Magazine - Islamabad Chamber of Commerce & Industry

A monthly Magazine of ICCIBUSINESSMagnateICCI bids farewell to High Commissioner of KenyaIslamabad Chamber of Commerce & Industry organized agrand ceremony to bid farewell to H.E. Mishi MasikaMwatsahu, outgoing High Commissioner of Kenya.Ambassador of Algeria H.E. Dr. Ahmad Benflis,Ambassador of Tunisia H.E. Mr. Murad Bourehla,Ambassador of Sudan H.E. Mr. Al-Shafie AhmadMohamed, Ambassador of Morocco H.E. Mr. MustaphaSalahodine, High Commissioner of Mauritius H.E. Mr. M-RDaureawo, Charge' D Affairs of Somalia Mr. Ali SheikhAbdullahi, Deputy Head of Mission of Egypt Mr. SherifNada, Director General Foreign Affairs Dr. MuhammadTariq and large number of business community was presentat the occasion.Speaking at the occasion, H.E. Mishi Masika Mwatsahu,High Commissioner of Kenya said she served in Pakistanfor 8 years and is taking away lots of love and goodmemories from Pakistan. She said she has great love forPakistan and on returning back to Kenya, she would apprisethe Kenyan and African people about the true potential ofPakistan.High Commissioner of Kenya said Pakistan and Kenyahave lot of opportunities to benefit from each other. Shesaid bilateral trade between the two countries has beengrowing, but still lot more needs to be done to improvetrade and economic relations. She said due to huge market,major powers are now focusing on Africa and it is high timethat Pakistan should turn to Africa for trade and exportswhile Kenya would provide Pakistan easy access to Africanmarket.She highlighted agriculture, tourism, transportation,manufacturing, telecommunication, energy including oil,gas, coal, mineral resources and construction as potentialareas of mutual cooperation between Pakistan and Kenya.She said lots of construction projects are going on in Kenyafor infrastructure development and invited Pakistaniinvestors to come and invest in Kenya. She thanked ICCIPresident, Director General (Foreign Affairs) and otherdignitaries for their support and hoped that ICCI wouldcontinue to cooperate with her successor to promote Pak-Kenya bilateral relations.In his welcome address, Zafar Bakhtawari, President,Islamabad Chamber of Commerce & Industry greatlyappreciated the efforts of H.E. Mishi Masika Mwatsahu,Zafar Bakhtawari, President ICCI presenting a bouquet of flowers to H.E.Mishi MasikaMwatsahu, outgoing High Commissioner of Kenya at the farewell given by ICCI.Diplomats of African countries are also seen at the occasionHigh Commissioner of Kenya for improving Pak-Kenyarelations during her tenure. He termed her as a dynamic andsincere diplomat who played a positive role in bringing twocountries closer to know each other.He said Pakistan and Kenya enjoy historical cordial relationsand share similar views on most international issues.However, these good relations are yet to be translated intothriving trade and economic relations as Pak-Kenya bilateraltrade of around half a million US dollars is not up to theirfull potential. He said Pakistan is keen to get access toAfrica while Kenya is a gateway to enter Africa. He said thatboth countries should increase exchange of businessdelegations and hold single country exhibitions to expandbilateral trade and exports.Dr. Muhammad Tariq, Director General, Ministry ofForeign Affairs paid tribute to the services of H.E. MishiMasaki Mwatsahu, High Commissioner of Kenya. Heassured that Ministry of Foreign Affairs would facilitateKenyan Embassy and ICCI for promoting direct contactsbetween the private sectors of both countries. Mr.Mahmood Ahmad Warraich, Senior Vice President ICCI inhis vote of thanks emphasized for more interactions ofKenyan Embassy with ICCI for exploring new areas ofcommon cooperation.Custom Modernisition facilitates importersCustoms department has introduced improved systems including WeBoc, Pax and Green Channel in order to modernize itsworking. WeBoc is a modern technique that was introduced to facilitate the importers. With the help of this facility, theimporters could fill up their GDs(Goods declaration) on web and submit it to Custom Department. Customs also introducedPax (Pakistan Automated Computerized System) in order to enhance its revenue collection, while the Green Channel at airportshad been installed in order to facilitate the passengers. Custom Department informed that they have five Collectorate includingPreventive and Enforcement, Appraisement, Pax, Export and Port Qasim to collect the revenues.Source: www.customtoday.com.pk5

A monthly Magazine of ICCIBUSINESSMagnateImplementation of PTA will open trade doors for Pakistan-Indonesian EnvoyAmbassador of Republic of Indonesia to Pakistan,H.E.Mr.Burhan Muhammad has stated that his prioritieswere to enhance economic cooperation between Indonesiaand Pakistan and to connect the business communities oftwo countries which would further strengthen mutuallinkages between two brother Muslim countries.He highlighted that during his visit to Islamabad Chamberof Commerce and Industry (ICCI). He said that theIndonesia-Pakistan Preferential Trade Agreement (PTA)was a landmark development in the bilateral history of twocountries which will not only raise bilateral trade volume butalso open doors for Pakistani businessmen to penetrate inthe emerging Asean market.The Ambassador apprised that there was some delay in theenforcement of PTA as notification has not been issued yet.He said that in this connection he will also visit Jakarta tomeet Indonesian Trade Minister. He stated that besideseconomic and commercial cooperation, Indonesia alsointended to invest in power projects as well as Pakistan canget benefit of Indonesian expertise in coal sector forproducing electricity. He said that Pakistan and Indonesiaare also negotiating to start a project of Coal Power Plan inKarachi for generating electricity by using domestic coalwhile the rest will come from Indonesia.He said that Indonesia and Pakistan have had a remarkablehistory of brotherly relationship and two countries haveenjoyed sound and steady commercial interaction since lastseveral decades. He said that President of Indonesia,H.E.Mr.Susilo Bambang sent him to Pakistan with specialimpression to improve the trade and economic link betweenthe two countries.Speaking on the occasion, Mr.Zafar Bakhtawari, PresidentICCI gave a detailed briefing to the Ambassador onavailable trade and investment opportunities in Pakistan andsaid that Pakistan also values its relations with Indonesiaand desires to further strengthen the existing relations.He was of the view that Pakistan and Indonesia are loosingZafar Bakhtawari, President ICCI sharing views with H.E.Mr.Burhan Muhammad,Ambassador of Republic of Indonesia to Pakistan on his visit to Chamber House,Saeed Ahmad Bhati, VP of ICCI also present in the meetingthe warmness of their relations which were very strong atthe time of Mr.Sukarno, former President of Indonesia.ICCI President expressed hope that Mr.Burhan Muhammadwith his dynamic vision would bring that era back in therelation of both the countries.Mr.Bakhtawari said that there should be direct air linkbetween Pakistan and Indonesia which would bring businesscommunity of both the countries closer to each other aswell as promote regional connectivity. He said that both thesides must ensure liberal visa policy to enable thebusinessmen get visa easily and meet each other which isimperative to boost trade ties between the two countries.ICCI President termed the existing volume of tradebetween the two countries very low which stood around$1.3billion and stressed that it should be increased up to$5billion. He also informed the Ambassador that ICCI hasplanned to organize Asean Capital Chambers Conference inIslamabad aiming to promote mutually beneficial relationsbetween Pakistan and Asean countriesPakistani Entrepreneurs invited to InternationalTrade Fair in CubaCuba is organizing FIHAV 2013 in November 2013 inHavana, which is the largest annual multi-sector trade fairand Pakistani entrepreneurs should take active part in thisevent to showcase export potential of their products. H.E.Mr. Jesus Zenen Buergo, Ambassador of Cuba made theseremarks during an interaction with local businessmen atIslamabad Chamber of Commerce & Industry.He said FIHAV 2013 would be a complete national &rd thinternational exhibition that shall be held from 3 to 9November 2013 in Havana and large number of productsincluding advanced materials, agricultural technology &equipment, food & beverages, automotive, bio-industries,building products, chemicals, consumer products, electricpower equipment & services, information &communications technology, manufacturing technologies,metals, minerals and oil & gas equipment etc. would be putup for display.He said over 3000 companies from 62countries participated in the 2012 edition of FIHAV. Thusthe event offers tremendous opportunity to Pakistanibusinessmen to participate and establish contacts with theircounterparts in areas of interest, exchange experiences and6

