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.