foul language against them in Islamabad. They said, "We are peaceful people and if the propaganda against us is not stopped, all the Butts will march from Karachi to Peshawar".

August 23, 2014

Governor Punjab Choudhry Muhammad Sarwar telephoned Altaf Hussain, leader of Muttahida Quami Movement (MQM), and exchanged views on the current political crisis in the country. He informed Hussain about the efforts being made towards engaging Pakistan Tehreek-i-Insaaf and Pakistan Awami Tehreek in a dialogue. Hussain expressed his concerns on deadlock and stressed upon the need for resumption of talks.

August 23, 2014

The Election Commission of Pakistan (ECP) is required to hold by-election within 60 days if any parliamentarian resigns from the National Assembly, an official of ECP said. The by-election is a constitutional and lawful process and the institution has to follow it. The ECP stated that the commission is responsible for conducting free and fair election and 90 days are required for the election if assemblies are dissolved.

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PLP NEWS ALERTS EMAIL No. 192-2014 Militant attack from Afghanistan kills FC man

August 23, 2014

A paramilitary soldier was killed in an exchange of fire with militants who entered Pakistani territory from Afghanistan on Friday, the military said. The incident happened in Muslam Bagh sector in Balochistan near the Afghan border. "About 70 to 80 terrorists intruded from (the) Afghanistan side into Pakistani territory," the military said in a statement. It added Pakistani troops stopped the intruders but during the exchange of fire a paramilitary Frontier Corps (FC) soldier was killed.

Taliban militants from Afghanistan routinely intrude into Pakistani territory near the border in the north-west and attack military check posts and their opponents, souring diplomatic ties between Islamabad and Kabul.

August 23, 2014

The chairman of banking giant HSBC warned on Friday that uncertainty over the economic future of Scotland could lead to "capital flight" if it votes to leave the United Kingdom next month. Writing in British daily The Telegraph, HSBC head Douglas Flint said the currency union with England was an "anchor" for Scotland's stability and leaving it "would be complex and fraught with danger".

Flint, himself a Scot, is the most high-profile business leader to speak out against Scotland leaving the United Kingdom before the September 18 vote. "Uncertainty over the Scotland's currency arrangements could prompt capital flight from the country, leaving its financial system in a parlous state," he wrote in the newspaper. Currency has been a major part of the debate, with the Scottish government saying it would seek to remain part of a formal currency union even as a separate state. Westminster has ruled out such a deal. A poll published this week found that the majority of English people oppose Scotland continuing to use the pound if it votes to become independent.

If Scotland does back independence, it could also choose to set up its own currency, attempt to join the euro or continue to use sterling without the Bank of England as lender of last resort. "In all these circumstances, the transition from the existing currency union would be complex and fraught with danger," said Flint.

Introducing a new currency "would be an enormous challenge for an independent Scotland" and

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PLP NEWS ALERTS EMAIL No. 192-2014 it would take "many years for the country to establish its credibility," he said. Choosing an informal link to sterling would also place "enormous pressure" on Scotland's finances and leave it with no room to manoeuvre in times of trouble, he said. "In all of these scenarios, Scotland's borrowing costs and those of its businesses and consumers would rise - at least in the near term," Flint added. Flint reportedly donated £25,000 ($41,500, 31,200 euros) to the campaign for a united Britain last year.

August 23, 2014

Kiev accused Moscow of invading as Russia unilaterally drove a mammoth aid convoy across war-torn east Ukraine on Friday and warned against any attacks on the trucks. The European Union said it "deplored" Russia's decision to order in the convoy without consent and called on Moscow to withdraw the trucks. Scores of white lorries snaked across rebel-held territory after Moscow abruptly called time a week of haggling with Kiev, despite Red Cross officials refusing to provide an escort because of security concerns.

"This is a direct invasion," the head of Ukraine's security service, Valentyn Nalyvaychenko, was quoted by news agencies as saying. But he said Ukraine will not order air strikes on the trucks. Ukraine's foreign ministry however claimed that separatist fighters were shelling the convoy's possible route to the rebel bastion of Lugansk some 63 kilometres (40 miles) away and could be planning a "provocation". Ukraine and Russia both said the other side was responsible for the convoy's security, and Russia's foreign ministry warned "against any attempts to disrupt a totally humanitarian mission". "We are doing everything in our power for this not to result in more serious consequences," Ukrainian President Petro Poroshenko said. Russia has been pressing Ukraine to let its cargo reach residents in the stricken region of eastern Ukraine but Kiev and the West fear the trucks could be used to bolster a flagging pro-Russian insurrection. Russia insists it just wants to get urgently needed assistance to besieged residents who have been without water and electricity for weeks. Moscow said it was ready to have Red Cross officials accompany the convoy, but the organisation said it had backed out of the operation because of fierce fighting raging in the area where the trucks are heading.

"We are not part of the convoy in any way," Victoria Zotikova, the Red Cross spokeswoman in Moscow, told AFP, adding that they have not received "sufficient security guarantees". Monitors from the Organisation for Security and Co-operation in Europe at the border said over 130 trucks had crossed by the afternoon. Nearly 300 trucks driven by men in identical beige clothes had been waiting for the green light to cross since arriving at the border over a week ago. Ukraine's border service said its officials were "blocked" at the Russian checkpoint as the convoy started rolling across the border and had not checked many of the trucks.

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PLP NEWS ALERTS EMAIL No. 192-2014 70 killed at Iraq Sunni mosque attack

August 23, 2014

Shia militiamen gunned down 70 people in an apparent revenge attack at an Iraqi Sunni mosque Friday, dealing a blow to government efforts to regain territory seized by jihadist-led militants. The shooting in the Hamreen area of Diyala province will increase already significant anger among Iraq's Sunni Arab minority with the Shia-led government, undermining an anti-militant drive that ultimately requires Sunni co-operation to succeed.

It came as government forces battled to regain ground in Diyala, and Washington warned of the dangers of the Islamic State (IS) jihadist group, which spearheaded an offensive that overran swathes of Iraq in June, and this week released a video of American journalist James Foley being beheaded.

August 23, 2014

Argentina lashed out Friday at the US judge blocking it from servicing its debt, saying he was "ignorant" of democratic institutions after he branded its move to pay bondholders against his orders illegal. The Argentine government has asked Congress for authority to repay creditors in Buenos Aires instead of New York to circumvent a court order by US District Judge Thomas Griesa that has forced the country into its second default in 13 years.

August 23, 2014

Acclaimed Indian writer Udupi Rajagopala-charya Ananthamurthy, famed for his novels and poems, died Friday at the age of 82 from renal failure. Ananthamurthy, who wrote in the southern regional language known as Kannada, died in hospital in the high-tech city of Bangalore after being put on life-support when his kidneys failed. He "did not recover from renal failure", a Manipal Hospital spokesman told reporters.

Tributes poured in for the author whose works were celebrated for their insight into human psychology. The white-bearded socialist courted controversy last year when he vowed to leave India if firebrand Hindu hawk Narendra Modi became prime minister and later called him a "bully" in a newspaper interview. Modi, who took charge as Indian premier after a landslide election victory in May, expressed his sorrow on Twitter over Ananthamurthy's death. "U.R.

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PLP NEWS ALERTS EMAIL No. 192-2014 Ananthamurthy's demise is a loss to Kannada literature. My condolences to his family. May his soul rest in peace," Modi said.

August 23, 2014

The Karachi share market witnessed another lacklustre session amid thin trading on the last trading day of the week Friday. The benchmark KSE-100 index moved slightly up by 7 points to close at 28,872 points compared to 28,865 points Thursday. "Stocks closed higher amid thin trade on cautious activity in the corporate earnings announcement session after the Senate approved resolution affirming supremacy of the constitution and the parliament," said Ahsan Mehanti, an analyst at Arif Habib.

Pressure on the rupee, falling forex reserves and the State Bank's concerns on political turmoil negatively impacted the sentiment, he added. Strong earning announcements and expected ease in circular debt following tariff rationalisation measures for release of the IMF tranche amounting to $550 million next month played a catalytic role in the bullish activity, Mehanti mentioned. Fahad M Ali, analyst at JS, said another lacklustre session was witnessed at the bourse on Friday where KSE benchmark index remained rangebound during both the trading sessions.

He said investors remained cautious as weekend approaches and no progress has been made to resolve the current political crises. "It is being expected that investors may keep a cautious approach and start taking positions as soon as negotiations between the political parties take a positive turn," he added.

During the intra-day trading, the market moved in red and green zones and the index touched 29,022 points highest and 28,815 points lowest level. A large number of investors remained reluctant to trade in the current situation, with the result the volume at the ready counter declined to 68 million shares compared to 152 million in previous session. With an increase of Rs 10 billion, market capitalisation reached Rs 6.760 trillion against previous Rs 6.750 trillion. Trading took place in 318 companies, of which 152 closed in green zone, 139 in red, while 27 companies remained stayed put.

Among top 10 volume leaders, six companies recorded a positive trend. Pak Elektron Ltd emerged volume leader with 11.77 million shares, gaining Re 0.74 to close at Rs 29.87. B.O.Punjab stood second at Rs 8.04 on 5.3 million shares. Maple Leaf Cement ranked third with 3.5 million shares at Rs 27.37, up Re 0.01. With a trading volume of 2.9 million, Avanceon lost Rs 1.11 to Rs 25.46. Fauji Cement fell by Re 0.05 to close at Rs 18.89 on 2.3 million shares. With 2 million shares, Ghani Automobile closed at Rs 4.09, up Re 0.24. Engro Fertilizer moved up by Re 0.08 to Rs 53.77 on 1.9 million shares. K-Electric Ltd fell by Re 0.04 to Rs 6.99 on 1.7 million shares.

With a trading volume of 1.6 million shares, Fauji Fert gained Rs 1.64 to close at Rs 112.90. TPL Trakker Ltd closed at Rs 9.45, up Re 0.68 on 1.5 million shares. Rafhan Maize SPOT and

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PLP NEWS ALERTS EMAIL No. 192-2014 Nestle Pak were the top gainers with Rs 250.50 and Rs 220.00 to close at Rs 10,975.50 and Rs 7,500.00, respectively. Shezan Inter and Services Ind Ltd were the top losers with Rs 38.70 and Rs 26.23 to close at Rs 906.30 and Rs 602.88, respectively.

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PLP NEWS ALERTS EMAIL No. 192-2014 Business and Economy: Pakistan CA posts $454 million deficit in July

August 23, 2014

The country's current account deficit rose by 263 percent during the first month of this fiscal year, mainly due to higher imports and slow foreign inflows. Economists said current account balance continues to deteriorate as goods trade deficit aggressively widened during July 2014 because of higher imports and decline in exports. They said deterioration in CA balance is not good for economy as the government is required to spend millions of dollars every month to finance this deficit.

In the past rising current account deficit forced Pakistan to rejoin the International Monetary Fund (IMF) programme, they added. "We believe that the government urgently required taking some steps to curtail the rising current account deficit," they added. The federal government has already estimated billions of dollars foreign inflows on account of privatisation, auction of dollar-denominated Sukuk and Eurobonds. The government can curtail the rising current account deficit with timely maturity of these expected inflows, they suggested.

The State Bank of Pakistan Friday revealed that CA balance posted $454 million deficit in July 2014 compared to $125 million in July 2013, depicting an increase of 263 percent or $329 million. Cumulative deficit of trade, services and income stood at $2.352 billion in the first month of FY15 against $1.703 billion in the same period last fiscal year.

During the period under review, goods trade deficit widened by 51 percent. The country's goods trade posted a deficit of $1.9 billion with $1.9 billion exports and $3.8 billion imports in July 2014 compared to $1.27 billion deficit with $2.19 billion exports and $3.44 billion imports in July 2013. Service sector deficit stood at $275 million with $328 million exports and $603 million imports in first month of FY15. Similarly, income deficit also mounted to $186 billion as its inflows stood at $40 million while outflows $226 million in July 2014.

August 23, 2014

The Punjab government on Friday approved six development schemes of different development sectors with an estimated cost of Rs 12,649.129 million. These schemes were approved in the seventh meeting of Provincial Development Working Party of current fiscal year 2014-15 presided over by the Punjab Planning and Development Board Chairman, Muhammad Irfan Elahi.