A monthly Magazine of ICCIBUSINESSMagnatefully avail these platforms and concessions for promotingtrade, investment and joint ventures.He said ICCI is planning to host SAARC Capital ChambersConference in September this year and Nepal Embassyshould support this initiative as the purpose of thisconference is to promote regional integration and trade inSAARC region.ICCI for direct air links with Kazakhstan to promotebilateral tradeMr. Zafar Bakhtawari, President, Islamabad Chamber ofCommerce & Industry (ICCI) visited Embassy ofKazakhstan in Islamabad and held a meeting with H.E. Mr.Bakhitbek Shabarbayev, Ambassador of Kazakhstan todiscuss ways and means to further improve bilateral tradeand economic relations between the two countries. Mr.Bakhtawari said Pakistan and Kazakhstan enjoy goodhistorical, cultural and political relations and these relationsshould be translated into thriving commercial and economicopportunities for the benefit of both countries.He said Kazakhstan should support Pakistan in energysector which will help us in promoting industrial activities.He said both countries have good potential to enhancecooperation in trade and investment, agriculture, jointventures in manufacturing/SMEs, petroleum and naturalresources, banking and finance, science and education,information technology, health and tourism. However, forthis to happen, direct connectivity between both countries isthe key.ICCI President stressed both countries should seriouslyconsider establishing direct air links as lack of direct flightsand transportation links between Pakistan and Kazakhstanare the major hindrances in improving bilateral trade. ThePakistani businessmen have to go to Kazakhstan via Dubaior Urumqi, which is very expensive and time consumingwhile direct flights can greatly facilitate in connectingprivate sectors of both countries.Objectives of banking sectorreform StrategyThe BSS has the following ten main areas of reform:-1. Create a more diverse and inclusive banking sector2. Improve consumer protection and financial education3. Strengthen competition and efficiency4. Consolidate and strengthen the banking sector5. Strengthen prudential regulation and supervision6. Introduce framework for consolidated supervision7. Develop a financial safety net8. Strengthen SBP autonomy, accountability and governance9. Develop a more balanced financial system10. Develop the financial infrastructureSource: State Bank of PakistanHe said Turkey is giving visa on arrival to those Pakistanis whohold valid visa of UK, USA or Shenzhen countries andKazakhstan should also extend similar facility to Pakistanibusinessmen which will greatly help in exploring new areas ofmutual cooperation. He assured the Ambassador that ICCIwould cooperate with Kazakhstan Embassy in organizing aPak-Kazak Business Forum in the last week of Aug: 2013 orin Sep: 2013 and would take a business delegation toKazakhstan soon.Speaking on the occasion, H.E. Mr. Bakhitbek Shabarbayev,Ambassador of Kazakhstan said that his Embassy plans toorganize a Pak-Kazak Business Forum in August 2-013 andsought the cooperation of ICCI for making this event asuccessful one. He proposed the establishment of a Pak-Kazak Business Council on permanent basis to bring bothcountries further closer in commercial and economic fields.He greatly appreciated the proposal of Mr. Bakhtawari for visaon arrival to Pakistanis in Kazakhstan and ensured that hewould take up this matter with his government to make visaprocedures easier for Pakistani entrepreneurs.He said ICCI should take a business delegation to Kazakhstanto explore potential areas of mutual collaboration. Heinformed that both countries had signed an agreement toenhance economic & technical cooperation, promote marketresearch, develop commercial relations and expand projectsbetween the two countries. It is time to take practical measuresto realize true objectives of said agreement. He ensured thathis Embassy will work with ICCI for improving trade andeconomic relations between Pakistan and Kazakhstan.8

A monthly Magazine of ICCIBUSINESSMagnateLibya invites Pakistani investors to invest inconstruction projectsMr. Abdul Wahed Abugila, Charge'd Affairs, Embassy ofLibya visited Islamabad Chamber of Commerce & Industryand addressing the business community informed that lotof construction projects were underway in Libya, whichoffered huge investment potential to foreign investors. Heinvited Pakistani investors to explore investmentopportunities in construction, infrastructure developmentincluding roads, bridges, buildings and other ongoingprojects as Libya preferred Pakistani investors compared toother countries.He said Libya was also interested in Pakistan's cooperationin trade, industry, agriculture and other potential areas. Heassured that he would request his government to considergiving land on lease to Pakistani investors that would help inimproving agricultural productivity in Libya. He said Libyawas also giving preference to Pakistani labor as they wereplaying crucial role in the economic development of Libya.Libyan Embassy was issuing 150-200 daily visas toPakistanis as there was enough scope for Pakistani talent inLibya. Mr. Abdul Wahed Abugila stressed for the need offrequent exchange of trade delegations, increasedcooperation between trade bodies of two countries andactivation of Pak-Libya Business Council to explore newareas of mutual cooperation and start a new chapter ofgood relations between the two countries.Speaking on the occasion, Mr. Zafar Bakhtawari, President,Islamabad Chamber of Commerce & Industry said thatbeing the brotherly Islamic countries, Pakistan and Libyaenjoyed good historical relations. However, there was a needto transform them into flourishing trade, commerce andeconomic relations to achieve mutually beneficial results. Hesaid that Pakistan was an agricultural country and Libyashould give land on lease to Pakistani agriculturalists so thatthey could contribute in developing agriculture sector inLibya and improve its agricultural productivity. He saidZafar Bakhtawari, President ICCI presenting insignia to Abdul WahedAbugila, Charge dAffairs, Embassy of Libya on his visit to ICCIPakistani investors were doing this in Sudan and achievinggood results. Therefore, Libya should give seriousconsideration to this proposal seriously which would bringthe two countries further closer.Mr. Bakhtawari said ICCI would soon start initiatives toactivate Pak-Libya Business Council as it would help inpromoting direct connectivity between the private sectorsof both countries. He said Libyan Embassy should shareinformation regarding planned trade fairs & exhibitions inLibya with ICCI so that our businessmen could participatein such events and explore business opportunities inpotential areas. He said ICCI would take a businessdelegation to Tripoli to explore areas of bilateralcooperation. He also invited a delegation of Libyanentrepreneurs to ICCI and assured of providing all sorts ofhelp and support to make its visit productive. He alsostressed for regular interaction between Embassy andChamber to keep good relations on track.Netherlands ready to cooperate with Pakistan inEnergy SectorNetherlands is an advanced economy and has thetechnology & expertise to cooperate with Pakistan in solar,wind, coal & bio mass energy to mitigate its energy woes,said Mr. Robert Dresen, First Secretary/Head EconomicAffairs of Netherlands Embassy during a visit to IslamabadChamber of Commerce & Industry accompanied by Mr.Peter A. Felix, Commercial Officer.He said Netherlands is amongst the top 20 economies ofthe world with GDP of US$ 820 billion while Pakistan isemerging as a huge consumer market and Netherlandswants to cooperate with Pakistan in power generation,energy saving, shipping, ports development, waterpurification, dairy farming agriculture etc. to achievemutually beneficial outcomes.He said located at the gateway to the European Union,which is the world's largest single market, Netherlands is aglobal hub for innovation and high tech value addedproducts. Pakistan can reap rich economic benefits byimproving collaboration with Netherlands in areas ofmutual interest. He said Netherlands has access to limitedarable land, but due to advanced technology and bestpractices, it is the second largest exporter of agriculturalproducts in the world. Pakistan can achieve phenomenalresults in its agriculture productivity by having closecooperation with Netherlands. He said Netherlands hasspecial technology and expertise in desilting of dams andDutch companies can help in desilting of Tarbela andMangla dams which will help Pakistan to improve energysupply. He said Pakistan can also benefit from Dutch9

