TTP asked cell company to install tower in one month

By Jawwad Rizvi

LAHORE: Tehreek-e-Taliban Pakistan (TTP) has asked one of the largest customer base cellular operator for commissioning company's BTS tower installed at Shaou Khail an area of Kurram Agency.The banned outfit written letter in Pashto and available with The News has threatened in a humble way for commissioning the tower within one month. The TTP in its letter gives assurance of the protection of the largest customer based cellular operators property if the company commissioned/on-air the BTS tower within one month after receiving this letter.The TTP's letter mentioned that if the company would not commission the BTS tower in the given time limit then the TTP would dismantle the BTS tower and all dismantled material would be deposited to Bait-ul-Maal.The News has translated the letter which reads: "First of all Salam and it is humbly requested that your Mobilink tower situated at SHAOU KHAIL is not yet commissioned (on-air), we assure you that the TTP will not harm any property or personal if it is commissioned with in one month, if it is not then tower will be dismantled and all dismantled material will be deposited to Bait-ul-Maal, Inshah Allh Tahla".The News has contacted the BTS tower site owner Malik Shareef Khan and asked him about the letter, he told some TTP representatives had delivered the letter at his residence. He said a representative of the TTP had reached to the area and asked about his house. "Abdul Wahab Khan owner of a medical store has informed him about my residence where the TTP representative delivered the letter to me from his commander Mula Muhammad Umar and TTP chief Baitullah Masood", Shareef disclosed."After receiving letter I have talked to a company official who asked me to sent the letter to him", he mentioned adding that after that whenever I called Mukthar said what company can do in this matter. However, the official assured me the company was trying to resolve the matter, Shareef told.He further informed that the company had installed BTS tower some six months ago but it was not operational till now and many times the locals had asked him when the company would commission the BTS tower. "People asked me when company give current to the tower", Shareef said.When The News contacted, spokesperson of the company said "in view of the prevailing adverse security environment, there are risks involved in sending technical teams for installation/repair of BTSs to certain areas. This subject has been already been taken up by the Ministry of Interior, Ministry of IT and PTA. That said, we evaluate such requests on a case-to-case basis and have forwarded the letter to our government relations team so that they can work with the authorities concerned", spokesperson added.

The News has published this news item on Feb 21 2009 in Lahore edition on Page 2

Pak-India trade through Wagah rises to $31m from $20m

Wednesday, February 18, 2009

By Jawwad Rizvi

LAHORE: Trade with India through Wagha border substantially increased in the first seven months (July 2008 to January 2009) of the current fiscal year as Pakistan imported around $31 million worth of goods compared to last year’s $20 million.According to official figures available with The News, a quantum jump has been recorded in import of different items from India through Wagha border this fiscal year. During the whole last fiscal, Pakistan imported goods worth $48.51 million through the route.Pakistan is importing tomato, potato, onion, meat, garlic, cotton, maize and animals from Wagha land route but exports nothing to India through land due to non-tariff barriers imposed by Delhi.The data depicted Pakistan had imported about $6 million worth of tomato with quantity of 31,354 tonnes. Besides that, 322 tonnes of meat, 88,485 tonnes of potato, 6,997 tonnes of cotton and 1,745 tonnes of maize had been imported.Compared to those, during the last fiscal year tomato import totaled 110,038 tonnes, onion 12,651 tonnes, meat 4,570 tonnes, potato 1,243 tonnes, cotton 1,921 tonnes, maize 7,100 tonnes and 3,791 animals.No import of onion took place in December and January while last year traders had imported 12,651 tonnes of onion on in these two months due to scarcity and lower price offered by Indian traders. However, this year no major shortage of onion has occurred but it is expected that traders would import the commodity in the coming days following its shortage in the local market.Imran, an importer of vegetables from India, said trade in vegetables with Delhi was only seasonal. “Pakistani traders import some seasonal vegetables through India when these are scarce as they get good price during scarcity while in crop season import of vegetables through India is not a viable business,” he said.Currently, only tomato was a major item being imported from India. Import of potato had sharply come down and almost ended in February after the government imposed import duty in order to protect local farmers, he said.Meanwhile, porters and customs officials deputed at Wagha border said tensions with India after Mumbai attacks in Nov last year had no major impact on Wagha trade. “The Indians are wise enough and know that they are gaining from this route. That is why they have not imposed any restrictions on their exporters,” one commented.

20pc increase in power tariff likely from June

Wednesday, February 18, 2009

By Jawwad Rizvi

LAHORE: The Pakistan Electric Power Company (Pepco) has sought 20 per cent increase in power tariff, which is expected to be implemented from June 2009. Pepco had already increased the power tariff for the domestic consumers by 54 to 108 per cent during the last two years and increased its revenue generation up to Rs 300 billion with this increase. The News has learnt that Pepco has requested the government to further increase the power tariff to pay off the circular debts of the company, which had emerged after four years of stagnant power tariff (2003-07) during the previous regime. Official notifications of Pepco showed that the power tariff for 100 units and below consumers had increased by 54 per cent, up to 300 units 70.27 per cent, up to 400 units 68.91 per cent, up to 500 units 68.46 per cent and up to 1,000 units and above 108.06 per cent. The bill of 100-unit consumers inclusive of all taxes in February 2007 was Rs 269.61 which has now been increased to Rs 415. The bill of 300 units was Rs 966, which has reached Rs 1,599, for 400 units the bill has increased to Rs 2,547 from Rs 1,508, 500 units bill to Rs 3,495 from Rs 2,076, 700 units bill to Rs 5,392 from Rs 3,211 and 1,000 units bill to Rs 8,267 from Rs 3,971. The per unit price for 100-unit consumers in 2007 was Rs 2.69 that has reached Rs 4.15, for 300-unit consumers it was increased from Rs 3.13 to Rs 5.32, for 400 units from Rs 3.77 to Rs 6.36, for 500 units from Rs 4.15 to Rs 6.99, for 700 units from Rs 4.58 to Rs 7.70 per unit and for 1,000 units from Rs 3.97 to Rs 8.26 per unit. Sources in the Finance Ministry said in June the unit price would be again raised for every slab with 20 per cent increase in tariff. They said the government had already committed to the International Monetary Fund to waive all subsidies from electricity and petroleum products. Therefore, the government will announce the new electricity tariff in June. According to the consumption-based billing formula used in the world, the unit price decreases with an increase in consumption, while in Pakistan it is exactly the opposite as the unit price increases with the increase in consumption.

Lesco fails to recover Rs1.8bn of December bill

Monday, February 16, 2009

By Jawwad Rizvi

LAHORE: Lahore Electricity Supply Company (Lesco) failed to meet the target of recovering Rs 8.4878 billion in December and collected Rs 6.6860 billion from its billing amount. The Lesco had not recovered Rs 1.8018 billion from different government and private institutions during the month of December which is 20 per cent below the actual billing amount. The recovery position from the government institutions remained poor in the month. According to the official figures available to The News, the Lesco had failed to recover even 50 per cent billing amount from the public institutions. The company has issued Rs 641.1 million bills to the public sector customers and it had recovered only Rs 301 million only.The company has recovered Rs 183.5 million from billing amount of Rs 240 million in Gulshan Ravi Division, Rs 386.8 million from Rs 452.4 million in Ferozewala Division, Rs 199.8 million from Rs 251 million in Ravi Road Division, Rs 179.7 million from Rs 226.3 million in Data Darbar Division, Rs 195.7 million from Rs 246.1 million in Badami Bagh Division, Rs 374.3 million from Rs 488.4 million in Township Division, Rs 179.9 million from Rs 224.4 million in Raiwind Division, Rs 323.5 million from Rs 414.3 million in Allama Iqbal Town Division, Rs 169 million from Rs 224.9 million in Samanabad Division, Rs 228.3 million from Rs 325.7 million in Civil Lines Division, Rs 240.4 million from Rs 302.6 million in Shalimar Division, Rs 224.3 million from Rs 281 million in McLeod Road Division, Rs 316.2 million from Rs 376.3 million in Baghbanpura Division, Rs 183.4 million from Rs 236.9 million in Mughalpura Division, Rs 485.1 million from Rs 578.2 million in Gulberg Division, Rs 332.7 million from Rs 420.3 million in Defence Road Division and Rs 194.2 million from Rs 243.7 million in Ferozepur Road Division. A senior official of the Pakistan Electric Power Company (PEPCO) disclosed that the company has issued instructions to all the distribution companies to gear-up their recovery campaign and ensure their all outstanding dues against their customers should be cleared before June 2009. He said the Advisor to Prime Minister for Finance Shaukat Tareen has instructed the PEPCO officials in a recent meeting to clear Rs 39 billion outstanding before June 2009 so that the PEPCO has asked the DISCOs to gear up the recovery campaign and not make instalments in current billing and also recovered the previous amount without any discrimination. He further said the recovery position of December is relatively improved from the past months of all the DISCOs and hoped that the DISCOS would further improve it after the instructions of the PEPCO.