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PLP NEWS ALERTS EMAIL No. 192-2014

Provincial Secretary P&D Waseem Ajmal Choudhary, members of the Planning & Development Board, Provincial Secretaries concerned and other senior representatives of the relevant Provincial Departments also attended the meeting. According to P&D spokesman, the approved development schemes included:

1. Construction of Canal Express Way from Gatt Wala Bridge to Sahian Wala (M-3) Interchange, Faisalabad (Length=24.50 Km) at the cost of Rs 6186.774 million,

2. Project for Energy Saving in Water Supply System in Lahore (Energy Saving through Replacement of Inefficient and Outlived 105-Tubewells in WASA, Lahore) at the cost of Rs 2584.4 million,

3. Improvement of Traffic Management Capacity in Lahore Central Area at the cost of Rs 188.4 million,

4. Lahore Ring Road (Package-14) Construction of Road Portion from Ghazi Road Intersection to Bedian Road Intersection at the cost of Rs 1977.680 million,

5. Construction of Road over Eastern Flood Protection Bund, Jampur length 14.75 km, DG Khan at the cost of Rs 734.236 million and

6. Construction of Concert Silos 100,000 M Tones Capacity at the cost of Rs 977.639 million.

August 23, 2014

Millat Industrial Estate Association (MIEA) rejected the controversial load management plan of FESCO terming it unacceptable as it is a deep-rooted conspiracy to shatter the strength of industrial sector by dividing it into two categories.

Addressing a meeting to discuss this load management plan in a meeting held here on Friday, Muhammad Akram Zia Chairman MIEA said government is totally arrogant towards the problems of industrial sector as any increase in load shedding is being diverted to industries without considering its ill impacts on economy, exports, revenue collection and foreign exchange earning.

He said load shedding of electricity has made it difficult to run the industrial wheel profitably. He mentioned the month of Ramazan when on the pretext of providing relief to Fasting Muslims at the time of Sehar-o-Iftar, the electricity supply to the industrial sector was trimmed. Immediately after this a unilateral decision was made to further increase the load shedding for industrial sector up to 10-11 hours. He said all these decisions were taken without taking concerned stakeholders in to confidence and hence industrialists are forced to close down their

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PLP NEWS ALERTS EMAIL No. 192-2014 units immediately after last Eid. However, on behalf of Chief Minister Punjab, the District Coordination Officer Faisalabad assured to withdraw this decision and continue electricity supply to industrial sector as usual. The FESCO authorities have also been assured that electricity supply to industrial sector will be increased as situation improved. He said on this assurance, the industrial sector deferred its protest closure. He lamented that now once again, the FESCO has chalked out a load management plan by dividing industrial sector into two categories.

He rejected this plan and alleged that it is a deep-rooted conspiracy to divide the industrial sector and said this discrimination amongst the same sector would also be the clear violation of Supreme Court ruling. Muhammad Akram Zia warned FESCO authorities to desist from taking any unilateral decision without consulting the stakeholders on this important issue. He further warned that in case FESCO implemented this controversial plan, the industrialists would be forced to close down their units in protest and this situation would not only increase unemployment but also aggravate the prevailing political turmoil. Syed Zia Alamdar Director FESCO BOD was specially invited and informed of the grave situation industrial sector is facing due to the acute shortage of energy.

August 23, 2014

A few thousand people have inflicted colossal loss to the national economy and created problems for millions of people in addition to hatching a deep rooted conspiracy against democracy by insisting on illogical, unlawful, un-democratic and un-constitutional demands. The time has now come that the business community should rise up against all such unconstitutional acts and vowed to fully support the constitution and democracy in Pakistan.

These views were expressed by Engineer Suhail Bin Rashid, President, Faisalabad Chamber of Commerce and Industry. He was critical of the unprecedented economic loss to the national economy and said that a few thousand people have virtually hijacked the civil life in addition to choking entire economic activities in the country. He said that the Government despite of masses support has adopted extreme restraint but on the other side, few thousand people have made the lives of common people miserable in their lust for political power.

He said that despite of Government restraint, the arrogant and adamant political and religious leaders failed to win the masses heart but they continued to create problem for them one after another. He said that everyone is condemning the un-constitutional and un-democratic demands of the protesters. He clarified that millions of people have given a clear mandate to Mian Nawaz Sharif but in order to avoid clashes, they are silent but it does not mean that a few hundred people could hijack the democratic order by resorting to protestation on roads instead of discussing these issues at the elected forums of Assemblies.

"There is no difference between Taliban and these so-called political activists who want to

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PLP NEWS ALERTS EMAIL No. 192-2014 enforce their demand by way of arm twisting", he said. He said that people of Pakistan are fully ready to foil any conspiracy against democratic Government. In this connection, he also quoted statements of US Foreign Office and European Union that Nawaz Sharif was a constitutional Prime Minister who was duly elected for a period of five years through transparent, fair and free elections.

He said that the defeated elements have no right to create problem for the masses by resorting to such protestation and sit-ins and warned that the silent majority will give a befitting response if a minority continued its strategy to create problems for the people and national economy.

August 23, 2014

Educated youth should preferably start their own businesses instead of wasting their time and energy in search of jobs, said Riaz-ul-Haq, senior vice president of Faisalabad Chamber of Commerce and Industry (FCCI). He was addressing the concluding session of a one-day training program for Start-ups and Management of Retail/Distribution Businesses.

It was jointly organized by FCCI and SMEDA (Small and Medium Entrepreneurs Development Authority), he appreciated the SMEDA for organising a series of training programs and workshops to equip youth with business related skills and expertise and said the FCCI was also organising meetings and seminars for the orientation of its members on different subjects and challenges. He said the FCCI has inked memorandum of understandings (MoUs) with all the six universities housed in Faisalabad. The objective of the MOUs is to further strengthen industry- business-academia linkages for the benefit of the national economy. Riaz-ul-Haq said the FCCI was regularly inviting eminent business tycoons to deliver lecture and share their experience with FCCI members. It will encourage the young and new entrants in the field of business to work hard and expedite their efforts feverishly to follow the footprints of important businessmen. He asked the participants of the program to get their National Tax Number (NTN) and become FCCI members to fully participate in the business related activities organized by the chamber.

August 23, 2014

The Karachi Port handled 167,707 tonnes of cargo comprising 139,572 tonnes of import cargo and 28,135 tonnes of export cargo including 4,722 loaded and empty containers during the last 24 hours ending at 0700 hours on Friday. The total import cargo of 139,572 tonnes comprised of 36,716 tonnes of containerised cargo; 36,052 tonnes of bulk cargo: 24,800 tonnes of coal; 11,252

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PLP NEWS ALERTS EMAIL No. 192-2014 tonnes of rock phosphate and 66,804 tonnes of oil/liquid cargo.

The total export cargo of 28,135 tonnes comprised of 20,035 tonnes of containerised cargo; 2,800 tonnes of talcum powder and 5,300 tonnes of oil/liquid cargo. As many as 4,722 containers comprising 2,768 containers import and 1,954 containers export were handled during the last 24 hours on Friday. The break-up of imported containers shows 798 of 20's and 962 40's loaded while 18 of 20's and 14 of 40's empty containers, whereas that of exported containers shows 554 of 20's and 211 of 40's loaded containers while 212 of 20's and 383 of 40's empty containers were handled during the business hours.

There were two ships namely Northern Prelude and Niara carrying containers respectively sailed out to sea during the reported period. There were five vessels viz. Xin Huang Pu, APL Sokhna, Alyarmouk, Osam Jumbo-5 and Bofors carrying containers, oil tankers and tugs respectively currently at the berths. There are four ships namely Xin Huang Pu, Alyarmouk, Bunga Alamanda and BW Danube carrying containers and oil tankers expected to sail on Saturday.

There was one vessel viz. Intisar carrying oil tanker due to arrive on Friday, while eight vessels viz. Kota Teguh, Santa Rosa, Bon Atlantico, Sichem Defince, Spring Sunshine, Galaxy Ace, Unik and Hua Rong-1 carrying containers, oil tankers, DAP, vehicles, steel and soyabean meal are due to arrive on Saturday.

PORT QASIM

A cargo volume of 94,701 tonnes comprising 64,947 tonnes of import cargo and 29,754 tonnes of export cargo inclusive 3,416 loaded and empty containers (TEUs) was handled at Port Qasim during the last 24 hours on Friday. The total import cargo of 64,947 tonnes includes 6,410 tonnes of furnace oil; 13,368 tonnes of palm oil; 5,019 tonnes of chemical; 5,000 tonnes of rape seed and 35,150 tonnes of containerised cargo.

The total export cargo includes 29,754 tonnes of containerised cargo. As many as 3,416 containers comprising 1,850 containers import and 1,566 containers export were handled during the last 24 hours on Friday. There was one ship namely MV STX Eastern with chemical sailed out sea on Friday morning, while two more ships namely CV Dubai Express and MT Feng Hai-10 with containers and palm oil are expected to sail on the same day afternoon.

A total number of six vessels viz. CV Safmarine Ngami, CV Dubai Express, MV Vinalines Global, MV STX Eastern, MT Feng Hai-10 and MT Taurus currently occupied berths to load/offload containers, rape seed, chemical, palm oil and furnace oil respectively during the last 24 hours. As many as three ships namely Rio Brave, Ince Ilgaz and Leader with containers, rape seed and diesel oil are currently at the outer anchorage of Port Qasim.

There are three vessels viz. CV Marhta Schulte, CV Rio Brave and MV Inlaco Brave carrying containers and soyabean seed expected to take berths at Qasim International Containers Terminal and Grain & Fertilizer Terminal respectively on Friday. There is one ship namely CV MSC Yokohama with containers due to arrive on Saturday, while another ship namely CV MSC Los Angeles with containers is due to arrive on Sunday.

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PLP NEWS ALERTS EMAIL No. 192-2014 Copyright Business Recorder, 2014 CM Sindh asks KMC to bring 36 buses to road by September 2

August 23, 2014

Sindh Chief Minister Syed Qaim Ali Shah has directed the management of KMC to bring the fleet of 36 buses on road by September 2. The Sindh CM has also asked the provincial Transport Department to complete all codal formalities of yellow line bus service by December 1, so that this project could be made functional by the end of 2015 under PPP mode of investment.

He directed while presiding over a meeting regarding implementation of mass Transit Programme at CM House, said a statement on Friday. He also directed the management to expedite the working on intercity bus project to connect at least all the divisional head quarters to Karachi by plying 100 buses at initial stage of this project.

The CM Sindh directed the planning and development department to get the PC-I of Green Bus Line completed and submitted to federal government within one month time, so that Transport facilities should be ensured to the people of Karachi within shortest possible time. He directed the management to take Orange Line Bus Service in hand with immediate effect for which Rs 3 billion had been projected in the current budget.

Expressing his dismay over concerned officers of KMC for not bringing the KMC buses on road as announced earlier, the CM Sindh said Sindh Government had invested a huge amount on the repair and reconditioning of KMC buses. Those buses were supposed to be on road before Eid- ul-Fitr but due to slackness of officers and due to little bottlenecks/ excuses, all the technically prepared/ fit buses were standing on one hand while the people of Karachi were facing transport difficulties on the other hand, he added. He directed the officers to bring the buses on road by September 2, 2014 positively, and also expedite the working for early implementation on Karachi mass transit programme.

He also warned that any cell or part of a government department, or organisation which was not performing up to satisfaction should be disbanded. He said PPP was the party of poor people to whom it was committed to provide at least all basic but qualitative facilities. The CM Sindh said that in addition to Green Bus Line of Federal Government, Sindh Government was going to launch Yellow Line bus service at an estimated cost of Rs 12 billion with PPP mode of investment and directed the officers to complete its codal formalities and ensure its ground breaking ceremony by December 1, 2014 so that it could be completed by the end of 2015.

The CM Sindh directed the ACS (P&D) that in addition to working for implementation on the KCR project, substitute projects should also be proposed with the consultation of federal government so that this matter could be decided once for all. The CM Sindh expressed his satisfaction over the proposed intercity bus project under which 358 buses would be plied on nine identified bus routes in the city to facilitate at least 385,000 commuters per day.

He directed the officers to showcase the project for the foreign investors as many foreign BACK TO HEADLINES Page 30

PLP NEWS ALERTS EMAIL No. 192-2014 investors were taking keen interest in investing in Karachi. Secretary Transport Tauha Ahmed Farooqui, while briefing the meeting, said that Nespak consultants had been assigned to prepare the PC-I of Green Line Bus Services and it was almost ready and was to be submitted to P&D within 8 to 10 days for onward transmission to the federal government.

Similarly, the technical proposals submitted by 11 interested investment companies for implementation on Yellow Line Bus Service have been opened on August 21, and same were being evaluated. This whole process including financial bids from interested companies be evaluated and completed within two to three months. Besides, working on intercity project has also matured and very soon the management will be able to launch the project.

He gave an assurance to the Sindh CM that working on Orange Line bus service which was proposed to run from Orangi Town to the Matric Board Office would be completed within shortest time so that available amount of Rs 3 billion could be utilised and the people of Karachi be facilitated.