A monthly Magazine of ICCIBUSINESSMagnateZafar Bakhtawari, President ICCI exchanging views on matters of Pak-Netherlandsbusiness relations with Mr. Robert Dresen, Head of Economic Affairs, Netherlandsembassy on his visit to ICCIPrivate Sector Investment program which aims to stimulategrowth and create jobs in emerging markets.Speaking at the occasion, Zafar Bakhtawari, President,Islamabad Chamber of Commerce & Industry said thatenergy shortage has badly affected trade and industry andstressed that Pakistan should seriously considerNetherlands' cooperation, especially for desilting of itsdams to increase cheap hydro power generation.He said bilateral trade between Pakistan and Netherlands isstill below one billion US dollars while both countries havegood potential to work together in many areas includingenergy, IT & Hi-tech industries, agriculture, dairy farming,logistics, chemicals, water, environment etc. for trade & jointventures. He underlined that governments of bothcountries should facilitate their businessmen for enhancingcollaboration in these areas. ICCI President appreciated thecontribution of Dutch companies like Shell, Phillips andUnilever in Pakistan's economy. He said Pakistan's economyhas enormous potential to grow and hoped that with theelection of a business friendly government; more Dutchcompanies would consider Pakistan as a good destinationfor investment and joint ventures.Resolving Energy Crisis top most priority of theGovernment– Ahsan IqbalPML-N government is fully aware of the negative impactof load shedding on trade & Industry and PlanningCommission is developing short, medium and long-termplans to overcome energy crisis.This was said by Mr. Ahsan Iqbal, Federal Minister forPlanning and Developing while exchanging views with adelegation of Islamabad Chamber of Commerce &Industry that called on him led by Zafar Bakhtawari,President, ICCI.The Federal Minister said that overcomingthe energy crises is the top most priority of the governmentand we would use all options to minimize ill effects ofenergy shortage on business and economy. He said anamount of Rs.225 billion has been allocated to energysector in the budget and its positive impact would startemerging in coming months. Ahsan Iqbal said PML-Ngovernment would make business-friendly policies so thatprivate sector could assume bigger role in the economicdevelopment of the country. He assured that all problemsof trade and industry including power shortage would beresolved as the government is giving key focus toinvestment promotion, industrialization, agriculturalreforms and infrastructure building.Speaking at the occasion, Zafar Bakhtawari, President,Islamabad Chamber of Commerce & Industrycongratulated Mr. Ahsan Iqbal on taking charge as FederalMinister for Planning & Development and hoped thatunder his guidance, Planning Commission will come upwith innovative plans to facilitate the growth of commercialand industrial activities. He appreciated governmentdecision to allocate Rs.500 billion in the budget to clearcircular debt as it would bring positive change in energyscenario. He said the basic reason of current power crisis isthe policy failure of governments as no governmentbothered to foresee the rising energy needs of the countryZafar Bakhtawari, President ICCI with delegation exchanging views along with Ahsan Iqbal,Federal Minister for Planning and Development. VPs and senior members of ICCI arealso present at this occasionand make advance planning accordingly to meet such needs.He stressed for harnessing cheap energy sources includinghydro and coal as over 50 percent reliance on furnace oil forpower generation is the major cause of very highproduction cost in Pakistan. ICCI President showedconcern on allowing FBR access to bank accounts ofcustomers for improving tax collection as it would createharassment in business community and spark capital flightcausing damaging effect on the economy. He also expressedreservations on 0.5 percent income support levy on netmovable assets and increasing turnover tax from 0.5 percentto 1 percent in the Budget 2013-14 and called forwithdrawal of these proposals to save business communityfor more difficulties.Mr. Mehmood Ahmad Warraich Senior Vice PresidentICCI, Mian Akram Farid and Mr. Baser Daud formerPresidents ICCI, M/s. Khalid Ch & Babar Ch were also inICCI delegation.10

A monthly Magazine of ICCIGovernment should withdraw hike in GST–Senator Haji Muhammad AdeelBUSINESSMagnateSenator Haji Muhammad Adeel is addressing the business community on his visit to ICCIZafar Bakhtawari, President ICCI also seen in the pictureGovernment should seriously consider withdrawing onepercent increase in General Sales Tax and bring it downfrom 17 percent to 15 percent as hike in GST would createa new wave of inflation and make common man's life moremiserable. This was observed by ANP's Senior VicePresident and Senator Haji Muhammad Adeel whileaddressing business community at Islamabad Chamber ofCommerce & Industry.He said Federal Minister for Finance Muhammad Ishaq Darhad himself opposed increase in GST as Senator whenPML-N was in opposition and it is strange that after cominginto power, he has proposed one percent hike in GST. Hesaid Senate's Standing Committee on Finance hasunanimously approved 113 recommendations in the Budget2013-14, which have been sent to the government. Hecalled for incorporation of these recommendations in theFinance Bill 2013 to make Finance Bill 2013 a peoplefriendly budget.He said every income including agricultureincome should be taxed to improve tax collection. He saidno one including trade and industry is satisfied with Budget2013 as PML-N Government has made this budget in haste.He said government should take business community onboard on important policies and assured that he wouldhighlight their issues at relevant forums for resolving thesame.In his welcome address, Zafar Bakhtawari, President,Islamabad Chamber of Commerce & Industry said thatbeing a businessman, Senator Haji Muhammad Adeel alwaysserved the cause of business community in politics. He saidbusinessmen should have a group in Senate and NationalAssembly to resolve their problems and added that SenatorHaji Mjuhammad Adeel should work for establishing such agroup in parliament. He said businessmen are keystakeholder in the economy and it is better that governmentshould engage them in a continuous consultation processwhile formulating energy, investment, trade and economicpolicies so that consensus policies could be made to steerthe economy out of troubles.Zafar Bakhtawari stressed that government should comeout of the influence of IMF and make independent policiesas IMP dictated policies have always caused negative impacton the business and economic activities. Munawar Mughal,former President ICCI said that Chambers of Commerceof the country always sent budget proposals to thegovernment, but the same were not properly entertained,which is a cause of frustration of business community.Fazal Elahi, former Senior Vice President FPCCI also spokeon the occasion and praised the services of HajiMuhammad Adeel as Politian for the people.Pakistan-China firm sign MOU forRing Road ConstructionA Memorandum of Understanding regarding construction of WesternLoop of the Ring Road Lahore was signed between Punjab governmentand international Chinese company, China Civil EngineeringConstruction Corporation. Chairman Ring Road Authority and DirectorOverseas Corporation of China Civil Engineering ConstructionCorporation signed the document.Punjab Chief Minister Shahbaz Sharif, Provincial Minister for Housing,and concerned officers were present. Under the agreement, the ChineseCorporation will take part in the bidding process of construction of 26-kilometer long portion of Ring Road from MultanRoad Maraka to Niazi Interchange which has been named as Western Loop. Besides, provision of experts, the Corporation willalso plan and designed the project.Lahore Ring Road will be completed under a phased programme in accordance withinternational standard and in the next phase, the Western Loop from Multan Road Maraka to Niazi Interchange will beconstructed.Source: www.pcq.com.pk11