UK foresees better economic outlook for Pakistan

British deputy high commissioner says UK government is encouraging its companies to invest in Pakistan

Sunday, February 15, 2009

By Jawwad Rizvi

LAHORE: British Deputy High Commissioner and Director UK Trade and Investment in Pakistan Robert W Gibson has said the UK government is foreseeing better economic and investment outlook in Pakistan and encouraging its companies to make investments here.Pakistan has great investment potential and the British government is not issuing strict travel advisory for Pakistan to its nationals as compared to other western countries.“British investors can travel to Pakistan comfortably except a few troubled areas,” Gibson said adding, keeping the importance of Pakistan’s economic and investment outlook in mind the UK government is likely to announce an investment package for Pakistan.In an interview with The News after a reception hosted by Moody International to the elite of the business community of Pakistan on fostering trade and investment and to acknowledge contribution of British companies in Pakistan, Gibson pointed out that British entrepreneurs working in Pakistan were having continued interest to work and safeguard their businesses and were looking forward to opportunities to further increase their operations by expanding existing projects and explore new avenues for investment.Responding to a question of future credit rating of Pakistan Gibson said, “It is not my duty to tell about the credit rating of the country but existing economic scenario is showing a positive outlook of Pakistan,” he said adding that so British government recommending the Britain companies for making investments in Pakistan. Gibson said “Pakistan has excellent regulatory regime for investors and I’m identifying these opportunities for British companies.” He further said that the Britain is determined to retain liberal trade markets. He added that a good number of UK companies are keen to invest in Pakistan in different sectors. Responding to a question on market access for Pakistan in the West, the Director of UK Trade and Investment said the Britain would certainly want to have such an arrangement with Islamabad. However, being part of the European Union (EU), Britain is bound to the decisions of Brussels on any such facility, he added in the same breath.British envoy proudly disclosed that 100 British companies with an investment portfolio of 1.7 billion dollars are operational in Pakistan over the last four years. According to him, Pakistan, with a population of 170 million, is a market with huge potential and the UK is keen to invest further here.Similarly, the Britain will provide some 480 million pounds for social uplift with a focus on poverty alleviation in Pakistan during the next three years, Gibson said adding that there is no problem for making investments in Pakistan. “There are only some areas of Pakistan where law and order is a problem while in the rest of the country there is no issue,” he said. The British government has been motivating their business people to make investments in Pakistan, said Robert W Gibson. Talking about the economic recession, he said a global solution is needed to overcome global recession.

Telecom sector starts cutting jobs

Mobile operators deny retrenchment

Sunday, February 15, 2009

By Jawwad Rizvi

LAHORE: Pakistan’s telecom sector, which flourished during the last five years and created numerous highly paid jobs, is now feeling the heat of economic crisis and has started laying off employees.This is not surprising as international telecom industry is already cutting jobs to cut their operational costs as worldwide recession strikes many countries. Both mobile phone manufacturers and cellular service providers are slashing their staff in the wake of declining profits.The International Labour Organisation in its 2009 report has expressed concern that under the present label of global recession 20 million jobs would be wiped off by the end of this year. However, if the recession further deepened, in the worst case scenario, the reduction in jobs could touch 50 million, an eye opener for Pakistan as well.The same thing has started happening in Pakistan also. Though there is no mobile phone manufacturing company, sales offices of almost every manufacturer are operating here. Cellular service providers are also facing numerous difficulties to maintain their cost in a scenario when new investments are not forthcoming and Average Revenue Per User (ARPU) has been declining every passing day.The News has found that different cellular service providers had recently laid off their employees. Industry sources revealed Mobilink, having the largest customer base, cut jobs from the administration and security department. The company removed its permanent employees in a bid to cut operational costs.Similarly, UAE-based company Warid has terminated the services of over 250 employees from its sales and marketing departments while China-based company Zong has laid off some 30 people from its sales department. The company had shown the door to sales team officials of Lahore, Faisalabad, Multan and Bahawalpur.However, representatives of all cellular operators denied there was any job cuts in their companies and said they had no plan to lay off staff in the near future.Telecom sector people said no new investments had been pouring in the industry due to economic crisis. Besides that, a price war among the operators has started which has reduced profit margins. Similarly, ARPU has dropped to $2.7 from $9 in 2004 because of economic downturn which is also a big blow to the sector.Director Sales Zong Berkat Ullah talking about job cuts in the company said there was no lay-offs in the south region of the company. However, “I don’t know about job cuts in sales department of the central region,” he added.On the issue of price war, he said for a consumer price war was beneficial. “The company has entered into a cut-throat competition and creating troubles for others.”Director People Excellence Telenor Pakistan Haroon Bhatti, responding to The News queries, said the company had not planned any job cuts. “We have planned our workforce carefully and are a lean organisation. Hiring people on short-term goals and then laying them off is a painful process. Telenor do everything in its capacity to avoid a situation of cutting jobs,” he added. He further said the company had not shed any of its staff and not planned to do so in the future. Haroon Bhatti said the global economic slowdown was having an impact on business world-wide. However, through prudent hiring and by keeping long-term business in view, “we don’t have to lay off people.”Ufone spokesman Moazzam Ali Khan said the company had always been a very efficiently managed organisation and therefore had never built any fat in any area. “We therefore do not plan or foresee any job cuts and has not shed any staff so far.“Pakistan’s telecom industry has been impacted by the international economic crunch because of its reliance on international technology and vendors,” he said, adding “we are, however, getting more affected by local inflationary pressures and taxation changes.” He said, “for the first time in the last 19 years this industry has seen a contraction in the size of subscribers and pressure on revenues and costs is becoming a worry for all the players.”Similarly, Mobilink spokesperson rejected the notion of job cuts during the last six months. “The global economic crunch and overall inflationary trends have affected the entire economy and the telecom sector is no exception. However at Mobilink, our employees are our greatest asset. Our strong value and support system when it comes to looking after our employees is what has earned us the Most Preferred Telecom Employer 2008,” she said.However, Warid spokesperson opined that the situation had worsened the world over due to the economic crisis but the same was not reflected in Pakistan’s economy because the country’s market dynamics were different from developed nations. “In future no job cuts will take place in Warid, however cut in the revenue of telecom industry is reflected in the planned or current downsizing of surplus employees in some companies,” she added.

China Mobile pleads for LDI licence

Saturday, February 14, 2009

By Jawwad Rizvi

LAHORE: The Zong management urged Federal Minister for Investment Senator Waqar Ahmed Khan to resolve the long-delayed matter by PTA for issuance of LDI licence to China Mobile Pakistan. It pointed out that despite getting approval from the prime minister and the cabinet and clear directives of the Ministry of Information & Technology, the PTA has refused to issue LDI licence to China Mobile. This refusal could limit investment in this sector of the industry. The federal minister for investment has visited ZONG’s Head Office with Ambassador of China Luo Zhaohui as part of the efforts by China to apprise the government of the level of Chinese investment in the country. The sources revealed that on the occasion, the ambassador urged the government to intervene in this regard in order to provide level playing field to all the stakeholders in the cellular industry keeping in view the long-term friendship and close ties between both the countries. He pointed out that President Asif Ali Zardari is due to visit China during the last week of February during which he is expected to meet Chinese investors especially from the power and telecommunications sector and explore new areas of cooperation. President Zardari had earlier visited China during October 2008 during which a number of Chinese investors had pledged investments in Pakistan. He said the ZONG is China Mobile’s first venture outside of China and has attracted attention not only in the global cellular arena, but also international finance experts and investment houses. The sources said during visit the minister appreciated the plans of the company to invest another $500 million in the country’s economy during 2009 in the areas of building new network capacity of more than 20 million customer base and other infrastructure. Similarly, Chief Operating Officer (COO) of Zong Zafar Usmani in his briefing informed the minister that the company had so far invested $1.66 billion in Pakistan and has generated more than 1,700 direct and over 40,000 indirect jobs in the country.

Banking expo for SMEs fails to attract visitors

Thursday, February 12, 2009

By Jawwad Rizvi

LAHORE: The Bank Fair for SMEs-2009 organised by the SBP BSC Lahore in collaboration with the 21 commercial banks for the SME sector was a flop show as no actual SME sector people visited the fair.The organisers brought the students of the technical education institutions and other colleges to show the attendance of the audience in the seminar arranged parallel to the stalls of the banks.The seminar was organised to create awareness among the SME sector people to get the credit facilities from the commercial banks. But instead of the people related with SME sector the students of technical institutions and colleges were sitting in the seminar hall. On the other hand at the commercial banks stall side only media persons and officials of commercial banks were seen performing their duties. Interestingly the SBP stall was occupied by the government technical institution Moghalpura. The people of the institution were sitting there. They hanged their banner there and put the items of their students on display. No SBP official was present found at the designated stall. The News during the visit of the fair area and stalls of commercial banks has found that the bankers were not satisfied with the arrangements and promotional campaign of Bank Fair-2009 for SME sector promotion. Number of bankers on the condition of not mentioning their names said that the publicity and promotion campaign of the Fair was not made despite the greatest importance of the SME sector.They said the SBP had limited the expenses of publicity and promotional campaign to Rs30,000 to each bank which was very meagre for a commercial bank. They said the commercial banks can afford Rs3 to Rs4 lakh for promotional and publicity campaigns of such events. Even at the entrance of Aiwan-e-Iqbal where the event was held no flex banner was displayed. Similarly, no roadside banners were seen around the roads of Aiwan-e-Iqbal as in the past whenever any fair or conference were held at Aiwan-e-Iqbal the conference managers hang banners and posters.Meanwhile, at the inaugurating session, the Small and Medium Enterprises Authority (SMEDA) CEO Shahid Rashid said the mounting task of SME development cannot be accomplished without sincere cooperation of the banking industry in the country. Shahid Rashid said the SMEDA had been striving hard to create a conducive environment for SMEs in the country. The major success in this regard has been achieved by evolving the first ever SME policy, which is now on implementation stage, he said adding that the visible change in SME development requires a sincere cooperation from the financial institutions. He acknowledged that the state bank was taking bold initiatives for making availability of financial resources to the SMEs through formal resources. He expressed extreme pleasure over assembling around 27 major banks of the country under one roof to introduce their financial products specially designed for SMEs. He emphasized to strengthen and stabilize this move in the banking industry for the real growth of SMEs in the country.Chief Manager of SBP Banking Services Corporation (BSC) Lahore Barbruce Ishaq in his address terming the first Bank Fair a great success expressed thanks to SMEDA, LCCI, Punjab Small Industries Corporation (PSIC) and to all participating banks for arranging the event. He hoped the Fair would prove to be helpful for the existing SMEs as well as the prospective SMEs with regard to availability of finance through DFIs.