Sindh Minister for Transport Mumtaz Jakhrani, Advisor to CM Syed Murad Ali Shah, Chief Secretary Sindh Sajjad Saleem Hotiyana, Additional Chief Secretary (P&D) Mohammad Wasim, Secretary to CM Alumdin Bulo, Secretary Transport Tauha Ahmed Farooqui, Secretary Finance Sohail Rajput, Commissioner Karachi Shoaib Siddiqui, Administrator KMC Rauf Akhtar Farooqui, Director Karachi Mass Transit Cell Fazal Karim Khatri and other officers attended the meeting.

August 23, 2014

Civil Aviation Authority (CAA) Director General Air Marshal Muhammad Yousaf (Retd) visited Allama Iqbal International Airport and Hajj Terminal along with Airport Manager Rashid M Hussain to inspect the preparation level of terminal services/facilities for the Hajj pilgrims, including the standard of cleanliness and services. CAA has this time upgraded Hajj Terminal by replacing outdated/outlived facilities with installation of 32 ton new air conditioning units, power generators, new floor tiles and provision of new furniture, disclosed a CAA's spokesperson here on Friday.

The CAA Director General also inspected drinking water facility, medical and food points, WIFI internet, porter service, wash rooms, prayer areas, car park beside the ongoing state-of-the-art uplifting work at Hajj Terminal. He directed the CAA officers to ensure provision of complimentary services, proactively, to senior citizens, needy/old aged pilgrims travelling through the airport and further directed to ensure maximum facilitation by utilisation of available resources to enhance the passengers comfort and convenience.

He also reviewed the passengers' complaint and feedback system and emphasised on the officers to accord top priority in resolving the passenger problems. He further directed that all

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PLP NEWS ALERTS EMAIL No. 192-2014 stakeholders, including ASF, ANF, immigration, customs, health and airlines, must render best services by mutual liaison so that extraordinary aviation facilities should be provided to the passengers and pilgrims.

August 23, 2014

High Commissioner Designate to Australia, Mrs Naela Chohan said some Australian companies are interested in investing in the Halal Food Market and want to enter the Middle Eastern region through Pakistan. This would be beneficial for both the countries and Pakistan would be able to attract more countries for Halal Food Processing.

She was talking to Punjab Board of Investment and Trade (PBIT) high-ups during her visit to PBIT where she was warmly welcomed by Chief Executive Officer, Mohammad Ilyas Ghauri. On this occasion, she was also given a presentation on the core functions and working of PBIT and the priority sectors that are in focus in Punjab.

The High Commissioner Designate said she will be working on image building of Pakistan, mainly, Trade and Export Promotion of Pakistan to Australia. CEO PBIT extended PBIT's full support and services to Mrs Naela Chohan in facilitating the Halal Food Exhibition in Pakistan to attract Australian companies. Industrialists from Sialkot Chambers of Commerce and Industry briefed Mrs Chohan about the potential of exporting sports and surgical goods to Australia. The meeting ended with the exchange of souvenirs.

August 23, 2014

A lack of interest, information and prevalence of stereotypes about Russia have kept Pakistani exporters away from entering Russian market, said Chairman, Pakistan-Russian Business Council of FPCCI, Muhammad Farooq Afzal.

The Russian Government's decision to ban fruit, vegetable, meat, fish, milk and dairy products from United States of America, European Union, Australia, Canada and other countries that have imposed sanctions on Moscow offers a great opportunity for Pakistani exporters to enter Russian food market. In the wake of the imposed sanctions on Russia in late 1998, the resultant financial crisis and Russian debt default also, Pakistan could have become a major exporter of kinnow,

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PLP NEWS ALERTS EMAIL No. 192-2014 mango, potatoes, rice, processed food and fruit juices there, Chairman,

Pakistan-Russian Business Council of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said in a statement here on Friday. The Chairman, Pakistan-Russian BC, mentioned that it was precisely around that time Europeans, Americans and even Chinese moved back and captured the Russian market.

He said that a visit to any supermarket in a Russian city will show how much the country depends on imported food. It would be very difficult for one to find anything of Pakistani origin except kinnow and certain specie of rice. The PRBC can help Pakistani exporters of food products in finding space in Russian market. Many members of PRBC in the Russian capital have their counterparts and have a great degree of expertise about the complex market. For Pakistani food products to do well in Russia, a combination of good marketing and attractive packaging is a must along with quality products.

PRBC has worked out a strategy to export 8 items that Russia usually buys from the US and European Union. These include fruit, vegetable, sports items, sports garments, leather garments and pharmaceutical and textiles etc, said M. Farooq Afzal.

Russia imports food products from UK, USA and EU worth dollars 10 billion and the Asian countries especially Indian firms are rushing towards Russian market to fill the gap, he said. He suggested to Pakistan food exporters to fully participate in Russian food exhibitions in major cities of that country coupled with a combination of good marketing and attractive packaging along with quality products.

August 23, 2014

Provincial Development Working Party meeting (PDWP) has approved the mega project of Canal Express Way at a cost of Rs 6 billion and execution on this project would be started very soon by the City District Government Faisalabad. This was informed by DCO Noorul Amin Mengal during a news briefing. He said that comprehensive and effective presentation pertaining to the significance and importance of the project was given in the Provincial Development Working Party meeting and it agreed with the presentation and approved the project.

Giving details of the project DCO said that Canal Express Way was a first ever mega project in the history of Faisalabad which would bring a revolution in the economic and social sectors. He said that 24 km dual carriage Canal Express Way would be a signal free road which would start from Sahianwala Interchange M-III Motorway up to Gatwala Chowk.

The two flyovers at Railway Crossing and Khurrianwala Jhumra road would also be constructed besides providing underpass at Gatwala chowk under this project, he maintained. The DCO said that signal free travel facilities would be provided from Sahianwala Interchange to Samundri

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PLP NEWS ALERTS EMAIL No. 192-2014 road and another underpass would also be constructed at Jhal Khanuana chowk Samundri road. He said that the huge investment in industrialisation was expected due to Canal Express Way as it was adjacent to mega M-III Industrial Estate.

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PLP NEWS ALERTS EMAIL No. 192-2014 Taxation: Pakistan Procedure amended: importers authorised to examine goods

August 23, 2014

MUHAMMAD ALI

The customs department has authorised importers or clearing agents to examine goods for themselves in the presence of the relevant officers, who are now only responsible for supervising de-sealing of containers; it is learnt here on Friday. Sources said that customs department in order to facilitate the trade and to streamline the procedure with regard to permission to importer or his authorised clearing agent for prior examination in terms of 1st proviso to sub-section (1) of section 79 of the Customs Act, 1969, made amendments to the procedure.

They said that importers or authorised clearing agents were now required to file a written request including personal details in the WeBOC system to the additional collector of the relevant Wharf/Terminal operator1st proviso to sub-section (1) of section 79 of the Customs Act, 1969 for examination of imported goods by himself prior to filing of goods declaration.

Subsequently, competent officers will verify the veracity of the documents including bill of lading, IGM, etc, before approving examination request submitted by importers or authorised clearing agents under the aforesaid section. Moreover, sources said terminal operators had also been directed to ground containers immediately after receiving go-ahead from competent officers for examination. Sources said importers or authorised clearing agents shall then examine goods for themselves in the presence of the officers, supervising the de-sealing.

They said the customs department had now restricted deputed officers to verify the list of goods produced by importers or authorised clearing agents. Consequently, after completion of the examination, importers or authorised clearing agents will be required to file goods declaration within 48 hours to process it in the WeBOC system. Sources said if any discrepancy was detected by assessment officers in the goods declaration, importers or authorised clearing agents shall be penalised under the relevant provisions of law.

August 23, 2014

The Federal Board of Revenue (FBR) has said that sales tax refunds of the dairy sector up to July 1, 2014 would be processed in view of the legal status raw/unprocessed milk enjoys, which is a

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PLP NEWS ALERTS EMAIL No. 192-2014 sales tax zero-rated item under SRO.549(1)/2008 and SRO.570(I)/2013. Official sources told Business Recorder here on Friday that the FBR has issued a sales tax clarification regarding refund of input tax by dairy farmers.

The Regional Tax Office-II (RTO) Lahore has received refund claims of the dairy farmers and sought clarification from the FBR for further processing the refund claims. Till July 1 2014, the dairy farmers have to fulfil conditions of the said notification for claiming refunds. The conditions of the relevant notifications have to be fulfilled by the dairy framers claiming refunds up to July 1, 2014.

Official said that the zero-rating facility is only available to the taxpayers having status of manufacturers. Now the milk has been shifted to the Fifth Schedule of the Sales Tax Act, 1990. According to the FBR's clarification, the raw/unprocessed milk is a sales tax zero-rated item and listed among the zero-rated items in SRO.549(1)/2008 dated 11.06.2008 as well as in SRO.570(I)/2013 dated 18.07.2013.

The FBR said that it is correct that "agricultural produce of Pakistan, not subjected to any further process of manufacture" is exempt from sales tax in terms of Serial No 10 of Table II of the Sixth Schedule to the Sales Tax Act, 1990 read with section 13(1) ibid. However, the crux of the present issue is whether the supply of raw/unprocessed milk is to be treated as agricultural produce of Pakistan or not. It is noted that in the original Sixth Schedule (inserted in 1990) "fresh and dried milk, whether or not packed for retail sale" appeared separately against Serial No 3 while "agricultural produce of Pakistan not subjected to any further process of manufacture" was separately granted exemption under Serial No 2. This separate treatment of milk from "agricultural produce" continued till 2006 when the entry "fresh, liquid and dried milk, without addition of sugar or any other sweetener matter whether packed or Not" was omitted by the Finance Act, 2006 and was zero-rated through a notification. It is a basic axiom of interpretation of statutes that redundancy of surplus age cannot be attributed to the legislature. As such it is clear that for the purpose of the Sales Tax Act, 1990 "milk" is treated separately form "agricultural produce," the FBR said.

The FBR further clarified that it is also observed that the term "agricultural produce" is not defined in the Sales Tax Act, 1990. However, section 41 of the Income Tax Ordinance, 2001 defines agricultural income as income derived by a person from land situated in Pakistan and used for agricultural purposes and thus clearly considers agriculture in the context of cultivation of crops. The Supreme Court of Pakistan in PLD 1959 SC 453 held that the term 'agriculture" as used in the Income Tax Act, 1922 was narrowly restricted to the cultivation of soil. As such, income from dairy farming is not considered as agricultural income under income tax law.

It is also observed that for the purpose of sales tax applicability, the process of manufacturing is not mandatory. Under Section 3 of the Sales Tax Act, 1990, the charging section, imposes sales tax on imports and supplies of "goods", not "manufactured goods". For this reason, sales tax is chargeable on the imports and supplies of a number of un-manufactured goods, and exemption has been granted in the Sixth Schedule even to live animal, fish, vegetables, fruit, etc.

It is confirmed that raw/unprocessed milk also falls under PCT Heading 04.01, which was listed among the zero-rated items in SRO.549(1)/2008 dated 11.06.2008 as well as in SRO.570(I)/2013 dated 18.07.2013. The PCT Heading 04.01 of Pakistan Customs Tariff covers milk and cream, not concentrated nor containing sugar or other sweeteners, the FBR maintained.

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PLP NEWS ALERTS EMAIL No. 192-2014

In view of the said sales tax clarification of the FBR, the concerned RTO has been advised to process and dispose of the pending refund claims of registered dairy farms against supplies of zero-rated milk on merit and in accordance with law, the FBR added.

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PLP NEWS ALERTS EMAIL No. 192-2014 Cotton and Textiles: Pakistan Cotton market: rising rates likely to fall in near future

August 23, 2014

Prices maintained upward march on the cotton market on Friday but it is expected that rates likely to decline because it looks that temperature on political front coming down and the rupee would also manage to find it's realistic level versus the dollar, as well, dealers said.

The official spot rate was up by Rs 100 to Rs 5500, they added. In ready session, around 17,000 bales of cotton changed hands between Rs 5550-5700, they said. However, in Sindh, prices of seed cotton low type lost Rs 100 to Rs 2500 and superior variety fell by Rs 125 to Rs 2525 and in Punjab prices were lower by Rs 50 to Rs 2600 and Rs 2650, they said. Some dealers said that during the last several sessions, mills and exporters covered their forward buying, particularly, some buyers attracted by dollar's rate.

Cotton analyst, Naseem Usman said that political uncertainty likely to ease in times to come and most likely dollar's value may also decrease, these factors may bring prices down on the cotton market. According to reports, India's cotton output in the new season beginning October is expected at 39.63 million bales on a likely record acreage, but the figure is slightly lower than the previous year. India, the world's second-largest cotton grower, produced 40 million bales of the fibre in the 2013/14 crop year, according to the Cotton Association of India (CAI).