A monthly Magazine of ICCIBUSINESSMagnateNeed of Bureaucracy's support to private sector stressedfor economic revivalSupport of bureaucracy to private sector is very importantfor reviving the economy and public servants should alwaysplay a facilitative role for the smooth growth of businessactivities. This was stressed by Mr. Zafar Bakhtawari,President, Islamabad Chamber of Commerce & Industrywhile addressing a batch of 54 OMG trainee Officers whovisited ICCI led by Syed Anwar ul Hasan Bokhari, DirectorGeneral, Secretariat Training Institute, Islamabad as part oftheir grooming by visiting prestigious organizations. Thethofficers are undergoing 35 Specialized Training Program atthe Secretariat Training Institute, Islamabad.Mr. Bakhtawari said normally businessmen are blamed forprice hike and inflation, which is not true. He said prices arelinked to demand & supply phenomenon and when demandgoes up as often happens in Ramadan while supply is less,then prices go up. He said people could maintain prices atreasonable levels by rationalizing their purchasing behavior.If they is a shortage of supply and people reduce theirpurchasing, then prices could come down, he added.ICCI President said that businessmen are playing significantrole in the development of the national economy andproviding jobs to millions of people. Therefore, publicservants should give due respect to business communitywhile dealing with them and give preference to addressingtheir problems. He said those societies have achieved betterprogress that gave dignity and respect to businessmen andour civil servants should also adopt this approach.He said young officers can also play a crucial role inimproving the image of Pakistan through efficientperformance of their duties whether in Pakistan or abroad.He said one sided picture of inflation is portrayed on mediaand media should also invite businessmen to explain theirpoint of view so that people could be informed about thefacts.Speaking on the occasion, Syed Anwar ul Hassan Bokhari,Director General, Secretariat Training Institute appreciatedZafar Bakhtawari, President ICCI in a group photo with the batch of 54 OMG traineeofficers led by Syed Anwar-Ul-Hasan Bokhari, Director General Secretariat TrainingInstitutethe efforts of Islamabad Chamber of Commerce &Industry for serving the cause of business community andplaying tremendous role in the development of localeconomy. He said generally government departments workin isolation while they should always take businesscommunity on board on important matters to achieve betterresults for the country.He said bringing trainee officers to ICCI was aimed atbridging the gap between public and private sectors andgiving young officers an opportunity of interaction withbusinessmen so that both could know each other's point ofview and develop better understanding. He said we have towork together through public-private partnership to pullPakistan out of current challenges and put it on the path ofsustainable economic development. He thanked PresidentICCI for his valuable input and added that there should beregular interaction between public & private sectors to makeconsensus economic policies.Management TipsDon't kill the messenger'You must have the accurate information your career and yourorganization depend upon that. People must not fear you bringing youbad news or fear telling you things you don't like to hear. if you killthe messenger, you end up hearing only half-truths. Thanks themessengers.Compassion is a business assetCompassion comes with the confidence to be gentle, while remaining strong. It is understanding, caring and sometimesforgiving-potent and powerful human motivators. Having and showing corn passion will build loyalty.Source: Management Outlook-PIMS12

A monthly Magazine of ICCITDAP shows interest to support ICCI for CapitalChambers ConferenceBUSINESSMagnateTrade Development Authority of Pakistan is organizingExpo Pakistan 2013 in September this year and it is theopportune time that Islamabad Chamber of Commerce &Industry should hold its Capital Chamber Conference ofASEAN countries so that TDAP could consider supportingICCI for making this Conference more productive. This wasstated by Ms. Roubina Taufiq Shah, Director, TDAPIslamabad during her visit to ICCI.He said Expo Pakistan is the biggest trade fair in Pakistan,which showcases the largest collection of Pakistaniexportable products while many foreign exhibitors fromneighboring and regional countries also use this platform tolaunch their products. Thus it would be the best occasionfor ICCI to organize ASEAN countries Capital ChambersConference as many businessmen of these countries areexpected to visit Pakistan for participating in Expo 2013.Director TDAP said that ICCI should share with us thewhole plan of its activities that would be undertaken duringCapital Chambers Conference so that TDAP could evaluateits viability and consider collaborating with ICCI to makethe event successful for the country. She also invitedmanufacturers of the federal capital to take active part inExpo 2013 and increase prospects of their exports.Speaking on the occasion, Mr. Zafar Bakhtawari, President,Islamabad Chamber of Commerce & Industry revealed thatICCI plans to host Capital Chambers Conference ofSAARC, ECO, D-8 and ASEAN countries and the mainpurpose of these events is to promote direct contacts andbuild networking between the private sectors of Pakistanand said countries. Therefore TDAP should provide itssupport to ICCI for hosting these conferences as theywould enable businessmen to explore new areas of mutualZafar Bakhtawari, President, Islamabad Chamber of Commerce & Industry exchangingviews with Robina Taufiq Shah, Director TDAP Islamabad on improving Pakistan's tradeand exportscooperation for trade, investment and joint ventures.He said many foreign elements are active to isolate Pakistanand it is high time that government should support allinitiatives of private sector aimed at opening up Pakistan toforeign entrepreneurs that will help in projecting a positiveimage of Pakistan to outside world. He was optimistic thatevents like Expo Pakistan 2013 and Capital ChambersConference would contribute positively for presenting a softimage of the country.During the meeting, many other issues which are consideredas main hindrances in trade and exports also came underdiscussion and it was resolved that TDAP and ICCI wouldwork together to resolve problems and promote Pakistan'strade and exportsGreater police-community cooperation key to controlcrimes – Jamil HashmiZafar Bakhtawari, President, Islamabad Chamber of Commerce & Industry presentinginsignia to Jamil Hashmi, Superintendent of Police (Saddar) IslamabadGreater police-community collaboration is the key tocontrol crimes and improve law & order situation as withoutpublic cooperation, police cannot achieve better results.This was stated by Mr. Jamil Ahmad Hashmi,Superintendent of Police (Saddar) Islamabad whileaddressing business community at Islamabad Chamber ofCommerce & Industry.He discussed different options with businessmen forimproving security situation in the federal capital. Heunderlined that partnership-based and collaborative effortsbetween policy and community will prove more efficientand effective to preventing crimes & improving the state oflaw & order. Jamil Hashmi emphasized that people shouldcome forward without any fear to provide leads to policeabout any doubtful activity so that police could takecorrective measures. He said that Islamabad Police hasalready traced and nabbed many terrorists including 2 car13

A monthly Magazine of ICCIBUSINESSMagnatetheft gangs with the cooperation of people. He stressed thatwe should work jointly to building confidence and trustbetween police and community that would greatly help inimproving law & order situation. Jamil Hashmi saidbusinessmen are playing a vital role in promoting businessand economic activities and assured that Islamabad Police &ICCI will work together to address business community'ssecurity related problems.In his welcome address, Zafar Bakhtawari, President,Islamabad Chamber of Commerce & Industry highlightedthe problems being faced by the businessmen. He saidabduction of businessmen for ransom, rising incidents ofrobberies from shops and banks, car thefts and street crimeshave created a sense of insecurity in businessmen and policeshould play more active role to make Islamabad a crime-freecity. He said police should install scanning gates at allentry/exit points to improve security situation while checkposts should also be shifted to border areas as great numberof check posts within the city is create problems and causeinconvenience to people.He was of the view that improvement in law & ordersituation in the federal capital would help in improvingbusiness & industrial activities, attracting more investmentand creating more jobs. Therefore, all possible sourcesshould be utilized to make Islamabad a model city in termsof security for the rest of the country.IESCO Customer Services Centre in G-9 Markaz inauguratedRole of power distribution companies is vital for theeconomy as promotion of trade and industry depends ontheir good performance. Therefore, these companies shouldfocus on providing best services to their customers tofacilitate the growth of business activities and ease the lifeof common man. This was observed by Mr. ZafarBakhtawari, President, Islamabad Chamber of Commerce &Industry (ICCI) and Director Board of IESCO whileinaugurating a Customer Services Centre of IESCO at G-9Markaz, Islamabad.Mr. Mohsin Khalid Chairman & Mr. Tariq Sadiq DirectorIESCO Board, Malik Yousaf Awan CEO IESCO, MianAkram Farid former President ICCI, Mr. Mehmood AhmadWarraich, Senior Vice President ICCI and many otherbusinessmen were present at the occasion.Mr. Bakhtawari lauded the initiatives of IESCO forexpanding the network of its Customer Services Centers inRawalpindi/Islamabad and said it should open more suchCustomer Services Centers in other major commercial hubsof Islamabad so that its valued customers could be furtherfacilitated.He said that in 2001, Pakistan had 4,000megawatts of excess power capacity, but today the energycrisis has emerged as a big threat to the economy. He urgedupon the new government to give top most priority to thisissue in its economic agenda.He said that during election campaign, Mian Nawaz Sharifhad vowed that if voted to power, he would conduct aneconomic explosion during his new term, which was veryencouraging. However, he added that without achievingenergy security, the dream of economic explosion couldnever be materialized. Therefore, if the government wasserious in improving economy, it should work on warfooting basis to tackle the energy problem.Speaking on the occasion, Malik Yousaf Awan, ChiefExecutive Officer, Islamabad Electric Supply Company(IESCO) said that IESCO was striving hard to provide bestservices to its customers and inauguration of this CustomerServices Center was another step to this direction. He saidcustomers would get many services from IESCO CustomerServices Centers including installments of bills, issuance ofduplicate bills, redressal of complaints and many more14Zafar Bakhtawari, President, Islamabad Chamber of Commerce & Industry presentingbouquet of flower to Malik Yousaf Awan, CEO IESCO Boardservices under one roof and added that IESCO was the firstone to introduce modern technologies to facilitate itsvaluable customers. Malik Yousaf Awan said IESCO wasthe only power distribution company that has brought downits losses to single digit level and it would continue tofurther improve its performance. He said businessmen wereits high revenue generating customers and were playing vitalrole in improving the local economy. Therefore, IESCOwould try to come up with more innovative services tofacilitate them so that they could further expand theirbusinesses and create new jobs. He also vowed to providemaximum assistance to the masses and thanked PresidentICCI for inaugurating IESCO CS Center.Trade links of the Italian companies and exhibitionsItalian Development Committee-IDC www.idcpakistan1.orgItalian Tourism Boardwww.enit.itICE Made in Italywww.italtrade.comList of Chambers in Italywww.tuttocamere.itConfidustria-Confederation of ItalianIndustrieswww.confindustria.itExhibitions in Italywww.aefi.itInvest in Milano-Italywww.investinmilan.comInvest in Italywww.invitalia.itSource: Embassy of Italy, Islamabad