SECP launches online company registration

Wednesday, February 11, 2009

By Jawwad Rizvi

LAHORE: The Securities and Exchange Commission of Pakistan (SECP) has introduced online company registration in order to promote a hassle-free and paperless system.The News has learnt that the SECP has issued an SRO 119 (I)/2009 dated February 6 for company’s registration fee for submission of documents both online and physically. In order to promote a paperless system, the SECP has fixed about half of the registration fee for online process in every category.The SECP notified registration fee of Rs2,500 for online submission of documents for a company with nominal share capital up to Rs100,000. In case the nominal share capital crosses Rs100,000, Rs100 to Rs500 would be added to the fee.For registration of an increase in share capital which came after the first registration of the company, the amount to be paid would be equal to the difference between the amount which would have been payable on registration of the company by reference to the increase in capital and the amount which would have been payable by reference to its capital immediately before the increase, calculated at rates given under clause 2.For registration of any existing company, except for such companies exempted from payment of fee in respect of registration under the ordinance, the fee will be the same as for registering a new company.For filing, registering or recording any document required under the ordinance other than particulars of mortgage/charge or other interest created by a company, or the memorandum or the abstract required to be filed with the registrar by a receiver or the statement or other document required to be filed with the registrar by the liquidator in a wind-up, a fee of Rs500 will be charged for online process and Rs1,000 for physical process.For filing, registering or recording a document related to mortgage or charge required under the ordinance, a fee of Rs5,000 will be charged for online process and Rs7,500 for physical process.An official of the SECP revealed the Commission had introduced the online registration process in an era when everyone was moving in a paperless system. “In corporate culture, the online system is more convenient for the people rather than adopting an orthodox system,” he added.

US counsellor for strengthening oilseed trade

Tuesday, February 10, 2009

By Jawwad Rizvi

LAHORE: Newly appointed US Agricultural Counsellor in Pakistan Joseph M Carroll visited different agriculture departments of Punjab and the federal government in order to deliberate on relevant issues with stakeholders.In this regard, he also held a meeting with the Pakistan Oilseed Development Board (PODB) at the provincial directorate with stakeholders of the oilseed sector also present for strengthening the oilseed trade with the technical/financial collaboration of US Department of Agriculture (USDA).He briefed the participants of the meeting about USDA’s ongoing activities and future plans in Pakistan. He showed interest in enhancement of local oilseed production through technical support and development of strong linkages helpful in promotion of bilateral trade in the sector.PODB Provincial Director Syed Nasir Ali Shah threw light on the activities of the Board for the promotion of oilseed crops and oil-bearing trees, sources in the PODB Punjab Directorate said.He pointed out that wild olive (Kahu) was available in abundance (3.5 million plants approximately) in Potohar and Khushab areas of the Punjab province. It provides a vast scope for the conversion of this natural plantation to oil-bearing species and establishment of olive orchards on marginal lands through saplings to supplement the oilseed production, he added.On the occasion, the representatives of solvent industries discussed production and procurement of indigenous oilseed crops like sunflower, canola and soybean, their crushing, marketing and use of by-products.The meeting discussed the available paraphernalia of the crushing industry helpful in handling the import of huge quantities of oilseeds in Pakistan. Discussing the current situation of oilseed cultivation, the Provincial Director PODB said that low priority to oilseed crops and announcement of attractive wheat price by the government was likely to have a negative impact on the cultivation of canola and sunflower, being the non-traditional crops.He suggested an early announcement of sunflower support price and its procurement through Pakistan Agriculture Storage and Supplies Corporation as an immediate remedy to restore the confidence of growers.The meeting also discussed the prospects of cultivation of soybean in Pakistan and US support in this regard. It was proposed that American Soybean Association (ASA) should be asked to conduct a technical study for soybean cultivation in different ecological zones of Pakistan in collaboration with PODB.Summing up the discussion, PODB officials requested the participants to initiate proposals, identifying the fields of common interest, where the US technical/ financial assistance is desired to enhance the local oilseed crop production for achieving self-sufficiency in edible oils, the sources concluded.

Nutrient management reduces fertiliser use

Saturday, February 07, 2009

By Jawwad Rizvi

LAHORE: Importance of managing fertiliser input techniques have increased in a scenario when international commodity prices are dropping and prices of nutrients are rising. The field crop costs are rising daily. Field crops require adequate nutrients for producing good yields and desirable quality.The agriculturalists using latest farming technique to increase per acre yield said the crops grown with adequate nutrient levels will also mature sooner. Farmers using the artificial methods to control weather and producing early crops said it was possible to optimise fertiliser inputs by adopting different modern techniques.Naseem Haider a modern framer says soil testing was the basis for good fertilizer management. Using fertilizer to meet crop needs is more profitable than feeding the soil, he remarked.Soil testing allows crop producers to compare field fertility levels against the probability that adding any one nutrient will increase crop yields in that field. However, there is need of extensive soil survey by the government as the farmers are unaware of such modern techniques. On the basis of results obtained from the soil survey the government suggest the farmers which nutrients are currently need and which should not be use to increase productivity, Naseem mentioned.Naseem observed that managing nutrient timing and placement could also optimise fertilizer use. Placing phosphorus with or very near the seed of annual crops is best because plants absorb and use most of this nutrient at their initial growth stages. He said yields were best when phosphorus was absorbed into plant tissues early. Phosphorus fertiliser is not available to plants when applied too late or too far from roots.Testing irrigation water is another way to optimise fertilizer efficiencies, said Mian Hanif a seasoned agriculturists. Mostly nutrients exist in irrigation water to meet the crop needs even, he said.Laboratory tests have shown that irrigation water particularly ground water often has adequate amount of sulphur and boron. Similarly, irrigation water may also meet part of nitrogen requirements of the crop. In such cases there was no need to use such nutrients, he said adding excess use of such nutrients was bad from crops. Setting a realistic crop yield goal is important for managing nitrogen fertilizer inputs. The best fertilizer input for increasing irrigated corn profits are usually from nitrogen because this nutrient is nearly always deficient in soils. Nitrogen fertilizer recommendations are based on crop yield goals, soil and water test levels, previous crops and manure applications. Shahid Mobeen an agriculturalist from sindh said nitrogen is absorbed and used during plant growth so the nitrogen fertilizer should be made available when plant growth rates begin to peak. He further said managing irrigation was also critical for fertilizer optimisation. Nitrogen leaching is a problem on sandy soils, especially if it is applied in high amounts before crops begin their rapid growth phase. Irrigation in the spring also cools soils reducing plant root growth and nutrient absorption.Shahid suggested frequent spring irrigation to reduce phosphorus uptake by plants through soil cooling. Reducing fertilizer losses and cool soil absorption problems through good irrigation practices and optimum nutrient placement and timing could reduce the cost of production of farmers.

Sugar rate hike halts

Friday, February 06, 2009

By Jawwad Rizvi

LAHORE: The government’s decision, though late, of importing 200,000 tonnes of refined sugar has for the time being stopped price rise in the wholesale market.However, there are still rumours in the market that the price of sugar will rise above Rs52 per kg as manipulators are trying to take the rate to historic highs, market sources revealed to The News.Manipulators had started pushing up the sweetener’s prices soon after the crushing season kicked off this year. The price of sugar was in the range of Rs2,800 to Rs3,000 per 100 kg at the start of the season.However, the sugar millers taking plea of higher production cost increased the price with the start of production. The millers calculated their production cost at Rs39.37 per kg on minimum sugarcane price of Rs80 per 40 kg.The millers have informed the government that the retail price of sugar for the next season will be in the range of Rs42 to Rs43 per kg, a quantum increase of Rs10 from the current price of Rs32 to Rs33 per kg.A very strong lobby controls the commodity’s trade in the country. Enjoying access to the power corridors, the lobby uses its contacts to influence government’s decisions about import or export of any commodity.In the previous regime, this mafia had successfully pushed the price of sugar to a historic high of Rs42 per kg. “Now it has again managed to get a decision to safeguard their vested interests,” a senior official of the finance ministry revealed. He said the millers were claiming that they had been purchasing sugarcane at Rs125 per 40 kg so they were unable to sell sugar at a lower price.He said a month’s delay in the decision to import sugar would cost $100 million to the national exchequer. He was of the view that government’s timely decision of importing raw sugar could have minimised the loss.On the other hand, the farmers are raising voice regarding sugarcane price. They said they were not getting high sugarcane price as claimed by the sugar milers.Akthar Farooq, Secretary Information Kisan Board Pakistan, said the farmers had not been paid more than Rs80 per 40 kg for sugarcane anywhere in Punjab. “How the millers are claiming Rs125 per 40 kg sugarcane purchase price,” he questioned and said the government could check the millers’ claim by checking Cash Purchase Receipt (CPR) issued by the millers to the farmers.Market sources said currently there was no shortage of sugar in the country then how the price had been going up which negates business dynamics. The price of any commodity increases when the demand is more than the supply.However, in the wake of sugarcane crushing season when the smooth sugar supply is continued showed the failure or involvement of the government in sugar price issue, they added. They said the government should take notice of artificial hike in sugar prices otherwise the manipulators could brought sugar price over Rs50 per kg.