Reuters adds: Cotton futures notched a slight gain on Thursday as technical strength and dry weather in Texas buoyed. The benchmark December cotton contract on ICE Futures US closed up 0.11 cent, or 0.2 percent, at 65.92 cents a lb.

The following deals reported: 2000 bales of cotton from Shahdadpur at Rs 5550-5600, 2000 bales from Tando Adam at Rs 5550-5600, 2400 bales from Sanghar at Rs 5550-5600, 1000 bales from Hyderabad at Rs 5550-5600, 1600 bales from Mirpurkhas at Rs 5550-5600, 1000 bales from Kotri at Rs 5550-5600, 400 bales from Mian Chano at Rs 5650, 600 bales from Samundri at Rs 5650-5700, 800 bales from Sahiwal at Rs 5650-5700, 1000 bales from Haroonabad at Rs 5650-5700, 600 bales from Shujabad at Rs 5650-5700, 1000 bales from Khanewal at Rs 5650- 5700, 400 bales from Pak Pattan at Rs 5675 and 600 bales from Kabbirwala at Rs 5700, they 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 DifferenceFor Price Ex-Karachi Ex. KHI. As Ex-Karachion 21.08.2014

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PLP NEWS ALERTS EMAIL No. 192-2014 ======37.324 Kgs 5,500 150 5,650 5,550 +100 ------Equivalent ------40 Kgs 5,894 160 6,054 5,947 +107 ======Baig lauds Supreme Court judgement

August 23, 2014

Pakistan Denim Manufactures and Exporters Association Chairman Dr Mirza Ikhtiar Baig has lauded the Supreme Court's judgement declaring Gas Infrastructure Development Cess (GIDC) illegal. He congratulated the fellow industrialists and called the judgement a historic victory of the industry. Dr Baig had criticised the imposition of GIDC on gas bills contending that it would substantially increase the energy cost and would be detrimental to our exports.

He argued that Pakistan had been awarded GSP Plus status but increase in our manufacturing cost would favour our regional competitors, India and Bangladesh to get our export market share.-PR

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PLP NEWS ALERTS EMAIL No. 192-2014 Agriculture and Allied: Pakistan Daily trading report of PMEX

August 23, 2014

On Friday at Pakistan Mercantile Exchange (PMEX) value traded was recorded at PKR 2.350 billion as compared to PKR 2.003 billion registered on Thursday, up by 17.29 percent. The number of lots traded was 12,347 and PMEX Commodity Index closed at 2,989. Major business was contributed by crude oil amounting to PKR 1,646 million- up 66 percent, followed by gold amounting to PKR 653 million and silver at PKR 51 million.

August 23, 2014

M RAFIQUE GORAYA

A 10-member Indian delegation of Indus Water Commission is arriving in Lahore on Saturday (today) to hold dialogue in accordance with the 1960 Indus Waters Treaty between the two countries. Pakistan''s Indus Water Commission spokesperson said here on Friday that Indian commissioner will hold talks with his counterpart till August 27.

According to reports, Pakistani officials will raise questions before the Indian delegation regarding five controversial dams under construction in occupied Kashmir. The meeting agenda includes controversial design of Kishanganga Dam on Jhelum River and Pakistan''s objection on four controversial electricity projects started by India on the Chenab River.

August 23, 2014

M RAFIQUE GORAYA

The Indus River System Authority (Irsa) released 30,000 cusecs extra water from the Tarbela dam to meet minimum needs of the provinces for watering of the strategic cash crops ie cotton, rice, sugarcane etc, Punjab Irrigation officials told Business Recorder here on Friday. They said

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PLP NEWS ALERTS EMAIL No. 192-2014 running water in the four live rivers had dropped to lowest level during past nine to 10 years as on August 22 due to 39 percent below normal monsoon rainfall this season.

They said two main water users - Punjab and Sindh provinces - had reduced their water indent to the minimum level for watering the standing Kharif crops that were half-way to their full maturity. Punjab has reduced its water indent by 20,000 cusecs from the Indus and Mangla zone so that maximum water could be conserved for sowing, maturing and harvesting the winter crops including wheat, grams, oil seeds, vegetables, fruit orchards. According to Wapda report, 129,900 cusecs water is flowing in River Indus, in River Kabul at Nowshera: 23,400 cusecs in River Jhelum at Mangla - Inflows 25,100 and in River Chenab at Marala - 48,800 cusecs of water. According to the details, the position of the river inflows and outflows at Tarbela, Mangla and Chashma along with the reservoirs levels and the barrages on Friday is as under:

Barrages: Jinnah - inflows 134,000 cusecs and outflows 126,000 cusecs; Chashma - inflows 148,900 cusecs and outflows 165,000 cusecs; Taunsa - inflows 202,500 cusecs and outflows 174,600 cusecs; Panjnad - inflows 23,900 cusecs and outflows 8,200; Guddu - inflows 206,700 cusecs and outflows 178,000 cusecs, Sukkur - inflows 143,000 cusecs and outflows 87,700 cusecs, Kotri - inflows 66,410 cusecs and outflows 27,145 cusecs.

August 23, 2014

Meteorological department has warned the farmers of pest and viral attacks on their standing crops in the wake of current seasonal rainy spells and advised them to take protective measures. "Pest/viral attacks and more weeds growth are expected after recent monsoon rains in sugarcane and other standing crops in the upper parts of the country," the weather pundits said in its 10-day farmers' advisory ending on August 31.

It said that the farmers should take timely precautionary measures to protect their standing crops, especially the sugarcane, and urged them to step up efforts to remove infield weeds which are expected to emerge from monsoon rains. The farmers of rain affected areas, who rely on tubewells for watering their crops in upcountry areas, should also schedule their irrigation pattern in line with next 10 days weather forecast.

Farmers should be very careful as the rainfall/gusty winds after irrigation cause water logging of standing crops like maize, sugarcane and cotton. Farmers have also been urged to take timely steps to protect their standing crops, livestock and property ahead of the expected rains. Moreover, farmers of cotton belt have also been advised to be aware of the adverse effects of stagnant rainwater in the fields during monsoon. "Mechanism for draining out stagnant water from fields should be evolved on priority and necessary measures should be taken to overcome the problem," it suggested.

It said that light to moderate rainfalls at isolated places are expected over most of the agricultural

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PLP NEWS ALERTS EMAIL No. 192-2014 plains of Punjab during the period. Light rainfall has also been forecast at isolated places of lower Sindh at the end of second half of the forecast period. About Khyber Pakhtunkhwa, it said, heavy rainfalls at isolated places are expected over most of the agricultural plains of the province during the period.

For Balochistan, the Met Office forecast mainly dry weather. However, light rainfall may hit north-western parts of the province during the second half of the period, it added. It said mostly cloudy weather with light to moderate rainfall over hills is expected in most parts of Gilgit- Baltistan. About Kashmir, it said, mainly cloudy weather with light to moderate rainfall over hills is expected at its isolated parts.

August 23, 2014

Speakers at a seminar have urged the farmers to ensure balanced usage of fertilizer in their fields as per recommendations of agricultural experts in order to increase productivity of crops. The seminar titled "Balance Use of fertilizer for Quality Produce" was arranged by Institute of Soil and Environment Sciences, University of Agriculture Faisalabad and International Potash Institute (IPI). The session was chaired by UAF Vice Chancellor Professor Dr Iqrar Ahmad Khan.

While addressing a seminar Professor Dr Iqrar Ahmad Khan said that imbalance usage of fertilizer is costing the country millions of rupees. The fertilizer utilisation is increasing in the country but the proper ratio of fertilizer is being ignored, resulting in low income of farmers. Director General Extension Punjab Dr Anjum Ali Bhuttar said that the provincial government was making all-out efforts to educate the farming community about the latest methods.

Professor Dr Zaheer Ahmad said that the balanced usage of fertilizer will not only save the money of farmers but also increase the production. IPI co-ordinator Dr Abdul Wakeel said that potash usage in the agricultural land is very low. The balance use of potash would increase the productivity. Dr Muhammad Rasheed, former DG Agricultural Research Punjab said that UAF in collaboration with the Punjab Agri Extension department had developed fertilizer model, giving the guidelines to the farming community about proper fertilizer usage.

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PLP NEWS ALERTS EMAIL No. 192-2014 FPCCI President for subsidy on agriculture- products

August 23, 2014

President FPCCI, Zakaria Usman, has called for taking steps to address the issue of food security and provision of subsidy on agricultural products to compete in the international market. President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zakaria Usman said Food processing industry, dairy products, agricultural equipment and machinery may be included in those products.

The supply of energy and other utilities may be subsidised for food processing and agriculture industry. According to FPCCI release here on Friday, the FPCCI Chief mentioned that due to its importance, this global issue was discussed in WTO 9th Ministerial Conference held in December 2013 at Bali, Indonesia. But it could not come with a definite solution and kept the matter pending till the next conference.

Zakaria Usman proposed that inland freight subsidy can also be covered in this clause. However, the major factor of in-competitiveness of Pakistani products in the international markets is the cost of shipping. The reason behind high cost of shipping is the lack of Pakistan's own shipping line.

Copyright Associated Press of Pakistan, 2014 Qadri's allegation rejected: 'Poultry Traders' Association fixes prices in Punjab'

August 23, 2014

Chief Minister's Special Assistant on Livestock Chaudhry Muhammad Arshad Jutt has claimed that prices of poultry in Punjab province are fixed keeping in view the interest of the masses because of which prices of poultry meat and eggs are always lower as compared to other parts of the country.

"Even on Friday price of chicken meat was Rs 188 per kilograms while in Karachi it was Rs 232 per kilograms and in Peshawar the prices of chicken meat were registered at Rs 366 per kilograms," Arshad Jutt said while chairing a special departmental meeting here on Friday.

The meeting was also attended by President and office-bearers of Poultry Traders Association, Lahore Tariq Javed and senior officers of Punjab Livestock and Dairy Development Department. Chaudhry Arshad Jutt condemned a statement of Maulana Tahirul Qadri that Hamza Shahbaz fixed poultry prices in Punjab. He said that it did not suit to a religious scholar to accuse somebody without investigation and confirmation of facts. Speaking on this occasion, Poultry Traders Association Lahore Chief Tariq Javed claimed that since long poultry prices in the

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PLP NEWS ALERTS EMAIL No. 192-2014 provincial capital were fixed by the Poultry Traders Association and Market Traders Association on demand and supply basis. The committee does not include any government member of any political figure; he maintained and also contradicted the allegation levelled by Dr Tahirul Qadri.

August 23, 2014

The Federal Board of Revenue (FBR) has said that sales tax refunds of the dairy sector up to July 1, 2014 would be processed in view of the legal status raw/unprocessed milk enjoys, which is a sales tax zero-rated item under SRO.549(1)/2008 and SRO.570(I)/2013. Official sources told Business Recorder here on Friday that the FBR has issued a sales tax clarification regarding refund of input tax by dairy farmers.

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PLP NEWS ALERTS EMAIL No. 192-2014 used for agricultural purposes and thus clearly considers agriculture in the context of cultivation of crops. The Supreme Court of Pakistan in PLD 1959 SC 453 held that the term 'agriculture" as used in the Income Tax Act, 1922 was narrowly restricted to the cultivation of soil. As such, income from dairy farming is not considered as agricultural income under income tax law.

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PLP NEWS ALERTS EMAIL No. 192-2014 Fuel and Energy: Pakistan POL products' prices may be reduced

August 23, 2014

ABDUL RASHEED AZAD

The government is likely to reduce prices of major petroleum products ranging from Rs 2 per litre to Rs 5 per litre, effective September 1. Well-placed sources in the Ministry of Petroleum and Natural Resources revealed that the price of High Speed Diesel (HSD) is likely to be reduced by over Rs 5 per litre, Kerosene Oil in the range of Rs 2-3 per litre and Light Diesel Oil (LDO) by Rs 3 per litre.

The officials added that there is no change expected in the prices of petrol and High Octane Blending Component (HOBC) as the prices of both the products in the international market have registered an increase, while the price of Jet fuels including JP-1 and JP-4 are also likely to be decreased as prices of all these products in global market have come down.

At present, different petroleum products are selling on following rates: Petrol at Rs 107.97 per litre, high speed diesel at Rs 109.34 per litre, light diesel oil at Rs 94.13 per litre, HOBC at Rs 134.63 per litre and kerosene oil at Rs 97.40 per litre. If the prices are reduced as per international trend, HSD price will come to around Rs 104 per litre from Rs 109.34 per litre, kerosene oil to Rs 95 per litre from Rs 97.40 per litre and LDO to Rs 91 per litre from Rs 94.13 per litre.

