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.