Chapter 11 to be introduced in 2 months

Thursday, February 05, 2009

By Jawwad Rizvi

LAHORE: Governor State Bank of Pakistan Syed Salim Raza Wednesday said that Chapter 11 in the banking law would be introduced in the next two months. This will allow borrowers to declare bankruptcy if they are unable to repay loans to the banks and lose their business. The working on this law was started some three years ago and now the central bank has almost reached the point where it could be introduced. Syed Salim Raza expressed these views during a meeting with the leading industrialists, MPA Punjab and think tanks at the Punjab Governor House. The meeting was organised by the Governor Punjab Salman Taseer.World over Chapter 11 bankruptcies are available to any business, whether organised as a corporation or sole proprietorship, and to individuals, although it is mostly used by corporate entities.The SBP chief hinted a decline in mark-up rates as banks were easing out from liquidity issues and their deposits had started piling-up again. However, he did not announce any timeframe to cut the mark-up rate despite.During the meeting hot debate was witnessed between Advisor to Finance Minister of Musharraf’s regime Dr Salman Shah and Salim Raza and director monetary policy department of SBP Dr Hamza Ali Malik as SBP chief had asked the director to reply Dr Shah quires. Dr Shah asked the SBP chief to ponder upon the monthly figures of inflation and bailout the industry on short-term basis as being adopted world over to minimize the impact of credit crunch. Raza said that the central bank was not focusing on short term polices. Dr Shah said that there is disinflation in the country during the last three months so the central bank should reduce the mark-up rates. He said comparing current inflation figures with past five year’s data is not suitable when the world economies are facing the credit crunch where as five years back there was excess liquidity in the system.In his presentation to the industrialists Salim Raza justified the Monetary Policy announced last week. He said risks to Pakistan’s economy are relatively less as compared to 2008. Vulnerability of the external sector due to high prices of oil and other commodities; high cost of imports and weak prospects of foreign investment, have moderated considerably owing to improvements related to each area.The SBP governor said progress has been made to control inflation in the last four months. The slow improvement in core inflation is due to the fact that non-fuel and non-food items, such as wages and rents and fares etc. continue rising after the supply side shocks recede.This entrenched trend is because inflationary expectations remain; for the good reason that we have had 12 months of high inflation.He said that by the end of FY09 there will be some reduction in both the fiscal and external current account deficits relative to FY08. The demand pressures have not completely dissipated despite a slowdown in economic activity, Raza said adding that the high expected average CPI inflation of 20 percent for FY09 (significantly higher than the FY09 target of 11 percent) and its persistence, reflected by core inflation measures, clearly reflect the risk on this front. “We have seen an unprecedented fall in banking liquidity post June,” he said. Between July 1 and Jan 10 deposits shrank by 3.4 per cent, or Rs128 billion, total credit grew 11 per cent or Rs500bn, putting a strain of Rs628bn on the system, or shrinking available liquidity by 14 per cent. This level of contraction of liquidity would have raised interest rates regardless of where the discount rate was. He emphasised to develop a string bound market in Pakistan in order to avoid such liquidity crunch issues in future. The segregation of debt and monetary management were positive steps in the development of a liquid government debt market; Ministry of Finance will now decide the cut off yields of T-bills and PIBs.SBP increased banks’ limits for Export Finance Scheme (EFS) by Rs25bn from Rs181bn to Rs206.3bn. The limits for Long Term Financing Facility LTFF were raised Rs10 billion from Rs9.5 billion to Rs19.5 billion, he reminded. Salim Raza said that there are indications of an improvement in the current account balance due to falling international commodity prices and strong remittances, however the balance of payments position is still exposed to several risks.

Suprious ghee sales causing health issues

By Jawwad Rizvi
LAHORE: The sale of substandard and expired ghee and cooking oil of famous brand is continued unabatedly in the provincial metropolis and other cities at the Utility Store Corporation (USC) stores and franchises.
Consumption of the expired ghee and cooking oil has been adversely affecting the health of people while the authorities concerned are not taking notice of it. The News has found in a survey of the various USC Stores and franchisees of the city and adjoining areas of the provincial metropolis had found that the USC supplied expired ghee and cooking oil to the stores again. The managers of the USC stores and franchises usually sent back expiry items to the warehouses of the Corporations on the complaints of consumers or their routine checking. But the USC management at warehouses sent it back to the stores.
In the case of ghee and cooking oil pouch bag the management of warehouses sent back supply to the stores without cartons. It has found that the stores managers sent the complaints to the management of the Corporation regarding the expired products supply. They have also been informing the customers’ complaints to management regularly. They are pointing out the substandard quality of cooking oil and ghee to the USC high-ups.
Store manger of urban area of the city disclosed to this correspondent on the condition of anonymity that he had sent back ghee and cooking oil to the warehouse on the account of customers’ complaints one week ago. However, same ghee and cooking oil had supplied again with the instructions to sell this lot as early as possible, he added.
Another manger deputed at a stored situated in a middle class locality said ghee and cooking oil was supplied after January 27. This time both items are supplied in plastic bags rather in cartons. The expiry dates of pouch bags are printed on the cartons so now we don’t know the expiry date of the supply’, he added. He also confirmed the instructions of selling the lot as early as possible.
Another manger of a franchise situated at Lahore-Garanwala road said almost every item sold here and he had not received any complaints about the expiry date due to lack of awareness among the people. However, he mentioned that he had received complaints about ghee and cooking oil from the customers. The customers’ complaint that when the put cooking oil and ghee on fire it gives bad smell, he said. “I twice sent back the expiry items to the warehouse but I received it again with the instructions to sell it”, he said.
When contacted, Regional Manager USC Lahore-I Faizan Ahmed said they got back expired items from the stores. He further said that expired items had not supplied again to any store and sent back to the companies.
It is important to mention here that The News had already pointed out this issue some three months back when a lower cadre officer of armed forces offices had compliant about the sale of substandard ghee at cantonment areas USC store.
On the other hand an official of the USC Lahore warehouse revealed that there was still huge quantity of expired ghee and cooking oil in warehouse. He said with the connivance of the USC staff and ghee and cooking oil supplying companies the expiry ghee and cooking oil was not sent back to the factories physically while in documents the factory managers showed it expired and cleared the accounts. Latter, this expired ghee and cooking oil supplied back to stores and franchises. Usually, expired ghee and cooking oil sent to the rural areas and suburbs due to lack of knowledge among the people and they consumed it without raising their voices.
An official of a leading ghee and cooking oil brand said the company always welcome the expired items to maintain its standard. It is not suitable for any company that its expired products sell in the market as it will damage repute of the company. He further said the company not only got back the expired items from stores but also from open market as well.
When contacted, General Manager Vigilance USC, Lt Col (Retd) Muhammad Naseer said that the Corporation had strictly banned sale of expired items every store. He said no senior official of the Corporation was involved in heinous crime. “If the sale of expired item is continued at any store then it is only due to the carelessness of respective Zonal officers and the corporation will take stern action against the culprits”, he added.