During the ongoing month, the government did not pass on the impact of international petrol price on the local consumers by providing a subsidy of Rs 1.36 billion to maintain the oil prices at the existing level. The oil and Gas Regulatory Authority (Ogra) after calculating the international oil price trends will forward a summary to the Ministry of Petroleum and Ministry of Finance by August 28. The government during the past few months did not allow increase in the local petroleum prices due to political reasons against the recommendations of Ogra. During past financial year, the government provided a subsidy of over Rs 20 billion to petroleum products by absorbing Petroleum Levy (PL).

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PLP NEWS ALERTS EMAIL No. 192-2014 Shift to coal: IPPs asked to make their cases in accordance with key provisions of rules

August 23, 2014

MUSHTAQ GHUMMAN

National Electric Power Regulatory Authority (Nepra) has reportedly sent back applications of three power companies, which intend to convert thermal power plants into coal, arguing that the applications should be in line with the prevalent provisions of rules, well-informed sources told Business Recorder.

Three power companies AES Pak-Gen, AES Lalpir and Saba Power had applied for tariff but the regulator returned their applications asking them to come up with all required information. The sources said the regulator has also to evaluate that whether coal conversion is the better option or new fuel-efficient IPPs. Sources said the Economic Coordination Committee (ECC) of the Cabinet, headed by Finance Minister Ishaq Dar, in its meeting on March 27, 2014 approved a proposal of Water and Power Ministry titled "utilisation of the existing available generating capacity-short term IPPs," subject to the condition that the policy should not contravene the Supreme Court judgement of March 30, 2013 in RPPs case.

The government had also signed a Memorandum of Understanding with four furnace oil-fired IPPs to convert them into coal. Sources said the Prime Minister Office is actively pursing both the issues with the top brass of Ministry of Water and Power for submission to the ECC.

"Ministry of Water and Power has proposed immediate utilisation of plant and machinery of power generation equipment, which had been imported under a different scheme, as short tenure IPPs," the sources added. The contracts under which these plants were operating were declared by the Supreme Court of Pakistan in its judgement of March 30, 2012 as illegal and void ab initio. In light of this judgement of the Supreme Court of Pakistan, the sponsors of these power projects have entered into agreements with the National Accountability Bureau for settlement of outstanding liabilities. Consequently, plant and machinery of these power plants would be available for power generation.

Nepra is of the view that the regulator will consider coal conversion projects' tariff, if the sponsors submit their applications in accordance with the prevalent provisions of law. According to the Ministry of Water and Power that to avoid obsolescence of such plants and machinery as well as monetary claims under arbitration, the GoP intends to bring forth a transparent policy for utilisation of existing plant & machinery, as an immediate measure, to reduce demand and supply gap/deficit. This arrangement would add 200 MW to the national grid.

Salient features for the short-term IPPs were as follows: (i) permission from the relevant entities for the utilisation of plant and machinery; (ii) incorporation of Special Purpose Company under the laws of Pakistan; (iii) project company shall obtain a generation licence and a tariff determination from Nepra; (iv) terms and conditions of the Tariff shall be determined by the Nepra; (v) tariff shall be based on take and pay basis and electricity actually delivered to the national grid; (vi) short-term IPPs may also have an option to sell electricity to the bulk

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PLP NEWS ALERTS EMAIL No. 192-2014 consumers like housing societies, industrial parks, etc without the government guarantees and obligation of the public entities to buy all of the generated electricity; (vii) term of the Power Purchase Agreement (PPA) shall be 3 years; (viii) draft PPA shall be prepared by the NTDGL for short-term IPPs for approval of the ECC; and (ix) unconditional and irrecoverable waiver of claims of arbitration against the GoP and its entities shall be eligible under the short-term IPPs framework. According to sources, Ministry of Water and Power has asked Nepra to announce upfront tariff for short-term IPPs before the end of current month.

Sources claim that Prime Minister has expressed annoyance with Nepra for using delaying tactics to announce tariff for IPPs, which will be converted into coal as fuel from diesel and furnace oil. Two short-term IPPs have applied for generation licence with Nepra, but they did not apply for tariff.

August 23, 2014

K-Electric (KE) is pleased to announce that the power utility has received an ISO 9001-2008 Certificate for its SITE IBC (Integrated Business Centre). The certificate is given to organisations in recognition of their improved performances and operations. The certificate recognises quality in customer care and satisfaction along with network complaint solution turn around and Revenue Protection activities.

Giving details, the press statement added that KE had announced the year 2014 as a 'Customer Care & Satisfaction Year', and it was pleasing to know KE's hardship towards improving its customer care has been appreciated and recognised by a third-party accredited certification.

With this certification KE would be more vigilant in focusing on Customer Care, Customer Accounts, Network & Revenue Protection, whereas direct interaction with the consumer will be enhanced in a structured manner. Also, this would help KE in speeding up fault rectifications and the turnaround time will also be reduced. Fault traction and analysis to prevent recurrence would also become mandatory for KE through this certificate and voltage fluctuations and losses will be reduced through a proper strategy. The main emphasis of the system is continual improvement and gives an opportunity to KE to focus on optimising the areas that matter most in IBC's business. It establishes a framework for IBCs as to how to manage a business's key process and ensures that the processes meet recognized standards, clarifying business objectives and avoiding mistakes.-PR

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PLP NEWS ALERTS EMAIL No. 192-2014 Fuel and Energy: World US crude falls, down for fifth week, on ample supply

August 23, 2014

US crude oil futures fell on Friday for a fifth straight week of declines while Brent remained under pressure from a stronger dollar and plentiful supplies despite an escalation of tensions between Russian and Ukraine. Ukraine declared on Friday that Russia had launched a "direct invasion" of its territory after Moscow sent a convoy of trucks across the border into eastern Ukraine where pro-Russian rebels are fighting government forces.

"You'd think with increasing tensions between Russia and Ukraine we'd be going up a bit, but the market maybe doesn't care as much about Russia because up until now we haven't had any supply disruptions," said Phil Flynn, an analyst for the Price Futures Group in Chicago. US crude for October fell 31 cents to settle at $93.65 a barrel, paring earlier losses of more than $1 that brought US crude to $92.92. On Thursday, US crude dropped to $92.50, its lowest price since January.

It ended the week down 3.9 percent in a fifth straight week of losses, the longest streak of weekly drops since November 2013. Brent fell by 34 cents to settle at $102.29 a barrel in its second straight week of losses. Brent has fallen in six out of the past nine weeks as it beat a retreat from its June highs above $115. Traders and analysts said higher inventory at Cushing, Oklahoma, pushed the markets lower Friday after stocks in the delivery point for the US oil contract fell to six-year lows this month.

"I think the market is still reflecting on the big build in Cushing this week," said Dominick Chirichella, senior partner at Energy Management Institute. "I think we're (also) expecting another build this week." Last week, crude stocks at the Cushing delivery hub rose by 1.8 million barrels to 20.2 million barrels, the first time stocks there topped 20 million in a month, data from the Energy Information Administration showed on Wednesday.

Today's more modest declines followed hefty sell-offs this week that drove Brent to its lowest since June 2013. Overseas, the Brent market reflected a contango, where barrels trade more cheaply for the front month than those for delivery at future dates. ICE Brent futures reflected this, with the October contract trading at a 78-cent discount to the November contract. Higher output overseas may also be calming fears. In Libya, oil production continued to increase after the reopening of several eastern ports. Officials have also loaded a second tanker at Es Sider, Libya's largest oil export terminal, after it was shut for a year.

Export volumes from Iraq remain near record levels despite an insurgency by Islamic State militants in the north. Crude is also being exported from Iraqi Kurdistan via Turkey in defiance of Baghdad. A rally in the US dollar to just below its 2014 peak on Friday has put downward pressure on oil as this makes dollar-denominated commodities more expensive for holders of other currencies.

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PLP NEWS ALERTS EMAIL No. 192-2014 Copyright Reuters, 2014 UK oil output threatened by platforms running out of juice

August 23, 2014

Britain's oil industry is facing the threat of a cascade of North Sea rig closures, unless ageing platforms can urgently source more gas to help squeeze out the remaining barrels. The potential threat to oil revenues looms as Scotland prepares to vote in September's independence referendum - a debate in which oil production forecasts have become a political football.

The affected Northern North Sea (NNS) is a very mature part of the basin where producers are trapped in a vicious circle of falling output, rising costs to patch up ageing platforms, and dwindling power supplies. To lift more oil from these depleted reservoirs, producers need to inject vast quantities of water - a power intensive process that requires a reliable source of energy, known as fuel gas.

Some platforms are not able to generate enough of their own fuel so have to try and import the shortfall from neighbours, but the overall net position in a key part of the NNS will go negative as early as 2016. This could force the early abandonment of rigs, with the loss of critical platform hubs sounding the death knell for dependent fields. "We may be near a production efficiency precipice," said Calum McGregor, economics and joint venture manager at Taqa Bratani, speaking at Oil & Gas UK's Aberdeen conference earlier this summer. "Because of the interconnected nature of this area, there is a domino effect that kicks in."

McGregor presented findings from a cross-operator work group he co-chairs which seeks to improve co-operation amongst producers focused on the NNS "Rejuvenation Area". This includes Taqa's Cormorant and BP's Magnus hubs, which will leave the most stranded assets if they shut down early. The fall in production efficiency means that time is running out. The NNS Rejuvenation Area is now producing at just 7 percent of its peak, compared with 29 percent for the UK Continental Shelf as a whole.

To arrest this decline, producers need to lay their hands on fresh power supplies. Under government auspices, a Gas Work Group is looking at ways to source, transport and deliver reliable fuel gas. It is due to report back by the end of October. Possible solutions include installing a power ring main, rationalising power generation equipment, bringing fuel gas in by tanker, sacrificial decommissioning and new pipelines.

"We've got to get this fixed - a very small amount of gas could make a lot of difference to this area," McGregor said. "If you can improve water injection then it delivers a significant incremental uptick in barrels." Currently, small producers trying to access gas find it difficult because there is not much upside for the seller. "An individual platform doesn't need large volumes of gas for fuel, especially when you can couple it with your own production, so that means you are immaterial to the operator," said Ian Sharp, chief operating officer at Fairfield Energy, also speaking at the Aberdeen conference.

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PLP NEWS ALERTS EMAIL No. 192-2014 Copyright Reuters, 2014 Britain introduces payment disclosure rule for energy, mining firms

August 23, 2014

Britain announced on Friday that oil, gas and mining firms would have to disclose any payments made to countries they operate in from next year as the government aims to curb corruption in the natural resources sector. UK-registered companies will have up to 11 months after the end of their financial year to report the payments to Companies House under the new rule, which will take effect from January 1 2015.

"The UK is determined to lead by example which is why we have introduced reporting requirements on UK-based extractives companies early," said Business Minister Jo Swinson. "Oil, gas and mining can, if well managed, deliver precious economic benefits to the populations of developing countries. Too often, though, the assets from resource-rich countries are not benefiting local people or the local economy." The announcement on Friday follows a period of consultation with industry and the public on the proposal.

August 23, 2014

Germany's economy ministry approved the sale of utility RWE's oil and gas unit DEA to a Russian investor despite tensions between Russia and the West over the Ukraine crisis. The go- ahead announced on Friday removes the biggest hurdle for the 5.1 billion euro ($6.9 billion) sale, a major plank in RWE's struggle to reduce a debt burden of more than 30 billion euros.

As part of the deal, Russian tycoon Mikhail Fridman and his co-investors will get stakes in about 190 oil and gas licenses or concessions in Europe, the Middle East and North Africa. Relations between Russia and the West were already deteriorating over Ukraine when the deal was announced in March. The European Union and the United States have imposed economic sanctions against Russia for its annexation of Ukraine's Crimea region and its backing of pro- Russian separatists, who are fighting against government forces in eastern Ukraine. Russia, in turn, has slapped bans on Western food imports.

But Deputy Economy Minister Stefan Kapferer told journalists on Friday that the government found that the deal would not endanger Germany's energy supply and the buyer consortium's European Union base had also been a decisive factor. The European Union's antitrust watchdog has already given the green light but regulators in a few other countries, which RWE declined to

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PLP NEWS ALERTS EMAIL No. 192-2014 name, have yet to give their approvals. DEA has operations in about a dozen countries, including Britain, Norway, Denmark and Egypt.

The German government could theoretically have used a clause in its foreign trade law that allows it to block take-over deals that threaten "public safety and order", but it would have been an unprecedented move. RWE, Germany's largest power producer, has previously said it expects the deal to be finalised this year. "We will now pursue the process further as planned," the company said in a statement on Friday.