A monthly Magazine of ICCISalient FeaturesCustoms Budgetary Measures 2013-14BUSINESSMagnateObjectives:• Relief to general public.• Encouraging growth and investment.• Reducing cost of doing business.• Improving regulation and enforcement.Relief Measures:(a) Further reduction in duty& taxeson HybridElectricVehicles (HEVs) ranging from 25% to 100%,according to their engine capacity.(b) Duty free import of “bio re-absorbable vascularscaffold” (heart stents) to decrease their cost for heartpatients.(c) Exemption of duty and sales tax on energy savingtubes presently @ 20% duty to encourage use ofenergyefficient electrical equipment.(d) Streamlining and deregulation of the procedure forexempt import of renewable energy resourcescompatible equipment to promote their use andincentivize investment in this field.(e) Reduction of customs duty on office or school suppliesfrom 25% to 20% to lower their price and reduceclassification disputes.(f) Duty & sales tax free import of solar submersiblepumps presently @ 20% duty to encourage use ofenergyefficient electrical equipment.(g) Reduction of duty on water treatment &purifying machinery and equipment from 20% to 15%to make them accessible to general public.(h) Streamlining the procedure for re-import of machinery& equipment sent abroad for repair etc by industrialimporters.(i) Reduction of customs duty on Medium Density Fiber(MDF) Board.(ii) Streamlining of Tariff Structure to IncentivizeGrowth and Investment:(a) Creation of separate PCT codes of newlyindigenized vehicles to Incentivize local auto industry.(b) Creation of new PCT code for classification of satellitephone and water dispenser to reduce classificationdisputes and improve import statistics.(c) Editorial corrections of description and classification inthe Tariff.(d) Regulatory control on exempt/concessionaryimport of agricultural machinery, tourism sector,packaging industry and pharmaceutical sector is beingstrengthened to ensure that the benefit is availed bybonafide importers only. Editorial changes forsimplification of concessionary SROs is also beingmade to remove duplications, spelling errors orredundant entries.Revenue Measure:Increase in duty on betel nuts from 15% to 20% and betelleaves from Rs.200/kg to Rs. 300/kg to discourage their useon account of adverse health effects.Legislative Changes:(a) Amendment in section 2 (la) of the Customs Act, 1969will provide legal cover for filing of transshipmentgoods declaration in Computerized Clearance System.(b) Introduction of new section 3DDD in theCustoms Act, 1969 to provide legal cover to theDirectorate General of Input Output Co- efficientOrganization (IOCO).(c) Amendment in section 14-A of the CustomsAct, 1969 whereby terminal operators/custodian of goodswill be bound to entertain the delay and detentioncertificates issued by customs authorities for waiverof demurrage charges. This measure will mitigatethe financial hardship faced on this count by genuineimporters.(d) Amendment in section 14-A of the Customs Act, 1969will require the custodian of goods/terminaloperator to provide adequate security and residentialaccommodation to the customs staff.(e) Sub-section (4) of section 32 empowers theappropriate officer to determine payable amount. Presentlythis section does not cover the liability found on account ofPost Clearance Audit. Inclusion ofSub-section-3A in sub-section 4 will fulfill this legalrequirement.(f) Amendment in section 81 of the Customs Act, 1969, todelete Post Dated Cheque as an acceptable securityagainst provisional assessment.(g) Section 80-A appearing in sub-section 2 ofSection 83 is being proposed to be omitted. Thereference of section 80-A under section 83 ismeaningless since section 80-A is already omitted.(h) Amendment in section 179 of the CustomsAct, 1969 will fix the adjudication powers in caseof exported goods in relation to their FOB value asagainst duty and taxes in case of imported goods.(i) Amendment in section 196 will authorize Directorof Customs Valuation to file appeals before the High Court insuch cases where he is aggrieved by the orders of the Tribunal.(j) Amendment in section 202 B of the Customs Act, 1969 tocorrect the nomenclature of Customs Service of Pakistan.Source: www.fbr.gov.pk15

A monthly Magazine of ICCIBUSINESSMagnateStatistical Analysis of textile industry in PakistanPakistan is the 8th largest exporter of textile products inAsia. This sector contributes 9.5% to the GDP andprovides employment to about 15 million people or roughly30% of the 49 million workforce of the country. Pakistanis the 4th largest producer of cotton with the third largestspinning capacity in Asia after China and India, andcontributes 5% to the global spinning capacity.For Pakistan which was one of the leading producers ofcotton in the world, the development of a textile Industrymaking full use of its abundant resources of cotton hasbeen a priority area towards industrialization. At present,there are 1,221 ginning units, 442 spinning units, 124 largespinning units and 425 small units which produce textileproducts. Even with so many advantages, Pakistan's totalshare in global textile trade is less than 1%. To some thismay seem like a depression state of affairs. But to others, itis simply an opportunity. The country has almost zero shareof branded and high-value fashion and sportswear textile inglobal markets, despite huge public demand for suchproducts in Europe and the US, which is being fulfilled byour South Asian competitors, including India, China andBangladesh. Pakistan's total exports in this sector are barely$50 million.Pakistan gets about $10.2 billion of its $12.5 billion textileexport revenue from 20 countries. However, it accounts formerely 5.7% of the total textile imports of these 20countries.China is the second largest buyer of Pakistani textiles,importing $1.527 billion of textiles last fiscal. Unlike USwhere mostly value added textiles are imported, China buysonly cotton yarn and cotton fabric from Pakistan.And the Chinese appetite for yarn is about to go up,exponentially. China's aggressive cotton stockpiling policyhas pushed up domestic prices, forcing the world's largesttextile industry to boost imports of yarn by as much as athird in 2013, while production moves to southeast Asia,drawn by lower costs there. Beijing's stockpiling moves,launched in 2011 and designed to support farmers, haveheld domestic cotton prices about 40% above world levelsas the country has built a reserve that traders estimate tostand at about 10 million tons. Chinese textile mills areturning to neighbors such as India and Pakistan to buycotton yarn. China's cotton yarn imports from September16to November 2012 rose 56% year-on-year to 409,877 tons.Imports over the year to August 2012 were 1.3m tons for anannual increase of 43%, according to official customs datapublished by industry website cncotton.com. But traders saythe actual figure could be more than twice that, if theofficial data is combined with cargoes imported throughborder trade with Vietnam. China is expected to issue extracotton import quotas to textile mills in April after purchasesfor the government's stockpile cut domestic supplies.Themarket expects Beijing to allocate as much as 800,000 tonsof import quotas, most of which will be issued to textilemills that export their products. That will add to 894,000tons of low-tariff quotas issued earlier this year.Pakistan already exports about 70% of its total yarn exportsto China and Hong Kong. So if demand jumps 50% ormore, the impact on Pakistan yarn exports can be huge,which coupled with falling local demand could be a lifelinefor a large sector of our industry.• Pakistani textile products accounted for a meagre 3.3%or $1.07b of total UK's textile imports in previous fiscal• Pakistan's textile exports accounted for 12.4% or$4.61b of total Chinese textile imports in fiscal 2012.• Pakistan accounted for just 2.98% or $2.98b of totalUS's textile imports in the fiscal year 2011-12.• Pakistani textile products accounted for a paltry 1.6%or $0.88b of total German textile imports in the fiscal year2011-12.• Pakistani textile products accounted for 0.7% or$0.888b of total Indian textile imports in fiscal 2012.Source: Media ScanningTextile sector to improve tremendously during 2013-14Textile sector is expected to grow at a good pace as European Union (EU) has supported Pakistan's effort to integrate into theglobal economy by granting Pakistan's export EU-reduced tariffs under the EU's Generalized System of Preference (GSP)during the year 2013-14. This allows almost 20 percent of Pakistani exports to enter the EU at zero tariffs while a further 70percent is allowed to enter at preferential tariff. Pakistan's exports are dominated by textile and clothing, up to the value of 2.6billion euros while EU imports textiles and clothing with a value of 3.5 billion euros annually therefore; chances of growth oftextile sector are bright. As far as financial progress of textile sector is concerned, an allocation of Rs 315 million has beenappropriated for textile sector for financial year 2013-14 for the five projects. Major projects to be carried out in textile sectorduring 2013-14 are: Pak-Korean Garments Technology Training Institute, Karachi (Rs 300 million); Lahore Garment CityCompany, Lahore (Rs 586.84 million); Faisalabad Garment City Company, Faisalabad (Rs 498.80 million); Providing and LayingDedicated 48-inch Diametre Mild Steel Water Pipeline for the Pakistan Textile City Karachi (Rs 636.60 million) and Extensionin Export Development Plan Implementation Unit (Rs 59.17 million).Source: Media Scanning