Suprious ghee sales causing health issues

By Jawwad Rizvi
LAHORE: The sale of substandard and expired ghee and cooking oil of famous brand is continued unabatedly in the provincial metropolis and other cities at the Utility Store Corporation (USC) stores and franchises.
Consumption of the expired ghee and cooking oil has been adversely affecting the health of people while the authorities concerned are not taking notice of it. The News has found in a survey of the various USC Stores and franchisees of the city and adjoining areas of the provincial metropolis had found that the USC supplied expired ghee and cooking oil to the stores again. The managers of the USC stores and franchises usually sent back expiry items to the warehouses of the Corporations on the complaints of consumers or their routine checking. But the USC management at warehouses sent it back to the stores.
In the case of ghee and cooking oil pouch bag the management of warehouses sent back supply to the stores without cartons. It has found that the stores managers sent the complaints to the management of the Corporation regarding the expired products supply. They have also been informing the customers’ complaints to management regularly. They are pointing out the substandard quality of cooking oil and ghee to the USC high-ups.
Store manger of urban area of the city disclosed to this correspondent on the condition of anonymity that he had sent back ghee and cooking oil to the warehouse on the account of customers’ complaints one week ago. However, same ghee and cooking oil had supplied again with the instructions to sell this lot as early as possible, he added.
Another manger deputed at a stored situated in a middle class locality said ghee and cooking oil was supplied after January 27. This time both items are supplied in plastic bags rather in cartons. The expiry dates of pouch bags are printed on the cartons so now we don’t know the expiry date of the supply’, he added. He also confirmed the instructions of selling the lot as early as possible.
Another manger of a franchise situated at Lahore-Garanwala road said almost every item sold here and he had not received any complaints about the expiry date due to lack of awareness among the people. However, he mentioned that he had received complaints about ghee and cooking oil from the customers. The customers’ complaint that when the put cooking oil and ghee on fire it gives bad smell, he said. “I twice sent back the expiry items to the warehouse but I received it again with the instructions to sell it”, he said.
When contacted, Regional Manager USC Lahore-I Faizan Ahmed said they got back expired items from the stores. He further said that expired items had not supplied again to any store and sent back to the companies.
It is important to mention here that The News had already pointed out this issue some three months back when a lower cadre officer of armed forces offices had compliant about the sale of substandard ghee at cantonment areas USC store.
On the other hand an official of the USC Lahore warehouse revealed that there was still huge quantity of expired ghee and cooking oil in warehouse. He said with the connivance of the USC staff and ghee and cooking oil supplying companies the expiry ghee and cooking oil was not sent back to the factories physically while in documents the factory managers showed it expired and cleared the accounts. Latter, this expired ghee and cooking oil supplied back to stores and franchises. Usually, expired ghee and cooking oil sent to the rural areas and suburbs due to lack of knowledge among the people and they consumed it without raising their voices.
An official of a leading ghee and cooking oil brand said the company always welcome the expired items to maintain its standard. It is not suitable for any company that its expired products sell in the market as it will damage repute of the company. He further said the company not only got back the expired items from stores but also from open market as well.
When contacted, General Manager Vigilance USC, Lt Col (Retd) Muhammad Naseer said that the Corporation had strictly banned sale of expired items every store. He said no senior official of the Corporation was involved in heinous crime. “If the sale of expired item is continued at any store then it is only due to the carelessness of respective Zonal officers and the corporation will take stern action against the culprits”, he added.

Only NADRA will have access to mobile firms’ data: PTA

Saturday, January 31, 2009

By Jawwad Rizvi

LAHORE: The Pakistan Telecommunication Authority (PTA) will not give access to the database of cellular operators to anyone. Rather, it will ask the National Database and Registration Authority (NADRA) to verify it.PTA Chairman Dr Mohammed Yaseen said under the new mobile SIM activation system the operators would verify the data of the applicant from NADRA’s database before activating it. He rejected the impression that the new system was being launched on the instructions of some external forces.“The new system would not mean disclosure of personal data rather it would help strengthen security and service as well. Every subscriber will be provided ‘user guidance’ and activation would be possible after his identification,” he added.Dr Yaseen was speaking after inaugurating the newly established Mobilink Call Centre here on Friday. Only four media persons of different organisations were present as the PTA had not invited the media due to undisclosed reasons.However, Dr Yaseen expressed satisfaction over measures taken by cellular service providers upon PTA’s request to implement the new SIM issuance system with effect from February 1. “All arrangements made by the cellular operators are up to the standards set by the PTA,” he added.He said the new system is being adopted in view of the prevailing security situation, which would prove fruitful in coming days. “Now no SIM will be activated without verification of the subscriber from the National Database Registration Authority (NADRA).”Responding to a query, Dr Yaseen said the PTA had blocked some one million unregistered SIMs. Talking about the negative growth as mentioned in PTA’s first half report, he said Pakistan is also affected by the global financial crunch. “Pakistan is not out of the global credit crunch arena but the impact is not severe in the country,” he said, hoping that Pakistan would soon be out of this problem.He also said the PTA, in collaboration with mobile phone companies, is launching value-added services for the consumers. These value added services will be helpful for the operators to improve their annual revenue per unit (ARPU). About the introduction of 3G, he said this system provides quality and value-added services which of course would be provided to people across the country.On the occasion, Mobilink Chief Executive Officer Rashid Khan apprised the PTA chief of the measures taken in line with the Authority’s instructions and said Mobilink is fully prepared to ensure that all SIMs sold by the company from February 1 are verified and issued as per PTA’s guidelines.He said Mobilink has taken all necessary steps to make sure that SIMs sold by the company February 1 onwards, are activated after verification from NADRA. “Our sales channel, including franchises and retailer network are also aligned to ensure full compliance and seamless execution as per the new PTA regime.”All SIMs issued under the new regime will be inactive, that is, the user will not be able to make or receive calls till they are activated. Upon purchase of a SIM, users can dial 789, which is the uniform number for all operators, to connect to their respective operator’s call centre. Verified SIMs will be activated within 30 minutes from the time of request.

Cement Export to India Drastically dropped

India alleged Pakistan smuggling RDX in cement consignments
Indian businessman rules out the allegation

By Jawwad Rizvi
LAHORE: Cement export to India has drastically declined after imposition of non tariff barrier by Indian government and allegation of RDX smuggling through cement consignment from Pakistan.
On January 3 2009 India government had imposed 20 per cent import duty on Pakistan’s cement as non tariff barrier to discourage its import from Pakistan. The Indian government had also restrained their importers not to give fresh cement import orders to Pakistan.
Their fresh orders can be cancelled anytime which will stick their money they used in opening the LCs. The News has found following the Indian government non tariff barriers quantity of cement exported to Indian from Pakistan has drastically reduced.
Pakistan had exported only 50,841 metric tones cement to India through land and sea route in December 2008 and only 9200 metric tones in January 2009. In December 2008 Pakistan had sent 11,500 metric tones cement to India through sea and 39,300 metric tones through wagha border on rail. Similarly, in January 2009 only 3800 metric tones cement had transported through rail route and 5400 metric tones through sea route.
Meanwhile, Indian media has reported that Police and security agencies here have got a specific alert — from the police of a North Indian state — about RDX having been smuggled into the country as part of a cement consignment from Pakistan and the target being an oil refinery.
It has reported in Time of India more RDX could be coming in as part of cement or other consignments. That explained the reaction by Delhi Police and Mumbai Police during the days following the terror attacks on Mumbai. The two closest refineries to Delhi are at Panipat and Mathura. But most of the major refineries are near the coast, including those at Vishakhapatnam, Paradip and Jamnagar. The alert also mentioned railways as a possible “soft target''.
Several ports, especially those in Vishakhapatnam and Ennore (Tamil Nadu), were also on a high alert on Tuesday. Shipping officials met home ministry and IB officials reported in Indian media.
The media has further reported that security was stepped up at all railway stations in National Capital Region following the threat. The police deployed extra Quick Reaction Teams at New Delhi railway station and other stations.
Anand Visahl running a private company in Mumabi with the name of Vishal industries told this correspondent that their government had issued instructions to the importer to minimize import from Pakistan. Cement is the main item which is Indian are importing from Pakistan due to its fine quality and high demand, he mentioned. However, now the Indian media had reported that RDX is being smuggled through cement consignments from Pakistan, which is astonishing for the industry that how Pakistani could smuggled RDX in their international cement consignments, he remarked. He further said it is not possible that Pakistan could move RDX in its international cargo consignments.
When The News contacted Chairman, All Pakistan Cement Manufacturers Association (APCMA) Gen (Rtd) Rehmat Khan strongly protested on the new item appeared in “The Times of India” that RDX being smuggled into India with cement from Pakistan and the target being oil refinery.
“The news item is totally baseless and having no truth in it. The news is based on bad intention as it is technically impossible to pack any thing other than cement in a cement bag”, Rehmat said. It is also pertinent to understand the logistic involved in the export of cement, had any one who has any idea of cement manufactured or logistics of export he would never even think of such a possibility. It is assumed that some elements in India who are against any trade between the two countries are resort such frivolous and technically unsound allegation”, Rehmat remarked.
Gen (Rtd) Rehmat Khan said the cement manufacturers of Pakistan have been exporting cement to the Middle East, South Africa, Djibouti, Sudan and many other countries since 2002 and all the cement manufacturers are the responsible citizen. It is an intentional effort to de-stabilize the hard won export market for Pakistani cement and Pakistani manufacturers are urging the government to disallow the export of cement to India otherwise they will himself stop the export of cement to India. Rehmat further said “it is a matter of pride for us that quality of Pakistani cement is far better than Indian cement and it is not only acknowledged by Bureau of Indian Standards but the world market as well”.