RWE, like other German utilities, is struggling to adjust to a power sector shake-up as Germany moves away from nuclear energy and encourages a shift to renewables, while Europe's energy demand is weak. The debt-burdened firm's market value has halved in four years. RWE has been looking for ways to reduce its debt, including cutting jobs and shedding assets, such as the 1.6 billion euro sale of Czech gas pipeline operator Net4Gas last year.

August 23, 2014

Lithuania signed a deal with Norway's Statoil on Thursday to supply natural gas to the country's new terminal starting 2015, as the Baltic state strives to cut its dependence on Russian energy. Under the five-year deal, Statoil will supply an annual 540 million cubic meters to the liquefied natural gas (LNG) terminal on Lithuania's Baltic Sea coast which is due to be completed by the end of the year.

The value of the deal is estimated at 2.5 to three billion litas (700-900 million euros, $1.0-1.1 billion) according to Litgas, the state-owned company in charge of LNG imports. "It is a big and important step in strengthening Lithuanian energy security," Prime Minister Algirdas Butkevicius told reporters.

"For the first time in Lithuanian history, we will have a permanent alternative natural gas import source." Russia's state-owned Gazprom is Lithuania's only natural gas supplier under a deal arranged in Soviet times, when Lithuania was part of the USSR. But Vilnius has been working to diversify its gas suppliers since breaking free from Moscow in 1990 and joining the European Union and Nato in 2004. In May, Gazprom agreed to a price cut of about 20 percent, after Lithuania filed an international lawsuit. The first LNG cargo delivery is expected in December, so that the terminal at the port of Klaipeda can start commercial operations in January 2015, Litgas said.

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PLP NEWS ALERTS EMAIL No. 192-2014 US natural gas futures down one percent

August 23, 2014

US natural gas futures fell more than 1 percent on Wednesday as players either took profits or sold because they have grown wary of forecasts for a heat spike late into the summer that drove the market higher the past two days. Front-month September gas futures on the CME NYMEX settled down 5.4 cents, or 1.4 percent, at $3.823 per million British thermal units. The session low was $3.79, while the high was $3.89.

On Tuesday, the market closed up 2.2 percent for its largest percentage gain in two months, after temperature readings suggested inordinately warm weather late into the summer that could bump up the demand for gas to power air conditioning. "While acknowledging the dangers of picking a bottom in a falling market, we see the possibility of further price declines ahead," said Teri Viswanath, an analyst at BNP Paribas, who disputes there will be enough hot weather to keep the market up.

MDA Weather Services said on Wednesday that temperatures had trended a bit hotter in the central United States and that some warmth would reach the Northeast in six to 10 days, although cooler weather should follow. US weather models predicted above-normal temperatures over the next two weeks, with 183 cooling degree days versus 179 on Tuesday and a normal of 170 for this time of year, according to Thomson Reuters Analytics.

The front-month gas contract fell 4 percent last week on abnormally cooler weather forecasts. After the gains Monday and Tuesday, the contract is up 1.4 percent for this week. But for the month to date, it is down 0.3 percent, and year to date, it is down nearly 10 percent.

The market's 100-day moving average of $4.36 also remains below the 200-day average of $4.39. On the inventory side, utilities probably added 83 billion cubic feet of gas into storage for the week ended August 15 to continue with a record pace of gas injections, a Reuters poll of analysts showed.

Official inventory data will be released on Thursday. On the NYMEX, the premium of the front- month gas contract over spot Appalachian coal fell slightly, to $1.32 from $1.38 on Tuesday. A gas premium between $1 and $2 makes it cost-effective for utilities to burn coal.

August 23, 2014

Danish wind turbine maker Vestas Wind Systems posted strong quarterly earnings on Wednesday as it continued to emerge from a crisis in which it shed thousands of jobs. The company raised its profits guidance. The Aarhus-based company said it believes this year's margin on earnings before interest and taxes, before special items, would be at least six percent,

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PLP NEWS ALERTS EMAIL No. 192-2014 instead of five percent forecast previously.

The upgrade was based on "the improved cost base and the expected delivery plan for the second half of 2014," it said. The company, the world's biggest wind turbine maker, reported its last annual profit in 2010, falling into the red after an ill-timed expansion plan and tough competition forced it to slash its workforce by almost a third.

Vestas made a net profit of 94 million euros ($125 million) in the second quarter compared with a 62 million euro loss in the same period a year ago, as revenue rose 13 percent to 1.341 billion euros. The group said the European market was "still characterised by low activity in southern Europe which is balanced by growth in some northern and eastern European markets," while activity in the US was high.

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PLP NEWS ALERTS EMAIL No. 192-2014 Crime News Peshawar: Capsules filled with heroin seized

PESHAWAR: The Anti-Narcotics Force (ANF) officials on Thursday arrested an accused and recovered 135 capsules filled with heroin during checking at the Peshawar Motorway Toll Plaza.

A press release said the ANF officials on suspicion checked the luggage of a person and recovered 135 capsules filled with heroin. 3 alleged extortionists arrested in Charsadda

CHARSADDA: The police claimed to have arrested three alleged outlaws in the limits of Sardheri Police Station and recovered stolen money from them. Speaking at a press conference on Thursday, District Police Officer (DPO) Shafiullah Khan said the police raided the dens of the criminals in Sardheri area and arrested Anees, Iftikhar and Tahir.

The DPO said the arrested persons were wanted by the police in connection with crimes of heinous nature, including taking extortion money from people. The police also recovered stolen money from them.

He said Anees had shot dead one Ghulam Noor and Said Wali after they refused to pay him extortion. He had killed renowned jewellers, Guldad Khan and Asif in Peshawar and had taken away Rs60million from their shops, he added. Accountant held for fraud in Lahore

LAHORE: The Anti-Corruption Establishment (ACE), Lahore Region, on Thursday arrested an accountant of a college for misappropriating fee of around Rs 1.6 million.

According to sources, principal Technology College, Railway Road, had submitted an application to the ACE to investigate the embezzlement in the college fee. The ACE officials after inquiry found that accountant Amjad Shah embezzled the college fee. A case was lodged against Amjad. Drug pusher held in Daska

DASKA: The City police arrested a drug pusher and recovered charas from him. On a tip- off, the police arrested Hanif and recovered 1.3kg charas from him.

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PLP NEWS ALERTS EMAIL No. 192-2014 3 booked for water theft in Daska

DASKA: The police registered cases against three people on the charge of stealing water. On a tip-off, the SDO with his team raided the link canal and caught Muhammad Anwar, Muhammad Arif and Shafaqt Ali red-handed. Kidnapping?: Two sisters go missing

By Our Correspondent

Published: August 23, 2014

RAWALPINDI:

Two sisters have gone missing from their house in the Saddar Bairuni area of Rawalpindi.

Muhammad Fahad*, a resident of Chak Beli Road, lodged a complaint with the local police that his daughters, Saira*, 23, and Nadia*, 21, had been kidnapped from his house.

Published in The Express Tribune, August 23rd, 2014.

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PLP NEWS ALERTS EMAIL No. 192-2014 Miscellaneous News Lending support: OGRA backs plan to siphon LNG to CNG filling stations

By Zafar Bhutta

Published: August 23, 2014

ISLAMABAD:

The Oil and Gas Regulatory Authority (Ogra) has put its weight behind the proposed plan of the Ministry of Petroleum that calls for allocating some liquefied natural gas (LNG) imports to compressed natural gas (CNG) filling stations and saving domestic natural gas supplies for power plants.

Giving its comments in response to the plan, the regulator for the oil and gas industry backed the proposal for LNG supplies, likely to arrive early next year, to the CNG industry, which was on the brink of collapse because of gas shortage, especially in Punjab, officials say.

However, it suggested that the government should determine the LNG price for the consumers.

The Ministry of Petroleum and Natural Resources has tabled a summary before the Economic Coordination Committee (ECC) of the cabinet, requesting permission for LNG consumption by CNG filling stations. The summary is expected to be approved in ECC’s next meeting.

Officials of the petroleum ministry stress that the government wants to save the Rs450-billion CNG industry with which about 300,000 skilled and unskilled workers are directly associated and 150,000 people are indirectly related.

At present, about 3.7 million vehicles, equipped with CNG conversion kits, run on gas in place of petrol.

The ministry has also set out a plan of fiscal incentives including exempting imported LNG from sales tax and gas infrastructure development cess (GIDC) to make it affordable for the people and keep a 30% difference between prices of petrol and CNG.

Currently, all bulk buyers of natural gas are paying GIDC at Rs300 per million British thermal units (mmbtu) and sales tax at 17%.

“This plan, however, will promise 24-hour gas supply to the consumers against only 72 hours a month these days with 30% cheaper cost compared to petrol,” a ministry official remarked.

“The regulator’s primary concern is to safeguard the interest of consumers, therefore, LNG should be cheaper than petrol,” an Ogra official said.

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PLP NEWS ALERTS EMAIL No. 192-2014 Since CNG stations would switch to imported LNG, the domestic natural gas, thus saved, would be provided to other bulk commercial buyers and the government would continue to receive the same amount of GIDC and sales tax, the ministry said. This would have no negative impact on government’s revenues, it added.

According to the ministry official, around $1.4 billion could be saved in oil imports every year by supplying LNG to CNG outlets and power plants will receive the gas spared by the filling stations.

Following the award of a contract by the government for construction of an LNG terminal, CNG is the first industry that has taken the initiative to seize the opportunity to ensure its sustainable future. This way, 628 million cubic feet of natural gas per day (mmcfd) will be diverted to the power plants to increase electricity production and control hours-long outages.

Meanwhile, Pakistan State Oil (PSO) has got LNG supply offers from international energy giants like British Petroleum and Royal Dutch Shell. First shipment is expected to arrive early next year after completion of work on the terminal.

“If the CNG industry is shut down, the vehicles running on gas will have no choice but to use petrol, which will lead to a significant increase in oil imports,” the petroleum ministry said.

At present, CNG stations need 478 mmcfd of gas for vehicles and around 150 mmcfd for power generation for the compressors. However, because of the high demand-supply gap, the sector is taking a hit in terms of reduced gas supplies.

“With the replacement of petrol by environment-friendly LNG, the carbon footprint of the country will improve by almost six million tons of greenhouse gas emissions per annum and will offset the emissions from upcoming coal-based power projects,” the ministry said.

Published in The Express Tribune, August 23rd, 2014. 1MFY15: Current account deficit swells

By Kazim Alam / Creative: Jamal Khurshid

Published: August 23, 2014

KARACHI:

Pakistan’s current account deficit in the first month of 2014-15 increased to more than $454 million as opposed to $125 million recorded in the corresponding month of 2013-14, according to data released by the State Bank of Pakistan (SBP) on Friday.

The current account deficit has widened by $319 million in July over the preceding month when it stood at only $135 million. It amounted to $2.97 billion at the end of 2013-14.

As a percentage of the gross domestic product (GDP), the current account deficit widened to 1.9% in July as opposed to 0.6% in the same period of the last fiscal year.

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PLP NEWS ALERTS EMAIL No. 192-2014 The country’s balance of payment (BoP) position deteriorated during the last fiscal year, as foreign exchange reserves held by the central bank reduced to just $2.8 billion in February. Low foreign exchange reserves provided import cover for less than a month, prompting the ministry of finance to arm-twist exporters to bring dollars back into the banking system.

SBP-held reserves improved following alleged intervention from policymakers into the foreign exchange market, resulting in a year-on-year increase of more than 50% by the end of the fiscal year in June. SBP-held reserves currently stand at $8.9 billion.

Pakistan exported goods worth $1.9 billion in July as opposed to exports totalling $2.2 billion in the comparable month of 2013-14, reflecting a year-on-year decrease of 13.2%. The value of goods exported in July decreased by $184 million on a month-on-month basis, which is 8.8% less than the exports of a little over $2 billion recorded in June.

Pakistan’s total imports of goods in July were almost $3.8 billion as opposed to $3.4 billion in July 2013, which means an increase of 10.2%. on a month-on-month basis, the value of goods imported increased 6.1%, as Pakistan imported goods valuing $3.5 billion in June.

Balance of trade in both goods and services at the end of the first month of 2014-15 clocked up at negative $2.1 billion as opposed to the deficit of $1.4 billion recorded in the same month of the preceding fiscal year.

Workers’ remittances remained $1.6 billion in July, up 17.4% from the same month of the last fiscal year when they totalled $1.4 billion. Workers’ remittances increased by $150 million in July, registering a rise of 10% on a month-on-month basis. The substantial increase during the last month was because of Eid, which is typically preceded by larger than usual workers’ remittances. They amounted to a little less than $1.5 billion in June.