A monthly Magazine of ICCIBUSINESSMagnatePRESS STATEMENTSICCI lauds government move to provide loans to youthfor businessIslamabad Chamber of Commerce & Industry hasappreciated the statement of Finance Minister Ishaq Darfor providing loans ranging from Rs.100,000 to Rs.200,000to youth at 8% mark up for starting their own business as itwill engage youth in entrepreneurship and give boost toeconomic activities.Declining foreign exchange reserves pose seriouschallenges for economy-ICCIIslamabad Chamber of Commerce & Industry has warnedthat Pakistan's foreign exchange reserves have now fallen tobelow adequate levels and government should take urgentmeasures to arrest this dangerous trend as it will createserious problems for the economy. Zafar Bakhtawari,Presi...Businessmen show concern over continuous fall inrupee valueThe local businessmen in a meeting at Islamabad Chamberof Commerce &Industry shown great concerns over thecontinuous fall in value of Pak rupee against the US dollaras it poses serious threats to the economy. Chairing themeeting, Zafar Bakhtawari, President, Islamabad Chamberof Comm...ICCI lauds Prime Minister's move against power theftThe business community in a meeting at IslamabadChamber of Commerce & Industry appreciated the moveof Prime Minister Nawaz Sharif for ordering concernedauthorities to take stern action against those involved inelectricity and gas theft and termed it a much neededinitiative. They vowed to fully support all efforts o...Businessmen show concern over rising power short fallThe businessmen in a meeting at Islamabad Chamber ofCommerce & Industry have shown great concerns over therising power shortfall and called upon the government totake urgent measures to reduce the energy woes of trade,industry and the general public. Presiding over a meetingof ICCI Sub-Com...ICCI for privatization of PIA to improve itsperformanceGovernment has been pumping in billions of rupees to bailout Pakistan International Airlines and keep it afloat, but itsperformance is going down day by day. The best option forgovernment is to privatize PIA as early as possible toimprove its performance and save the national exchequerfrom further drain, said Zafar Bak...Government determined to provide businessmenproblems-Ishaq DarGovernment is determined to resolve businessmenproblems so that they could play more effective role in thedevelopment of country and with the stabilization ofeconomy, all required measures would be taken to providesufficient relief to business community. This was said byFederal Minister for Finance Mr. Ishaq Dar while ...For detail stories visit: www.icci.com.pkFBR to file an appeal against the court's verdictThe Federal Board of Revenue has decided to file an intracourtappeal with the Islamabad High Court (IHC) againstthe court's verdict that declared the amnesty scheme fornon-duty paid/smuggled vehicles illegal. FBR MemberCustoms Muhammad Riaz told the Senate StandingCommittee on Finance that the FBR was party to the case.The IHC had declared the FBR's amnesty scheme forsmuggled vehicles illegal. "We will go for an intra-courtappeal against the decision."Responding to a query, he said as many as 50,901 vehicleswerelegalized under the amnesty scheme, for which Rs 16billion was paid as tax. Break-up revealed that 46,169 morethan 10 years old vehicles were legalized, 3,570 vehicles 8-10years old, 1,042 vehicles 5-8 years old, 94 vehicles of 3-5years old and 26 vehicles up to 3 years old were legalizedunder the amnesty scheme. The data showed that most ofthe legalized vehicles are very old, i.e, over 10 years of age.Apart from duties and taxes, the owners of the vehicleswould also deposit token tax with the provincial excise andtaxation authorities. The FBR has obtained thecomputerized national identity card numbers of thepersons, who got legalized their vehicles under the amnestyscheme. This is not the first amnesty scheme for thelegalisation of the non-duty paid smuggled vehicles. Thefederal government has the authority to issue such scheme,the Member Customs maintained. On the direction of theSupreme Court, the FBR had launched a drive against theowners of non-duty paid smuggled vehicles particularly inBaluchistan. The joint teams of law enforcement agenciesand the customs have confiscated a number of vehicles.The FBR had estimated that around 100,000 illegal vehiclesare plying n the country.It was a very successful scheme as 50,901 vehicles wereregularised with payment of duties and taxes to tune of Rs16 billion. When asked about rationale behind giving 100percent duty exemption on the import of hybrid vehicles,FBR Member Customs said that to further encourage useof fuel efficient Hybrid Electric Vehicles (HEVs), theconcession in duty and taxes is being further reduced andrationalised according to engine capacity. The governmentwanted to promote comparatively smaller vehicles up to12,00cc as compared to higher engine capacity vehicles, headded.Source: Media Scanning17