Rs 90 million go in air daily

Change in NATO supplies route

By Jawwad Rizvi
LAHORE: Change of NATO supplies route from Pakistan to the Central Asian Sates (CAS) will cause some over Rs 90 million daily losses to the local economy.
Different segments of cargo business involved in the NATO supplies from Karachi ports to destination points of Afghanistan are getting good business from it on daily basis. The News has conducted a study from the different cargo companies, custom clearing agents, truckers, cargo handlers and others involved in moving the cargoes of NATO, ISAF and US government officials working in Afghanistan has found that a 20 feet cargo container creates an activity of some Rs 3 lakh for local economy other then the amount goes into the government kitty from different ways.
It has found some 300 and over cargoes containers are moving from Karachi ports to the different destinations in Afghanistan. Thus to move these containers an average economic activity in local economy is generating Rs 90 million daily. Thus in month the loss will be accumulated to Rs 2.7 billion and annual loss will be cross to Rs 32.4 billion.
On the other hand the ports have also been generating handsome amounts from the NATO, ISAF and US government officials’ cargoes in tune of port handling charges, wharfage charges, and demurrage charges as inflow of traffic at Karachi ports have substantially increased since the US intervened in Afghanistan. The News from the study has found from the different sources that almost 40 per cent of Afghan cargoes of different agencies are is clearing out of total importing cargoes container. Inflow of Afghan cargoes at the start of US arrival was almost 1000 containers when the US started setting up its bases in Afghanistan. However, now it has reduced to almost 300 containers daily. These containers bring the supportive material for the NATO and ISAF forces and US officials to run their affairs.
Interestingly, the cargo handling companies providing services to the NATO and others are many time are unaware about the cargo they were moving it from Karachi to Afghanistan.
CEO of one of the cargo company disclosed The News on the request that his name will keep secret NATO representative are deputed in the cargo companies which are providing service to the NATO. “The person directly keep liaison with the CEO while other employees remained ignorant about such move”, he added. Currently two big shipping lines of the world APL and Maersk are moving NATO, ISAF and US officials.
Another CEO of one of the largest private cargo company of Pakistan which is also dealing with the NATO supplies revealed on the condition of anonymity it will be great loss of the country when the NATO supplies will move from Pakistan to CAS. “Every state of north is offering its services to the US for NATO supplies” he said adding that the US also announced to move its NATO supplies traffic to CAS. Even Russia is also willing to provide its route for NATO supplies, he added. This shows how big economic activity is involved in it.
The role of National Logistic Company (NLC) is crucial in the all cargo traffic of NATO. No cargo company can move any cargo of NATO without the No Objection Certificate (NOC) of NLC. The NLC charge Rs 15000 to Rs 25000 for issuing ‘Covey Note’ to the transporters and private cargo company. Similarly, the NLC also charged Rs 1000 against every cargo moving to Afghanistan in tune of some security charges. On the other hand now FC is also started charging Rs 500 for each container moving to Afghanistan. An official of NLC on the request of not mention his name said the Company always exactly knows what is moving in the containers. However, many times cargo handlers was unaware about the shipments details even the people at the port also not know about the shipments details, he added. He also added a good business activity has been continued in logistic and cargo business through such supplies and it will affect if it will diverted to CAS. However, he was of the view that it is not as easy for NATO, ISAF and US officials to move their cargo from CAS as it depicting through their statements. By using Pakistan’s corridor their supplies usually reached to their destination within five to seven days from Karachi port to Afghanistan’s destination but by using CSA it will take minimum 20 days and some time more duration, he added.
If calculate the port handling charges of Pakistan International Container Terminal (PICT) is Rs 7388 for 20 feet containers and Rs 8718 from 40 feet containers. The wharfage charges at PICT including weighing and examining charges are 8379 if it clears through scanning then it become Rs 9204 for 20 feet containers. Similarly, the PICT gets huge amount in tune demurrage charges if the shipments clearance delayed.
Similarly, the cargo and trucking industry which is factually not documented anywhere so comprehensive data is not available but creating a large number employment. An average diesel consumption of for moving cargo from Karachi to Afghanistan is over 1200 litre. The government is also earning some over Rs 25 per litre from diesel. Thus the government is also getting a reasonable amount from the trade.
The drivers move NATO supplies trucks from Pakistan to Afghanistan are also charging three times more service charges then routine. Allah Muhammad running its trucks fleet from NWFP to Afghanistan initially refused to give any information by saying this is very risky business. Latter when asked again he disclosed they paid three times more wages to the drivers who drive the trucks of NATO supplies. However, he not given the rates saying it is his trade secret. The News from different other sources has found that the derivers who bring NATO supplies trucks charges Rs 1500 to 2000 per day.
General Manager Col Khalid Staff Officer of Director General NLC Major General Itiaz regarding the role of NLC in NATO supplies, he said he will not suppose to give information. “Even if I have information I will not divert it to anyone”, he added. When asked to pass on call to DG NLC, he (Col Khalid) refused and said he was not allowed to do so.
Meanwhile, The News has contacted other senior officials of NLC to ask the role of NLC in the whole supplies operations of NATO, ISAF and US government. However, no official of the NLC has come on the record saying that they were not allowed to spoke on this issue.
Brig Fahim director freight services of NLC posted at Karachi when asked about the NLC role, interestingly he replied NLC freight services does not handle NATO goods.

The news item was published in The News Islamabd front page on Jan 28 2009 and in Lahore front page on Jan 29 2009

Mobile money order service deal raises questions

Saturday, January 24, 2009

By Jawwad Rizvi
LAHORE: Pakistan Post Office (PPO) has struck an agreement for the Mobile Money Order (MMO) service with a leading cellular service operator with a customer base of over 30 million, sources told The News.
As per the agreement, the mobile operator will provide facilities of money order to its customers only. The agreement-signing ceremony was held in Islamabad and Ahsan Bashir Sheikh, Additional Director General (Financial Services), Pakistan Post, signed the deed on behalf of PPO while the vice president of the cellular service provider signed on behalf of his company.
Under the MMO service, customers of the Mobilink can remit money to anyone through a mobile phone SMS. Similarly, they can also withdraw or deposit up to Rs10,000. The customer needs to fill a form available at authorised Post Office branches across the country once the service is launched.
After the form is submitted, customer will be able to send and receive money orders to cellphone users via SMS within 24 hours.
Interestingly, the PPO claims that the cellular service users can withdraw their money anywhere in Pakistan but Mobilink does not cater to 66 per cent of the subscribers in Pakistan, which comes close to 60 million. On the other hand, PPO is a government organisation so it needs to have a uniform approach and cater to the people’s needs.
Government organisations are supposed to go through a proper bidding process for such activities. This will also help the government earn more money. However signing the MMO service agreement with a single operator, the PPO has ignored all other operators, an irregularity on the part of the organisation.
The MMO is an adaptation of the State Bank of Pakistan’s (SBP) branchless banking guidelines. However, the same guidelines indicate that Pakistan Post cannot take an initiative as a banking entity in the mobile commerce e-space.
The News contacted SBP spokesman Syed Wasimuddin on January 12 for the bank’s view on the issue, which according to him, were forwarded to the concerned department. However, when asked when the replies would be expected, the spokesman said he couldn’t say.
On the other hand, the Pakistan Post officials, who have been working on this service for over a year and a half, had predicted criticism from various quarters in case an agreement was signed. However, these warnings were ignored.
An official of PPO working on the MMO service project, who wished to remain anonymous, revealed that Mobilink executives monitored and directed the whole project. “The company’s executives sat with us in the PPO offices during the drafting of the project details,” he said. The mobile company officials provided consultative support to the PPO officials in this regard, he added.
He said that the official involved in the working of the service pointed out to the Director General that offering MMO to a single company would restrict many people from availing it.
The News contacted Director General Pakistan Post and Secretary Postal Services Division, Mohammed Ahmed Mian, in this regard who said that the PPO had signed an agreement of sharing of services. “Work on the project continued for the past year and a half year,” he said adding that the PPO was making arrangements for launching the service. When asked why the PPO had made agreement with a single operator, he said there is room for others but initially the project will be launched with a single company to keep an eye on the performance.

Published in The News Business pages

Wheat procurement

Friday, January 23, 2009

By Jawwad Rizvi
LAHORE: Following the target assigned by the federal government to different agencies for wheat procurement, Pakistan Agricultural Storage and Supplies Corporation (PASSCO) has chalked out a plan and placed orders for gunny bags.
The federal government has assigned 1.5 million tons procurement target and PASSCO has started preparations to meet it.
The Corporation has asked various factories to start making ‘bardana’ (gunny bags) for the wheat procurement season of 2009. It will start receiving the bags in mid-March as harvesting begins in April and gains momentum by the middle of the month. PASSCO also has a carry-over stock of gunny bags with the capacity for 300,000 tons of wheat.
Talking about the cost of gunny bags, sources said PASSCO estimated it at Rs85 per bag as the cost of production had increased. Besides the purchase of gunny bags, the Corporation is working on setting up procurement centres in areas to be allocated by the government in Punjab and other parts of the country.
Last year, PASSCO failed to meet the wheat procurement target of 1.4 million tonnes, though it had already purchased gunny bags for the task, officials revealed. That year PASSCO purchased a little more than 800,000 tons. However, it is expected to meet the target of 1.5 million tons this year, due to expectations of a good crop.
About current wheat stocks left with PASSCO, sources revealed that only 45,000 tons of wheat were lying with the Corporation, out of the total procured quantity of 857,000 tons last season.
Giving the break-up of left-over stocks, they said around 26,000 tons of NWFP’s share is yet to be lifted and 6,000 tons of AJK. The Corporation as per its mandate provides a share to Balochistan, NWFP, AJK, Northern Areas, armed forces and other areas where it is needed. This year the Corporation also provided 50,000 tons of wheat to Utility Stores to ease the flour crisis.