Published in The Express Tribune, August 23rd, 2014. Agriculture: FPCCI chief raises food security concerns

By Our Correspondent

Published: August 23, 2014

KARACHI:

Federation of Pakistan Chamber of Commerce and Industry President Zakaria Usman has expressed concern over the present deplorable conditions of food security, stressing that the crisis demanded urgent attention.

Since the WTO has failed to act, Usman says any food subsidy would play a vital role, pointing out the subsidies given in India.

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PLP NEWS ALERTS EMAIL No. 192-2014 Despite the imperative nature of this problem, Usman believed the response from the ninth ministerial conference of the World Trade Organization that was held in Bali in December was underwhelming.

In a letter addressed to the Federal Minister for Commerce Khurram Dastagir, Usman said that Pakistan is an agro-based country. If India is granted subsidy on agricultural products – under the agreement on agriculture (AoA) – this would create an imbalance in regional trade against Pakistani products. “The government should strongly object and oppose the demand of subsidy by India.”

Usman further informed the minister that the situation means that the Indian farmers would be in a position to supply their products at cheaper prices with the help of government financial support in the form of subsidies. Consequently, export of rice from India will be available at cheaper prices in international markets, he said, adding that Pakistani exporters will not be in a position to compete with Indian exporters. This is mainly due to Pakistani authorities not being able to give subsidies due to the IMF’s condition of disallowing any subsidy to its farmers or exporters.

FPCCI chief suggested that the government can provide subsidy on those agriculture products that are linked with the global food security issue. Food processing industry, dairy products, agriculture equipments and machinery may be included in those products, he said. The supply of energy and other utilities may be subsidised for food processing and the agriculture industry.

Usman further proposed that inland freight subsidy can also be covered in this clause; however, the major factor leading to the competitive prices of Pakistani products in the international markets is the cost of shipping.

The reason behind high cost of shipping is the lack of Pakistan’s own shipping line. “The National Shipping Corporation has become inactive and freight outward from Pakistan is monopolised by few international shipping lines.”

Published in The Express Tribune, August 23rd, 2014. Uncertainty to increase amid political impasse

By Our Correspondent

Published: August 23, 2014

KARACHI:

The ongoing political impasse will add to the uncertain economic future of Pakistan and a speedy resolution is imperative to alleviate the concerns of the business community, according to attendees of the American Business Council’s (ABC) roundtable meeting of the year.

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PLP NEWS ALERTS EMAIL No. 192-2014 They said that while the first half of fiscal year 2014 had been good for business and majority of participants witnessed growth in profits, the last few months have been tumultuous and businesses remained cautious due to the prevalent political disturbances.

ABC organises roundtable meetings of executives to analyse overall business sentiments among member companies.

General consensus among the attendees was that with the International Monetary Fund having delayed its completion of the fourth review amid conditions, risk to continuation of economic agenda remains in case the political turmoil is long drawn out.

ABC recently held its second quarterly Chief Executive Officer Roundtable meeting which was attended by members from various sectors like healthcare, financial services, information technology, food and beverages, pharmaceuticals, oil and gas and others.

ABC President Tauqir Ahmed welcomed the recent exchange of views between American businesses and the government on strengthening the effectiveness of intellectual property rights. He also lauded efforts of the finance ministry to involve and consider the feedback of the private sector within the current fiscal year’s budgetary process.

While these are steps in the right directions, Ahmed mentioned the challenges facing American businesses in Pakistan including issues which have caused great concern to investors. These include poor law and order, political uncertainty, energy shortages, lack of clarity in business policies and a poor enforcement of intellectual property rights (IPR).

“Pakistan has an opportunity to grow its different industries, foster innovation, and create competition,” said Ahmed. “It’s in everyone’s interest to find solutions with the private sector. But these prospects are jeopardised when intellectual property rights are not enforced.”

ABC members include some of the most prominent business executives, managing amongst them the most prestigious businesses, in Pakistan, most of which are Fortune 500 companies.

ABC has 65 members with cumulative revenues of over $4 billion and an investment of approximately $780 million. The members contribute a sizable amount to the national exchequer every year as direct and indirect taxes with last year’s contribution being Rs87 billion.

ABC member companies employ over 42,000 persons directly who support 170,000 dependents and indirectly employ nearly one million people with their agents, distributors, suppliers and contractors.

Published in The Express Tribune, August 23rd, 2014.

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PLP NEWS ALERTS EMAIL No. 192-2014 Investment scam: Court seeks comments of NAB deputy prosecutor

By Naeem Sahoutara

Published: August 23, 2014

KARACHI:

The Sindh High Court issued on Friday a notice to the deputy prosecutor general of the National Accountability Bureau (NAB) Sindh, seeking comments on implication of a man in an investment scandal related to the modaraba mode of Islamic financing.

The court’s move came in response to a petition, filed by Faizan Ahmed Siddiqui, who mentioned the names of interior secretary and NAB Sindh director general in the case.

A division bench, headed by Justice Ahmed Ali M Sheikh, will take up the matter and examine the comments on September 2.

Narrating his story, Siddiqui told judges that being a young man of 27 years of age he decided to acquire a visa to move to the United States in search of greener pastures. His brother-in-law Muhammad Owais requested to a philanthropist, Shafiqur Rehman, to deposit some money in his bank account for the purpose of showing the account’s statement.

Rehman deposited Rs45 million in Siddiqui’s bank account, but kept the cheque book with himself.

Meanwhile, the petitioner said, the philanthropist was taken into custody by intelligence agencies over allegations of financing the al-Qaeda terrorist network. Following weeks of detention, he was sent to jail, from where NAB authorities took his physical custody upon release on bail.

NAB officials arrested Rehman in connection with the infamous Rs45 million modaraba financing scandal. Later, NAB filed a reference for cheating 112 people in the name of Islamic investment and named the petitioner as one of the beneficiaries.

Siddiqui claimed he had nothing to do with the scandal and pleaded to the court to order the NAB authorities to quash the proceedings against him.

After initial hearing of the petition, the judges issued the notice to the NAB deputy prosecutor general, seeking comments by September 2.

Published in The Express Tribune, August 23rd, 2014.

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PLP NEWS ALERTS EMAIL No. 192-2014 Investment: Australia sizes up halal food sector

By Our Correspondent

Published: August 23, 2014

LAHORE:

Pakistan High Commissioner to Australia Naela Chohan has said that Australian companies are interested in investing in the halal food market, elaborating that they would want to enter the Middle Eastern region through Pakistan.

Chohan said Pakistan would be able to become a lucrative market through the endeavour, adding that the development would be beneficial for both countries.

She was talking to officials of the Punjab Board of Investment and Trade (PBIT) during a visit where she was welcomed by the chief executive officer, Mohammad Ilyas Ghauri. On this occasion, she was also given a presentation on the core functions and working of PBIT and the priority sectors that are in focus in Punjab.

Chohan said that she will be working on building Pakistan’s image mainly in the trade and export sector. PBIT CEO extended the body’s full support and services to Chohan in facilitating the Halal Food Exhibition in Pakistan to attract Australian companies.

Published in The Express Tribune, August 23rd, 2014. Revamp: Chrysler’s pickup gears up for facelift

By Reuters

Published: August 23, 2014

DETROIT:

Chrysler Group is planning an extensive facelift of its full-size Ram 1500 pickup in spring 2017, but has no firm plans to follow rivals General Motors and Ford Motor Co in replacing steel body panels with aluminum until a complete redesign after 2020, industry sources told Reuters.

While Ford and GM are shifting to lighter aluminum body panels to dramatically reduce the weight of their best-selling full-size pickups – this fall and in the fall of 2018, respectively – Chrysler is planning to stick mainly with steel when it updates the big Ram pickup in 2017.

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PLP NEWS ALERTS EMAIL No. 192-2014 Chrysler is thereby sidestepping the risk of alienating commercial users, many of which believe steel is more rugged and durable than aluminum.

The two larger automakers can spread the investment over more vehicles. Ford sells nearly twice as many pickups as Chrysler, which is a unit of Italy’s Fiat SpA.

All three automakers are dependent on big trucks and SUVs for the lion’s share of their profits. At Chrysler, those vehicles account for nearly 100% of pretax earnings.

Fiat Chief Executive Sergio Marchionne, who also heads Chrysler, told investors in May that the use of weight-saving aluminum at Chrysler “is better suited in other vehicles than pickup trucks.”

At the time, Chrysler confirmed that it would update the light-duty Ram 1500 in 2017. The current Ram 1500 was introduced in late 2008 as a 2009 model and has received several significant upgrades since then.

However, the five-year future product plan shared with investors in May made no mention of when the Ram would receive a full redesign.

Industry sources familiar with the company’s plans said Chrysler is not likely to undertake a full redesign of the Ram before 2021 at the earliest.

Chrysler spokesman Rick Deneau on Thursday said, “We can’t comment beyond what was in the five-year plan.”

Asked as to whether or when Chrysler might incorporate more aluminum in future versions of the Ram, he said “we haven’t made any decisions.”

By electing not to invest as much as its Detroit rivals in aluminum, Chrysler will have to rely on other measures, including improving its engines and transmissions, to meet increasingly stringent U.S. emissions and fuel economy standards for trucks, beginning in 2018.

Published in The Express Tribune, August 23rd, 2014. Apple iPhone6: Redesign gives rise to supply hiccup

By Reuters

Published: August 23, 2014

TOKYO:

Suppliers to Apple Inc are scrambling to get enough screens ready for the new iPhone 6 smartphone as the need to redesign a key component disrupted panel production ahead of next month’s expected launch, supply chain sources said.

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PLP NEWS ALERTS EMAIL No. 192-2014 It’s unclear whether the hiccup could delay the launch or limit the number of phones initially available to consumers, sources said, as Apple readies larger-screen iPhones for the year-end shopping season amid market share loss to cheaper rivals.

But the issue highlights the risks and challenges that suppliers face to meet Apple’s tough specifications, and comes on the heels of a separate screen technology problem, since resolved, in making thinner screens for the larger iPhone 6 model.

Cupertino, California-based Apple has scheduled a media event for Sept. 9, and many expect it to unveil the new iPhone 6 with both 4.7 inch and 5.5 inch screens – bigger than the 4-inch screen on the iPhone 5s and 5c.

Two supply chain sources said display panel production suffered a setback after the backlight that helps illuminate the screen had to be revised, putting screen assembly on hold for part of June and July. One said Apple, aiming for the thinnest phone possible, initially wanted to cut back to a single layer of backlight film, instead of the standard two layers, for the 4.7-inch screen, which went into mass production ahead of the 5.5-inch version.

But the new configuration was not bright enough and the backlight was sent back to the drawing board to fit in the extra layer, costing precious time and temporarily idling some screen assembly operations, the source said.

Output is now back on track and suppliers are working flat-out to make up for lost time, the supply chain sources added. Japan Display Inc, Sharp Corp and South Korea’s LG Display Co Liminted have been selected to make the iPhone 6 screens, the sources said.

Representatives for those three suppliers, and for Apple, declined to comment.

Wider impact

Apple is known to make tough demands on its parts suppliers for new iPhones and iPads as it competes to create designs, shapes, sizes and features to set it apart and command a premium price in a fiercely competitive gadget market.

This can cause glitches and delays, including screen problems that crimped supplies at last year’s launch of a high-resolution version of Apple’s iPad Mini.

It also highlights the danger for suppliers of depending too heavily on Apple for revenues, creating earnings volatility.

Earlier this month, Japan Display, said to be the lead supplier for the new iPhone panel, said orders for “a large customer” – which analysts said was Apple – arrived as expected, but shipments may be delayed in the July-September quarter.

Supply chain sources had previously said challenges with the new iPhone’s screen in-cell technology, which eliminates one of the layers in the LCD screen to make it thinner, caused a delay in the production of the larger 5.5-inch version. One display industry source said the in-cell issues had now been resolved.

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PLP NEWS ALERTS EMAIL No. 192-2014 Published in The Express Tribune, August 23rd, 2014. Focus on telecom: Technology exhibition in town

By APP

Published: August 23, 2014

KARACHI:

The E-commerce Gateway Pakistan Private Limited is organising the 14th ITCN Asia 2014 exhibition, at the Karachi Expo Centre from August 26 to 28. It is recognised as a focal point for information technology and telecom industry and is an approved event from a UFI (Paris). ITCN Asia will showcase 3G and 4G technology at the exhibition. The event is supported by a conference with the theme ‘3G and 4G: Impetus to Growth.’

ITCN Asia is the only ICT expo attracting more than 30 foreign companies and 80 foreign visitors; putting Pakistan on the global ICT map. Microsoft Corporation Pakistan, MIT Enterprise Forum of Pakistan and E-commerce Gateway have joined hands to organise a hackathon at the event that will host 250 students developers from different universities.