A monthly Magazine of ICCIBUSINESSMagnateINTERNATIONAL NEWSChinese authorities have given the bankingindustry greater freedom by allowing banks toset their own lending ratesPreviously they werenot allowed to lend atrates below a certainlevel set by thePeople's Bank ofChina (PBOC).ThePeople's Bank said ithoped the movewould lead to lowercosts for companies.It is being seen as a significant part of the government'splan to make the economy more market-orientated."WhenChinese President Xi Jinping came to power in March, hepromised to reform the country's economy to encouragemore balanced growth," said BBC Beijing CorrespondentCelia Hatton. "The announcement on bank interest rates isthe first major change since that time," she added. Analystsagree that it marks an important development in policy."It'sa very big deal, probably more in terms of what itsymbolises than the effect on the economy," said MarkWilliams, chief Asia economist at CapitalEconomics."China has been talking about interest rateliberalisation for a long time, this is one of the biggest stepsthey could have taken," he said. Even before this move,Chinese banks had some freedom to lend at rates below theofficial level, but very few chose to do so.Citigroup reports surge in second quarterprofitCitigroup hascontinued a strongsecond quarter forthe biggest US banks.It reported a netincome of $4.2bn(£2.8bn) for thethree months to theend of June, that's up42% on the same period last year. That comparison isflattered by a big, one-off charge taken by Citigroup in thesecond quarter of 2012.The bank was also helped this yearby a large reduction in the money set aside for loans goingbad and an accounting benefit related to the bank's debt.Excluding the accounting benefit and last year's charge,Citigroup net income increased 26% to $3.9bn.Two of the world's biggest technologycompanies, Google and Microsoft, have badlymissed earnings expectations for the secondquarterGoogle reported profits of $9.7bn (£6.4bn), up 16% from ayear ago but less than analysts were expecting. Microsoftmade $4.5bn in thesecond quarter, butannounced that itwould take a $900mcharge relating topoor sales of itsSurface tablet.Shares in bothcompanies fell bymore than 4% inafter-hours trading. Declining PC sales - which recently sawtheir longest slide in five years - have hurt Microsoft'sefforts to boost its business with the sale of its Windows 8operating software. The company also announced that itwould cut the price of its Surface tablet amid sluggish sales.While Google's profits were up by more than 16% since lastyear, the company missed analyst expectations. The maindriver of Google's profits - advertising revenue - was up15%.More of Google's advertising revenues is coming frommobile adverts,which are cheaper.While the companyhas been adapting,the change has hurtGoogle's bottom line.Chief executiveLarry Page said thatadapting to mobilewas a challenge thecompany was embracing."The shift from one screen tomultiple screens and mobility creates tremendousopportunity for Google," he said. On a conference call todiscuss earnings, Mr Page mentioned the company'srevamped AdWordsprogramme, which has been wellreceived.Ratings agency Moody's has upgraded itsoutlook for the US credit rating, citing adeclining budget deficitThe agency lifted its outlook to stable from negative, as itaffirmed the country's AAA rating. It said the US economywas growing at a "faster rate compared with several AAA"peers and hasdemonstrated a"degree of resilience"to major reductionsin the growth ofgovernmentspending. It added itexpected the deficitto shrink further inthe next few years.According to the Congressional Budget Office, the budgetdeficit for the 2013 financial year is likely to decline to 4%of gross domestic product (GDP), down from 7% in2012.Moody's said the decline was greater than the fall ithad anticipated when it cut the outlook on US rating to18

A monthly Magazine of ICCIBUSINESSMagnatenegative from stable in 2011.The agency added that growthforecasts for the US economy for the next few years were"close to the long-term average for the decades before thefinancial crisis"."These forecasts of accelerating growth aresupported by a lower magnitude of fiscal tightening,continued strengthening of consumption and investment,and somewhat better international economic conditions,"the agency said in its statement. Last month, another ratingsagency - Standard and Poor's (S&P) - also raised its creditoutlook for the US economy from negative to stable.S&Phad also cited a resilient economy, monetary credibility, andthe US dollar's status as the world's key reserve currency asbeing the key strengths of the US economy. In August 2011,S&P downgraded its US rating one notch from AAA toAA+, but Moody's kept its rating for the US at AAA.Britain has many more technology firms thanthe government estimates, according to a newreportUnder itsclassification thegovernmentrecognises 187,600digital companies.Research by theNational Institute forEconomic and SocialResearch (NIESR)says there are almost 270,000 such companies in the UK,40% more than the government estimate. NIESR says thegovernment's classification is "outdated" and misses outmany tech firms. The report used data from GrowthIntelligence, a company which tracks the activity of firmson the internet and sells that information to clients. TomGatten, chief executive of Growth Intelligence, said: "Thisresearch demonstrates the need for a new way ofunderstanding the economy, both for Government and forbusinesses."Rather than relying on outdated codes or staticlists, our new technology and internet data reveals newopportunities and insights for growth."The report wascommissioned by Google and its chief economist, HalVarian, is one of the people behind GrowthIntelligence."This is a groundbreaking and important reportby NIESR not just because it shows that the spread of thedigital economy into other sectors is driving growth andjobs throughout the UK but because - for the first time in65 years - it presents us with a new way of measuring theeconomy," he said. The report says that official statistics useonly a basic definition of the digital economy.Oil prices down in Asian tradeOil prices eased in Asian trade but declines were temperedby data showing China's economy grew in line withexpectations for the April-June quarter. New York's maincontract, West Texas Intermediate (WTI) for delivery inAugust, fell nine cents to $105.86 a barrel in late-morningtrade, while Brent North Sea crude for August shed onecent to $108.80.Earlier losses were narrowed by the newsout of Beijing, which showed the gross domestic productexpanded 7.5 percent in the second quarter, slower than the7.7 percent in the previous three months, the NationalBureau of Statistics said in Beijing. The slowdown cameamid increasing worries over the health of the Asianeconomic giant, which is a crucial driver of global growth.But Kelly Teoh, market strategist at IG Markets Singapore,said the fact thefigure was in linewith forecasts wasproviding support tocrude prices."Themain thing is that itdidn't miss theestimates," she told.Source: Media ScanningSRO ReferenceSRO related Sales Tax657(I)/2013July 11,2013SRO related Sales Tax649(I)/2013July 09,2013SRO related Sales Tax648(I)/2013July 09,2013Latest FBR updates (July, 2013)DetailsSales Tax at the rate of 5% shall be charged and collected on import and local supply ofsecond hand and worn clothing falling under PCT heading NO. 6309.0000http://web2.fbr.gov.pk/SROsShows.aspx?ActionID=5827&%20Type=SROsFederal Excise and Sales Tax on production Capacity (Aerated Waters) Rules, 2013http://web2.fbr.gov.pk/SROsShows.aspx?ActionID=5826&%20Type=SROsFederal Govt is pleased to direct that further tax at rate of 1% shall not be charged, leviedor paid untaxable supplies mentioned in this S.R.Ohttp://web2.fbr.gov.pk/SROsShows.aspx?ActionID=5825&%20Type=SROsReduction in Sales Tax Sales Tax on old and used clothes has been reduced from 17% to 5%19

A monthly Magazine of ICCINATIONAL NEWSBUSINESSMagnateGovt cuts gas connections to 36 CNG stationsThe Oil and GasRegulatory Authority hadissued notices to 1700CNG stations but theauthorities disconnectedthe connections of 36stations without evenwaiting for the replies bythe stations' owners. Theauthorities were destroying their businesses, adding that theyshould be allowed to sell LPG or petrol at the outlets.TAPI gas project breakthrough likely nextmonthAccording to Indian media reports, in a development that islikely to give a big impetus to the strategic Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project, India,Pakistan, Afghanistan and Turkmenistan have agreed toform a company for execution of the project and give itshape by September this year. Following the meeting of theSteering Committee, aprotocol was signed inwhich the parties fixed thedecision on the need toprepare foundingdocuments and theregistration of the TAPILtd consortium as well assigning an agreement for atransaction adviser for the TAPI project. TAPI Ltd isrequired to have an initial contribution of $20 million that is$5 million from an identified entity from each of the fourparticipating countries.Qatar agrees to supply LNGExpressing a friendly gesture, Qatar has agreed to supply500mcfd Liquefied NaturalGas (LNG) to Pakistan toresolve energy issue. But atthe same time, it has outrightlydeclined toconstruct LNG terminal atKarachi. The sources privyto the development toldthat a special meeting heldhere in the premises of theministry under the chair Petroleum & Natural ResourcesMinister Shahid Khaqan Abbasi.Net foreign investment increases by 76 percentNet foreign direct investment into Pakistan rose 76pc in thefiscal Year 2012/13, reaching $1.447b compared to previousyear, according to data from the SBP. Between July andJune, there was an inflowof $2.653b and outflow of$1.205 billion, according tothe central bank. In thesame period the yearearlier, there was an inflowof $2.099 billion andoutflow of $1.278 billion.During June this year, netforeign direct investment rose to $128 million compared to$56 million a year earlier.Monetary policy optionsAs Pakistan is expected to get a new financing line from theIMF, a few challenges have emerged on the monetary front.The challenges relate to independent monetary policyformulation, and makingthe policy supportive ofeconomic growth whilebeing equally responsive toinflationary pressures.Sources privy to recenttalks between Pakistanipolicymakers and the IMFmission say that the Fundis not for or against a specific stance on monetary policy,and that no such thing is a pre-condition to the approval ofthe new $5.3 billion Extended Fund Facility.USAID to launch PPII for businessmenThe United States Agency for International Development(USAID) has finalised a plan to launch Pakistan PrivateInvestment Initiative (PPII) to help Pakistani investors tostart their business. PPII would start operations and beginidentifying investmentopportunists by fall 2013.The investment fundswould mobilize at least$150 million in new capitalfor Pakistan dynamicprivate enterprise sector.USAID partners with fundmanagers to establishPakistan focused private equity funds by extending upto $24million in seed capital to each fund. Fund managers are at aminimum required to match that investment.Pakistani mangoes rejection goes doubles byUK agency due to fruit fliesThe percentage of Pakistani mangoes rejected from the“FERA” (an executive agency of the UK Government'sDepartment for Environment, Food and Rural Affairs) aremore than double of last year, following an increase in thepresence of fruit flies. The mangoes were rejected becauseof the presence of Nephritides fruit flies, a “quarantinelisted harmful organism” and the damage they could cause21