Govt to procure 6.5m tonnes wheat this year

Tuesday, January 20, 2009

By Jawwad Rizvi
LAHORE: The federal government has fixed a wheat procurement target of 6.5 million tonnes for the current year, expecting a good crop following an aggressive wheat sowing campaign across the country.
The News has learnt that for the first time the federal government has assigned a wheat procurement target of 300,000 tonnes to NWFP and 200,000 tonnes to Balochistan. It has directed Punjab to procure 3.5 million tonnes while Pakistan Agricultural Storage and Supplies Corporation (PASSCO) would procure 1.5 million tonnes and Sindh one million tonnes.
The targets were assigned in a meeting held at Islamabad. The meeting was chaired by Federal Minister for Food and Agriculture Nazar Muhammad Gondal and attended by representatives of the four provinces, Ministry of Food, Agriculture and Livestock (MINFAL) and finance ministry.
The meeting discussed methods of wheat procurement at the price announced by the government before crop cultivation. Prime Minister Yousuf Raza Gilani had announced a procurement price of Rs950 per 40 kg for the next season.
Following the announcement of the attractive price which is now almost equal to the regional wheat price, the farmers cultivated more wheat sparking hopes of a bumper crop this year. The government has fixed a target of 25 million tonnes for wheat production this year.
The meeting also asked the finance ministry to prepare a plan to ensure availability of financial resources at the time of procurement. It also asked PASSCO official to prepare a wheat procurement plan including funds needed for the drive. It was decided that the government would continue buying the commodity from farmers till the last grains from fields were lifted.
The meeting noted that necessary arrangements for wheat procurement were crucial as if the government failed to buy from the farmers at the prescribed rate, it would negatively affect production in future. It was also pointed out that if government agencies succeeded in procuring wheat at Rs950 per 40 kg, the country would not face food security problems like those it encountered during the last few years and spent huge foreign exchange on wheat import.
The meeting participants were of the view that wheat procurement at the set price would also open a window for export of the commodity in coming years when surplus stocks would be available.
Recently, rice farmers suffered a lot as the government failed to ensure the commodity’s purchase at the set price. If the same mistake is repeated in the case of wheat procurement, its production would be affected. The government always has figures from all districts and it can easily devise a plan to purchase every grain.

published in The News business pages

Senate body condemns leniency to adulterators

Friday, January 16, 2009

By Jawwad Rizvi

LAHORE: The senate standing committee on food, agriculture and livestock has strongly criticised the judiciary for not giving exemplary punishments to the people involved in the business of spurious pesticides and fertilizer. The senate standing committee on agriculture and food held a meeting at civil secretariat on Thursday to discus the position of pesticides’ and fertilizers’ adulteration and availability of fertilizers to the farmers of Punjab. The members of the meeting were unanimous that the current fertilizers crisis was self-created by some dealers and manufacturers while the government had also taken late decision for fertilizers’ import. The meeting was chaired by Senator Muhammad Amjad Abbas who stressed the need for expediting the prosecution of the cases against the people and companies involved in the adulteration of pesticides and fertilizers. The meeting was attended by senators Shuja-ul-Mulk, Agha Pari Gul, Abbas Komali, Mrs Sameen Saddiqui, Mohabat Khan Mari, Raza Mohammad Raza, Dr Abdul Malik, Punjab Agriculture Minister Ahmed Ali Aulkah, Punjab Food Minister Malik Nadeem Kamran, Punjab Agriculture Secretary Javeed Awan, Federal Secretary MINFAL Zia-ur-Rehman, DG Agriculture Dr Anjum Ali and other officials concerned. The meeting has issued instruction to the concerned authorities to ensure timely availability of fertilizers to the farmers in cotton and wheat growing areas of the Punjab. On pesticide issue, the chair with the suggestions of the participants has proposed that the services of legal experts at district or thesil levels should be hired. The participants of the meeting were of the view that sale of spurious pesticide was a heinous crime, as it damaged the national economy thrice. The meeting has also grilled the police on not taking action against the influential people involved in the business of fake pesticides and fertilizers. The chair has issued instruction to the police to resolve all the pending cases registered against adulterators. On the fertilizer issue, every participant has given his input. Senator Muhammad Amjad Abbas said the dealers were mainly involved in the shortage. He said the federal government had imported urea late due to financial problem. However, the Punjab government has been doing its best administrative efforts to handle the situation, he added. “Once there is shortage and supply side problem in the system then the overcharging can not be controlled”, he remarked. Senator Muhammad Amjad Abbas also asked why the police and administration were not taking action against the powerful fertilizer dealers who were selling fertilizers more than the officially fixed price of urea fertilizer. The meeting was informed that 1.3 million urea bags needed in D G Khan Division while no urea was available in the division. Similarly, Senator Raza Mohammad Raza, Dr Abdul Malik, representing Balochistan, pointed out that they were also facing urea shortage. They informed that wheat had been sowed in 5000 acre of Merani Dam but now the farmers were looking for urea for their crop. Secretary MINFL Zia-ur-Rehman said the government had allowed the import of some one million tone urea against the shortage of six lakh ton. The total annual urea production of the country is 4.8 million tones while the consumption is 5.4 million tones. However, this year area under wheat cultivation has been substantially increased.

Published in The News Lahore city pages

Cellphone firms seek increase in call rates

Saturday, January 17, 2009

By Jawwad Rizvi

LAHORE: Two major cellular operators of the country have proposed increase in call rates, saying revenues of the telecom industry have been declining which in turn affects investment in the sector.The News has learnt that the proposal was floated in a meeting held at Pakistan Telecommunication Authority (PTA) headquarters on Wednesday, January 14, 2009 in the morning session and continued till lunch time.Chairman PTA, Dr Yasin chaired the meeting, which was attended by the Chief Executive Officers (CEOs) of all cellular operators of Pakistan and member finance to evaluate the financial situation of the cellular industry.Sources privy to the meeting revealed that various issues of the telecom industry were discussed in the meeting. The meeting also talked about the impact of the current global financial crunch and national issues for the telecom industry.Cellular operators’ representatives stated that their revenue had registered a declining trend. Representatives of the two operators, of which one has the country’s largest customer base and the other is a sister organisation of the national telecommunication company, had proposed to increase call rates in order to attract further investments and maintain the quality of their services.They said the sector had received the highest Foreign Direct Investment (FDI) during the last couple of years and in the current scenario no further investments are expected.Cellular operators said the revenue of the telecom industry dropped due to an increase in taxes. The Average Revenue Per User (ARPU) has been reduced to $2.7 per consumer, as compared to last year’s $4 per consumer in the same period. They proposed the burden should be shifted on to the consumers by increasing call rates.Of the two operators’ representatives, one is based in China while the other is UAE-based. The UAE-based representative opposed the idea of increasing call rates, saying that it would reduce the consumer base. They also opposed the idea as the customers are already affected with the current high tax rates and imposition of new 5 per cent surcharge on every easy load has also put extra burden on the customers. They said the ARPU was declining due to many other reasons, not only due to taxes. On the other hand the Norway based cellular operator representative remained indifferent to this issue.A spokesman of the sister organisation of National Telecommunication Company confirmed to The News that the meeting of all mobile company CEO’s, PTA Chairman, Member Finance PTA. However, he said that the meeting was not for increasing mobile tariffs, but rather to evaluate the financial situation of the cellular industry in the country. He said various suggestions were discussed for the betterment of the industry and consumers. This meeting was called in by the PTA.Other issues which were also discussed in the meeting included UAN, SMS interconnection, infrastructure sharing. The meeting also discussed different competitive and aggressive call rates. It mentioned that the telecom industry was still in its growing phase, although the pace of growth was slower compared to previous years. This is understandable given the global financial crisis, rising costs in Pakistan, as well as the maturity phase, which the industry is now experiencing.

Published in The News Business pages

Cellphone firms seek increase in call rates

Saturday, January 17, 2009

By Jawwad Rizvi

LAHORE: Two major cellular operators of the country have proposed increase in call rates, saying revenues of the telecom industry have been declining which in turn affects investment in the sector.The News has learnt that the proposal was floated in a meeting held at Pakistan Telecommunication Authority (PTA) headquarters on Wednesday, January 14, 2009 in the morning session and continued till lunch time.Chairman PTA, Dr Yasin chaired the meeting, which was attended by the Chief Executive Officers (CEOs) of all cellular operators of Pakistan and member finance to evaluate the financial situation of the cellular industry.Sources privy to the meeting revealed that various issues of the telecom industry were discussed in the meeting. The meeting also talked about the impact of the current global financial crunch and national issues for the telecom industry.Cellular operators’ representatives stated that their revenue had registered a declining trend. Representatives of the two operators, of which one has the country’s largest customer base and the other is a sister organisation of the national telecommunication company, had proposed to increase call rates in order to attract further investments and maintain the quality of their services.They said the sector had received the highest Foreign Direct Investment (FDI) during the last couple of years and in the current scenario no further investments are expected.Cellular operators said the revenue of the telecom industry dropped due to an increase in taxes. The Average Revenue Per User (ARPU) has been reduced to $2.7 per consumer, as compared to last year’s $4 per consumer in the same period. They proposed the burden should be shifted on to the consumers by increasing call rates.Of the two operators’ representatives, one is based in China while the other is UAE-based. The UAE-based representative opposed the idea of increasing call rates, saying that it would reduce the consumer base. They also opposed the idea as the customers are already affected with the current high tax rates and imposition of new 5 per cent surcharge on every easy load has also put extra burden on the customers. They said the ARPU was declining due to many other reasons, not only due to taxes. On the other hand the Norway based cellular operator representative remained indifferent to this issue.A spokesman of the sister organisation of National Telecommunication Company confirmed to The News that the meeting of all mobile company CEO’s, PTA Chairman, Member Finance PTA. However, he said that the meeting was not for increasing mobile tariffs, but rather to evaluate the financial situation of the cellular industry in the country. He said various suggestions were discussed for the betterment of the industry and consumers. This meeting was called in by the PTA.Other issues which were also discussed in the meeting included UAN, SMS interconnection, infrastructure sharing. The meeting also discussed different competitive and aggressive call rates. It mentioned that the telecom industry was still in its growing phase, although the pace of growth was slower compared to previous years. This is understandable given the global financial crisis, rising costs in Pakistan, as well as the maturity phase, which the industry is now experiencing.