Published in The Express Tribune, August 23rd, 2014. US slaps sanctions on Taliban, al Qaeda linked men, financing company

By AFP

Published: August 23, 2014

WASHINGTON: The United States has imposed sanctions on four extremists including two Taliban members and two other men that it accuses of ties with al Qaeda and the Al- Nusra Front, alleging they financed and acted on behalf of the two terror groups. A Taliban financing company was also sanctioned.

The Treasury on Thursday placed sanctions on a Pakistan-based hawala, or money transfer business, Haji Basir and Zarjmil Company (Basir Zarjmil Hawala), and its owner, Haji Abdul Basir, for providing financial services or other support to the Taliban. The Treasury Department said the sanctions on the company were aimed at the financial networks of the Taliban.

Basir’s business, based in Balochistan, allegedly distributes money to Taliban members in Afghanistan and has allegedly used Pakistani banks as a conduit for Taliban financing, the Treasury said.

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PLP NEWS ALERTS EMAIL No. 192-2014 Basir was considered to be the principal money exchanger for Taliban senior leadership in Pakistan from as far back as 2012.

The Treasury also placed sanctions on Qari Rahmat, allegedly a Taliban commander since at least February 2010 who the Treasury claim also collects taxes and bribes on behalf of the Taliban and supplies them with arms.

“The Taliban continues to conduct terrorist attacks against US forces and innocent civilians, posing a direct threat to US national security interests,” claimed David Cohen, the Treasury’s under secretary for terrorism and financial intelligence, in a statement.

“We will continue to work to deprive terrorists of the funds necessary to sustain and perpetrate terrorist operations.”

On Thursday, the US had also placed sanctions on Haqqani network leaders.

Two al Qaeda men sanctioned

Abdul Mohsen Abdallah Ibrahim al Sharekh, allegedly the head of al Qaeda operations in Syria, and Hamid Hamad Hamid al-Ali were placed on a sanctions list by the United Nations Security Council on August 15. The Treasury’s move on Friday to sanction came in support of the UN action.

Under the designation issued by the US Treasury, any assets of two men – Saudi and Kuwaiti nationals – under US jurisdiction are frozen and Americans are “generally prohibited from doing business with them.”

“We are determined to stem the flow of funds to terrorists in Syria and Iraq who continue to commit violent acts and threaten US and allied interests in the region,” David Cohen, undersecretary for terrorism and financial intelligence, said in a statement.

Al Sharekh, a Saudi citizen, is described as a Syria-based senior leader of the Al-Nusra Front, as well as a key al Qaeda facilitator, who moved to the war-torn country in the spring of 2013.

Listed as one of Saudi Arabia’s most-wanted terrorists, he previously served as a “key financial facilitator” for the al Qaeda in Pakistan, according to the Treasury.

On the other hand, Al-Ali is accused of raising tens of thousands of dollars to help the Al-Nusra Front buy weapons and supplies and also directed donors in his native Kuwait to support the group.

The Treasury, saying he has called himself an “al Qaeda commando,” also alleges al-Ali raised money for al Qaeda and arranged travel for a number of foreign fighters to Syria.

Earlier this month, the United States slapped sanctions on three other men, two of them Kuwaiti, accusing them of providing money, fighters and weapons to extremists in Iraq and Syria.

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PLP NEWS ALERTS EMAIL No. 192-2014 Heavy Indian cross-border firing near Sialkot leaves 2 civilians dead, 6 injured

By Web Desk

Published: August 23, 2014

SIALKOT: At least two civilians, including a woman was killed and six others were injured in cross border firing and shelling by the Indian forces across the working boundary early on Saturday, Express News reported.

According to details, Indian army started firing in Charwah sector, Sialkot at around 1 am.

As a result of the heavy firing, Imdad Hussain, 60, was killed in Jagran Gari area.

A woman was killed and her two daughters were injured when Indian mortars fell in Khadaral village.

Three women were reportedly injured when mortars fired by Indian forces landed in Bina Sulehrian.

Pakistan Rangers also retaliated with heavy gunfire.

This is the second incident of cross border firing from the Indian side in a week.

On August 18, Indian army fired at Harpal sector however no causalities were reported. Show of strength: PML-N workers rally in support of Nawaz

By Obaid Abbasi

Published: August 23, 2014

RAWALPINDI:

Workers of the Rawalpindi chapter of the Pakistan Muslim League-Nawaz (PML-N) made their presence felt on Saturday by taking out a rally on Benazir Bhutto Road to express solidarity with their embattled party leader.

The rally, which set off from the Rawalpindi Press Club and culminated at Committee Chowk, was attended by scores of party workers and local PML-N leadership. PML-N leader Hanif Abbasi led the rally.

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PLP NEWS ALERTS EMAIL No. 192-2014 “We are here to record our peaceful protest to express solidarity with Prime Minister Nawaz Sharif. We will not tolerate any illegal step from any quarter, including the protesters, to oust the government,” said PML-N city president Sardar Nasim, while addressing participants.

PML-N local leaders, including MNAs Malik Ibrar, Tahira Aurangzeb, Seema Mohiuddin Jameeli, MPA Raja Hanif, former MNA Haji Pervez Khan, Malik Shakeel Awan and Chaudhry Sarfaraz Afzal also participated in the rally.

PML-N activists were carrying banners and placards inscribed with slogans in favour of Sharif.

“How can an elected prime minister step down and give in to the so-called pressure of a handful of people,” asked Nasim.

He said it was their leadership’s positive gesture and sagacity that protesters were allowed to stage sit-ins in the Red Zone. “This doesn’t mean that they can go on packing up the whole system.”

When asked why the rally was organised after a lapse of seven days, he said the party leadership had restrained them from taking out protest rallies at this critical juncture. “But the workers pressured the local leadership to allow them to organise a peaceful rally.” Aurangzeb said the prime minister will not step down and will complete his five-year term.

“The entire nation is backing the prime minister so why should he resign,” she said, advising Imran Khan to focus on Khyber-Pakhtunkhwa, where his party is in power instead of demanding the prime minister to step down.

The garrison city is considered a stronghold of the PML-N. In the 2013 general elections, the party lost only one seat — NA-55 — where Imran Khan defeated Hanif Abbasi.

Published in The Express Tribune, August 22nd, 2014. Controversial extension: IHC hears auditor general’s case today

By Our Correspondent

Published: August 23, 2014

ISLAMABAD:

The Islamabad High Court (IHC) will take up the Auditor General of Pakistan (AGP) Akhtar Buland Rana’s petition challenging the extension in service of Controller General of Accounts Farah Ayub Tarin.

The petitioner has challenged a federal government notification, issued on August 13, by virtue of which Tarin, who was to retire on August 13 owing to superannuation, has been granted an extension in service.

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PLP NEWS ALERTS EMAIL No. 192-2014 The petitioner adopted before the court that there is no provision in the law to grant an extension post-retirement and the extension notification may be set aside.

Last month, AGP Rana had filed a petition claiming that his constitutional mandate has been stolen by placing the department of CGA from his administrative control to the control of finance ministry, along with all officers working in it.

He had further alleged that the finance minister and secretary finance division wanted to post Tarin as the new AGP after removing the petitioner.

Rana had expressed apprehension that the respondents were planning to either book the petitioner in some false and bogus case or to assassinate him as imprisonment or death is the only way for appointing Tarin as the new AGP.

On July 8, a single member bench had issued a restraining order in favour of the AGP in which the court had directed the federal government not to intervene in the authority of the AGP.

CDA approaches court

In another matter, eight deputy directors of the Capital Development Authority (CDA) have approached IHC against the promotions of junior officers.

Deputy director Muhammad Asghar Zardari and other petitioners contended in the petition that they have been working in CDA since 1996 and were promoted as deputy directors in 2012.

The petition alleges that the authority has promoted juniors in grade-19 and appointed them as directors in various directorates in violation of the principle of seniority.

Published in The Express Tribune, August 22nd, 2014. Marchers health woes: CDA told to improve sanitation facilities

By Our Correspondent

Published: August 23, 2014

ISLAMABAD: The Pakistan Institute of Medical Sciences (Pims) administration has requested that the Capital Development Authority (CDA) health department improve sanitation-related facilities and the quality of drinking water for marchers.

Talking to The Express Tribune, Shaheed Zulfiqar Ali Bhutto (SZAB) Medical University, Pims Vice-Chancellor Prof Javed Akram said on Friday that he had a meeting with the CDA health directorate head in which he had requested improvements on both fronts.

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PLP NEWS ALERTS EMAIL No. 192-2014 “Due to unhygienic conditions and poor sanitation, there is a risk of water-borne diseases such as hepatitis, typhoid, gastroenteritis, and polio among marchers, which in turn could further affect the residents of the capital.”

He said the hospital has treated 320 marchers for the flu, sore throats, chest infections, gastroenteritis and other minor illnesses.

He said that he has also asked the CDA health directorate to provide face masks, soap and hand sanitiser to help prevent them from contracting diseases and to continue chlorination of drinking water.

Published in The Express Tribune, August 23rd, 2014.

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PLP NEWS ALERTS EMAIL No. 192-2014

OPEN MARKET FOREX RATES Updated at: 23/8/2014 8:01 AM (PST) Currency Buying Selling Australian Dollar 93.65 93.9 Bahrain Dinar 267.5 268 Canadian Dollar 91.75 92 China Yuan 16.25 16.4 Danish Krone 17.9 18.05 Euro 133.35 133.6 Hong Kong Dollar 12.9 13.05 Indian Rupee 1.62 1.64 Japanese Yen 0.96 0.97 Kuwaiti Dinar 354.25 354.5 Malaysian Ringgit 31.75 32 NewZealand $ 84.75 85 Norwegians Krone 16.3 16.45 Omani Riyal 261.75 262 Qatari Riyal 27.5 27.75 Saudi Riyal 26.75 27 Singapore Dollar 80.15 80.4 Swedish Korona 14.5 14.65 Swiss Franc 110.75 111 Thai Bhat 3.12 3.15 U.A.E Dirham 27.3 27.55 UK Pound Sterling 166.75 167 US Dollar 101 101.25

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PLP NEWS ALERTS EMAIL No. 192-2014

INTER BANK RATES Updated at: 23/8/2014 8:01 AM (PST) Bank Buying Bank Selling Currency TT Clean TT & OD Australian Dollar 93.6 93.79

Canadian Dollar 91.89 92.07

Danish Krone 17.91 17.94

Euro 133.51 133.78

Hong Kong Dollar 12.97 12.99

Japanese Yen 0.9684 0.9704

Saudi Riyal 26.99 27.05

Singapore Dollar 80.48 80.64

Swedish Korona 14.58 14.61

Swiss Franc 110.29 110.51

U.A.E Dirham 27.36 27.42

UK Pound Sterling 166.64 166.98

US Dollar 100.5 100.7

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PLP NEWS ALERTS EMAIL No. 192-2014 Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) As on Sat, Aug 23 2014, 04:00 GMT PKR PKR PKR Metal Symbol for 10 Gm for 1 Tola for 1 Ounce

Gold 24K XAU 41,640 48,517 129,517

Palladium XPD 28,876 33,645 89,816

Platinum XPT 46,216 53,850 143,752

Silver XAG 632 736 1,965

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

AUD 442 515 1,376 Dollar Canadian

CAD 451 525 1,402 Dollar

Euro EUR 311 362 967

Japanese

JPY 42,807 49,877 133,146 Yen U.A.E

AED 1,513 1,763 4,706 Dirham UK Pound

GBP 249 290 773 Sterling

US Dollar USD 412 480 1,281

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

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PLP NEWS ALERTS EMAIL No. 192-2014 Gold Rates & Silver Rate from major cities of Pakistan

A year by year reference of the daily Silver Price in Pakistan and history of Gold Rates in Pakistan Aug 22, 2014

Following table shows gold rates per Tola in Pakistan in Pakistani Rupess (PKR) in 24 carat per 10 Grams, 22 carat per 10 grams and sliver rates per 10 grams in pakistan.

City 24k per 10gm 24k per Tola 22k Per 10gm 21k Per 10gm Silver Karachi 41,742 48,700 38,264 36,524 643 Lahore 41,742 48,700 38,264 36,524 643 Multan 41,742 48,700 38,264 36,524 643 Faisalabad 41,742 48,700 38,264 36,524 643 Rawalpindi 41,742 48,700 38,264 36,524 643 Hyderabad 41,742 48,700 38,264 36,524 643 Gujranwala 41,742 48,700 38,264 36,524 643 Peshawar 41,742 48,700 38,264 36,524 643 Quetta 41,742 48,700 38,264 36,524 643 Islamabad 41,742 48,700 38,264 36,524 643 Sargodha 41,742 48,700 38,264 36,524 643

Source: Karachi Saraf.

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