A monthly Magazine of ICCIBUSINESSMagnateto European fruitproduction. This year tillend of June, 3.9pc of lotshad been rejected. Due tothe volume of fruit beingrejected may buyers havesimply stopped buyingfrom Pakistan, fearinglosses? This responsibilityalso goes on the exporters; one must check the product withproper procedure or lab test before lifting the product.Pakistani mangoes are prized for their superior quality andretailers have shown an increasing interest in them. But lastyear, 6.3pc of 4,252 lots were rejected by Fera, comparedwith 2.4pc of 3,940 lots in 2011.BOI Chairman for attracting financial inflowsChairman Board of Investment, Mohammad Zubair hassaid that presently the country desperately needs to attractfinancial inflows to build up the foreign exchange reserves.he emphasized the officersof BoI to work as teamand urged them forproviding speedyfacilitation to foreign aswell as local investors andpromote Foreign DirectInvestment to achieve theobjective of economicdevelopment.To achieveFDI target of US$ 5.5 billion per annum assuming anaverage annual GDP growth of 5 percent, the FDI stockwould account for 20% of GDP, which is close to thecurrent global averageUS offer Pakistan help in biogas, wind energysectorThe United States on Tuesday offered Pakistan assistance ingenerating electricity through biogas and wind to overcomethe power crisis. Pakistan needs investment, particularly inthe most-needed energysector, Finance MinisterSenator Mohammad IshaqDar said while addressing ajoint press conferencealong with PresidentOverseas PrivateInvestment Corporation(OPIC), Ms Elizabeth L.Littlefield, who was heading the US delegation in talks withPakistan, said a PID press release.Flour mills demand immediate wheat importsThe government's inability to meet its wheat procurementtarget, wheat shortages and increasing prices have led tourgent calls by the Pakistan Flour Mills Association (PFMA)for the government to allow wheat imports on a prioritybasis.The PFMA chairman on Tuesday,July 16, 2013 said themove is necessary to avert likely wheat and flour crisis in thecountry.The landed cost of wheat from India will be22cheaper by Rs400-500 per100 kg than the localwheat. The landed cost ofIndian wheat is aroundRs2, 900 per 100 kilogramcompared to Rs3, 500 per100 kilogram of Pakistaniwheat. He said “Theimport will smoothen outthe supply of wheat in the country, while the step will alsobring the price of flour lower. This will ultimately helpconsumers to take benefit of wheat import,”Work on Neelum-Jhelum be expeditedThe Chinese contractor building mega Neelum-Jhelumhydropower plant has decided to deploy more engineers,technical staff to expeditework on 969MW project.Vice president of theChina Gezhouba Group ofCompanies (CGGC) Dengheld talks in Beijing withPakistani side and briefedabout deployment ofadditional Chinesetechnical staff.Theinduction of additional workforce will help complete theproject before given timetable,Importers face problems in cargo clearanceThe importers of heavy machinery and chemical are facingproblems in clearing their consignments as no collectorcustoms of adjudication – I, Karachi, has been assigned bythe Federal Board ofRevenue (FBR) since thelast 16 days. Importershave requested the FBRchairman to appointofficers for early clearanceof their consignments. OnJuly 9, the FBR hadnotified a major reshufflein Inland Revenue Servicesand Pakistan Customs and posted / transferred grade 20and grade 21 officers. However, no assignment was given anofficer for the position of collector adjudication – I.Enforcing discipline in car marketThe federal government isactively evaluating policyoptions to discipline a fewautomakers stated to bemanipulating the carmarket. They are accusedof using their dominantmarket position to floutnorms of fair tradingpractices.Source: Media Scanning

A monthly Magazine of ICCIBUSINESSMagnateExhibitions/Trade FairsKaz Build, 2013September 3-6, 2013Almaty, Kazakhstanwww.kazbuild.kzAgro Bangladesh 2013September 19- 21 2013Dhaka – Bangladeshwww.agrobangladesh.comth8 Expo PakistanSeptember 26-29, 2013Karachi, Pakistanexpopakistan.gov.pkPakistan International Gems & JeweleryExhibition-2013September 26-29, 2013Karachi, Pakistanwww.pgjdc.orgInfra OmanSeptember 30-October 2, 2013Oman, Muscatwww.alnimrexpo.com.IFSEC Istanbul 2013 Security and Fire Exhibition-2013Istanbul, TurkeySeptember 30– October 02, 2013www.ifsec-istanbul.comPower Generation International, 2013November 12-14, 2013Florida, U.S .Awww.power-gen.comSeminar & ConferencesFinance & Accounting for Non-FinancialExecutivesSeptember 2-4, 2013Islamabad, Pakistanwww.pim.com.pkth4 OIC Biz, 2013September 5- 8, 2013Kuala Lumpur, Malaysiawww.oicinternational.bizIAH International Congress16 - 20 September, 2013Perth, Australiaiahcongress2013.orgSustainable Cosmetics SummitSeptember 18-20, 2013Sao Paulo, Brazilwww.sustainablecosmeticssummit.comRenewable Energy and Mining SummitSeptember 25 - 26 , 2013Toronto, Canadawww.renewablesandmining.comWorld Congress for Conductive EducationOctober 09 - 12, 2013Munich, Germanywww.ce-worldcongress2013.orgInternational Oil & Gas ConferenceNovember 19-21, 2013Ashgabat, Turkmenistanwww.oilgasturkmenistan.comUN food agency says 38 countries have met internationaltarget on hunger eradicationThirty-eight countries have already met internationally-set hunger eradication targets set for 2015 to halve the percentage ofhungry people, (the United Nations food agency). Amid the 1,000 days of action for the eight anti-poverty targets known as theMillennium Development Goals (MDGs), 38 countries have met part of the first MDG which calls on Member States to halveby 2015 the proportion of people who suffer from hunger. Of those, 18 countries also reached the more stringent World FoodSummit Goal of reducing by half the absolute number of undernourished people between 1990-1992 and 2010-2012. Thesecomprise Armenia, Azerbaijan, Cuba, Djibouti, Georgia, Ghana, Guyana, Kuwait, Kyrgyzstan, Nicaragua, Peru, Saint Vincentand the Grenadines, Samoa, Sao Tome and Principe, Thailand, Turkmenistan, Venezuela and Vietnam. The countries that metthe anti-hunger aspect of the first MDG include Algeria; Angola; Bangladesh; Benin; Brazil; Cambodia; Cameroon; Chile;Dominican Republic; Fiji; Honduras; Indonesia; Jordan; Malawi; Maldives; Niger; Nigeria; Panama; Togo; Uruguay. Firstproposed at the UN Conference on Sustainable Development (Rio+20) in Brazil last June, the challenge aims for a futurewhere every individual has adequate nutrition. Urged all countries to keep up the momentum, aiming for the completeeradication of hunger. Its five objectives are to make sure that everyone in the world has access to enough nutritious food allyear long; to end childhood stunting; to build sustainable food systems; to double the productivity and income of smallholderfarmers, especially women; and to prevent food from being lost or wasted.Source: www.un.org23

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