Published in The News Business pages

Furnace oil prices raised

Saturday, January 17, 2009

By Jawwad Rizvi

LAHORE: Pakistan Refinery Ltd (PRL) and Pak-Arab Refinery Ltd (PARCO) on Friday increased prices of furnace oil.The PRL has fixed new price of furnace oil at Rs21,793 per tonne excluding General Sales Tax (GST) compared to previous Rs21,070, an increase of Rs723. Similarly, PARCO increased furnace oil price by Rs310 at Rs22,760 per tonne excluding GST compared to Rs22,450 earlier.The Ministry of Petroleum in its notification dated January 14 had announced that the review of petroleum products’ prices including high-speed diesel (HSD) would be on monthly basis ie first of every month instead of existing fortnightly review. The next review would now be on February 1.The notification stated that the new monthly system would also be applicable to the refineries as well. However, the two refineries have increased the prices of furnace oil despite the government’s instruction. —JR

Published in The News in Business pages

Furnace oil prices raised

Saturday, January 17, 2009

By Jawwad Rizvi

LAHORE: Pakistan Refinery Ltd (PRL) and Pak-Arab Refinery Ltd (PARCO) on Friday increased prices of furnace oil.The PRL has fixed new price of furnace oil at Rs21,793 per tonne excluding General Sales Tax (GST) compared to previous Rs21,070, an increase of Rs723. Similarly, PARCO increased furnace oil price by Rs310 at Rs22,760 per tonne excluding GST compared to Rs22,450 earlier.The Ministry of Petroleum in its notification dated January 14 had announced that the review of petroleum products’ prices including high-speed diesel (HSD) would be on monthly basis ie first of every month instead of existing fortnightly review. The next review would now be on February 1.The notification stated that the new monthly system would also be applicable to the refineries as well. However, the two refineries have increased the prices of furnace oil despite the government’s instruction. —JR

Published in The News in Business pages

Govt to procure 6.5m tonnes wheat this year

Tuesday, January 20, 2009

By Jawwad Rizvi

LAHORE: The federal government has fixed a wheat procurement target of 6.5 million tonnes for the current year, expecting a good crop following an aggressive wheat sowing campaign across the country.The News has learnt that for the first time the federal government has assigned a wheat procurement target of 300,000 tonnes to NWFP and 200,000 tonnes to Balochistan. It has directed Punjab to procure 3.5 million tonnes while Pakistan Agricultural Storage and Supplies Corporation (PASSCO) would procure 1.5 million tonnes and Sindh one million tonnes.The targets were assigned in a meeting held at Islamabad. The meeting was chaired by Federal Minister for Food and Agriculture Nazar Muhammad Gondal and attended by representatives of the four provinces, Ministry of Food, Agriculture and Livestock (MINFAL) and finance ministry.The meeting discussed methods of wheat procurement at the price announced by the government before crop cultivation. Prime Minister Yousuf Raza Gilani had announced a procurement price of Rs950 per 40 kg for the next season.Following the announcement of the attractive price which is now almost equal to the regional wheat price, the farmers cultivated more wheat sparking hopes of a bumper crop this year. The government has fixed a target of 25 million tonnes for wheat production this year.The meeting also asked the finance ministry to prepare a plan to ensure availability of financial resources at the time of procurement. It also asked PASSCO official to prepare a wheat procurement plan including funds needed for the drive. It was decided that the government would continue buying the commodity from farmers till the last grains from fields were lifted.The meeting noted that necessary arrangements for wheat procurement were crucial as if the government failed to buy from the farmers at the prescribed rate, it would negatively affect production in future. It was also pointed out that if government agencies succeeded in procuring wheat at Rs950 per 40 kg, the country would not face food security problems like those it encountered during the last few years and spent huge foreign exchange on wheat import.The meeting participants were of the view that wheat procurement at the set price would also open a window for export of the commodity in coming years when surplus stocks would be available.Recently, rice farmers suffered a lot as the government failed to ensure the commodity’s purchase at the set price. If the same mistake is repeated in the case of wheat procurement, its production would be affected. The government always has figures from all districts and it can easily devise a plan to purchase every grain.

Published in The News in business pages

Govt to procure 6.5m tonnes wheat this year

Tuesday, January 20, 2009

By Jawwad Rizvi

LAHORE: The federal government has fixed a wheat procurement target of 6.5 million tonnes for the current year, expecting a good crop following an aggressive wheat sowing campaign across the country.The News has learnt that for the first time the federal government has assigned a wheat procurement target of 300,000 tonnes to NWFP and 200,000 tonnes to Balochistan. It has directed Punjab to procure 3.5 million tonnes while Pakistan Agricultural Storage and Supplies Corporation (PASSCO) would procure 1.5 million tonnes and Sindh one million tonnes.The targets were assigned in a meeting held at Islamabad. The meeting was chaired by Federal Minister for Food and Agriculture Nazar Muhammad Gondal and attended by representatives of the four provinces, Ministry of Food, Agriculture and Livestock (MINFAL) and finance ministry.The meeting discussed methods of wheat procurement at the price announced by the government before crop cultivation. Prime Minister Yousuf Raza Gilani had announced a procurement price of Rs950 per 40 kg for the next season.Following the announcement of the attractive price which is now almost equal to the regional wheat price, the farmers cultivated more wheat sparking hopes of a bumper crop this year. The government has fixed a target of 25 million tonnes for wheat production this year.The meeting also asked the finance ministry to prepare a plan to ensure availability of financial resources at the time of procurement. It also asked PASSCO official to prepare a wheat procurement plan including funds needed for the drive. It was decided that the government would continue buying the commodity from farmers till the last grains from fields were lifted.The meeting noted that necessary arrangements for wheat procurement were crucial as if the government failed to buy from the farmers at the prescribed rate, it would negatively affect production in future. It was also pointed out that if government agencies succeeded in procuring wheat at Rs950 per 40 kg, the country would not face food security problems like those it encountered during the last few years and spent huge foreign exchange on wheat import.The meeting participants were of the view that wheat procurement at the set price would also open a window for export of the commodity in coming years when surplus stocks would be available.Recently, rice farmers suffered a lot as the government failed to ensure the commodity’s purchase at the set price. If the same mistake is repeated in the case of wheat procurement, its production would be affected. The government always has figures from all districts and it can easily devise a plan to purchase every grain.

Published in The News in business pages

China-based telecom firm threatened against 'vulgar' publicity

By Jawwad Rizvi

LAHORE: A China-based telecommunication company, which has invested billions of rupees in Pakistan, has recently received threats from Jamaat Tauhid-wal-Jehad to stop what it called its 'vulgar' advertisements. A threat letter was received by the Quetta office of the company by post on December 04, 2008, The News has learnt. The letter, which is also available with The News, was on a printed letter pad of Jamaat Tauhid-wal-Jehad, and its text was also printed, not hand written. The logo of the letter contained the picture of a flag with a man covering his face and holding a sword and a shield. Sources said the letter was signed by Abu Omar Saif on behalf of Jamaat Tauhid-wal-Jehad, which is an unknown organization in the country. The company, in its letter to Interior Secretary Syed Kamal Shah on December 5, 2008, mentioned of the threat and sought adequate security for its staff throughout the country, especially the women at their Quetta office. "Similar threats from unknown individuals and groups have become a recurrent feature now and where such threats intimidate company's foreign nationals working in Pakistan, these may also hamper further investment in the country by our parent company, the letter sent to Syed Kamal Shah read. Earlier, the company had also received security threats at their Islamabad, Blue Area office, on November 27, 2008, about which the company informed the Pakistan Telecommunication Authority (PTA). Taking action on it, PTA Telecom Member Mushtaq Ahmed Bhatti had written a letter 2(1)/2008-M(T) to the secretary of the Interior Ministry on December 03, 2008, requesting for taking action to protect the company. Jamaat Tauhid-wal-Jehad in its letter had told the company to stop 'vulgarity and obscenity' in their public promotion campaigns. The letter said the company had employed at their offices indecently dressed women, whom it should sack. Further, the letter demanded that all the billboards, posters, banners and other promotional campaign material should be removed because they are obscene. The outfit has instructed the company to use natural scenes in their promotional campaigns. The letter gave 10 days to the company and warned that if the company does not act upon its instructions, then it will target the company installations. "All installations of the company will be our target and our snipers will easily silent the company's receivers and senders installed at towers from 1500 meter distance," letter of Jamaat Tauhid-wal-Jehad read. The letter said the company had right to do business freely within the norms, and should respect our religious rights. On the company's request, the ministry of interior on December 24, 2008, in a letter No. 5/11/2008-KP asked all the provincial home secretaries and police officers, and the chief commissioner and IG police of Islamabad to make foolproof security arrangements to avert any untoward incident. The company spokesman told The News that all its advertisements were aimed at informing the public of all the options available to them, in a simple and easy-to-understand language through common people not celebrities. "Our company has never used women as main characters in its advertising campaigns; in fact, we have set the trend of not using glamorous female faces and moved away from songs and dances our advertisements," he stated. The spokesman further said the company - the world's biggest cellular communications company now investing in Pakistan - seeks full protection of the government to its offices, installations and staff members, especially women, against this threat.